November 4, 2022 (MLN): Budget deficit during the first quarter of the ongoing fiscal year 2022-23 clocked in at 1% of the GDP (Rs809 billion) compared to 0.7% (Rs438bn) in the same period last year, fiscal operations data released by the Ministry of Finance showed on Friday. 

On the other hand, the government booked a primary surplus of 0.2% of the GDP (Rs145.26bn) compared to 0.3% (Rs184.23bn) in the same period last fiscal year.

The primary and budget balance calculations were based on a FY23 GDP of Rs78.2 trillion against last year’s Rs66.95tr.

On the revenue front, the government reported total revenue of Rs2.02tr with tax revenue contributing around Rs1.78tr (88% of the total revenue) while the remainder of Rs234.92bn was through non-tax revenue. 

Within the overall tax collection, majority of it around Rs682bn came from direct taxes, another Rs229.9bn came from customs, Rs642.14bn from sales tax and Rs79.12bn through Federal Excise Duties. 

Moreover, under the non-tax revenue head, the major chunk was contributed by petroleum levy at Rs47.47bn against the 1QFY23 target of Rs213.75bn. Collections under the petroleum levy are a major non-tax revenue driver and the shortfall was primarily due to lower incident of PL on fuel items during the quarter under review as government wanted to keep fuel prices low to contain inflation. 

On the expenditure front, the government spent a total of Rs2.75tr, of which nearly 92% (Rs2.54tr) was done to manage current expenditures namely mark-up payments (Rs1.83tr), defence (Rs312.9bn), pension (Rs171.38bn), and others (Rs395bn).

To fill the budget gap, the government during the 1QFY23 borrowed Rs808.7bn. Of this an around 57% (Rs465.2bn) was borrowed externally (aid, loans, grants, etc.). Most of the external financing was utilized to pay off external debt during the period under review. During the 1QFY23, the government repaid Rs434.86bn of the total external borrowings of Rs465.2bn. 

Meanwhile, the government also borrowed another Rs778.36bn from internal sources including through GOP Ijara Sukuk (Rs120.7bn), treasury bills (Rs626.7bn), and banks (net borrowing of Rs290.4bn) during the period under review.

Copyright Mettis Link News

Posted on: 2022-11-04T20:42:22+05:00