May 21, 2019 (MLN): Fiscal deficit during July to March FY19 has widened by Rs 442 billion to Rs 1.9 trillion. Fiscal deficit increased to 5% of GDP from 4.3% in the corresponding period of last year.
According to latest data released by the Finance Ministry, during the period under review, defence expenditure amplified by 24% to Rs.774 billion while Debt and interest payments increased by 24% to Rs.1.46 trillion.
The development spending and net lending became the major victim as it slashed to Rs684 billion as against Rs1 trillion during the corresponding period of the last fiscal year, displaying a decline of 32%.
Total expenditures were booked at Rs5.5 trillion in the July-March FY19 out of which the major chunk of up to Rs4.8 trillion was consumed by the current expenditures.
However, tax revenue improved negligibly by 3% to Rs 3.16 trillion, whereas, non-tax revenues declined by 17% to Rs 421.6 billion against Rs 506 billion recorded in same period last year.
Federal tax revenues stood at Rs2.87 trillion and provincial governments collected Rs287.7 billion, both showing an insignificant increase of 3% compared to the corresponding period last year.
The data further showed that more than half of the budget deficit of Rs1.4 trillion which was around 73% of the total budget deficit was financed through domestic financing, whereas, the deficit of Rs 524.4 billion was financed through external borrowings.
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