Government fails to meet Fiscal Deficit target in FY18

Government missed the fiscal deficit target of 4.1 percent set for 2017-18 as the deficit reached nearly 6.6 percent of the gross domestic product because of higher spending.

According to the figures posted on the website of the ministry of finance the budget deficit reached nearly Rs.2,260 Billion or 6.6 percent of the GDP as compared with Rs.1,863 Billion or 5.8 percent of the GDP of 2016-17.

Revenue collection in FY18 increased by 11.50% to Rs 4,065 Billion with tax collection reaching 13% of GDP compared to 12.5% in FY17.

 Sales tax collection increased by 12.7% to Rs 1,491 Billion.

"The tax revenue collection target was met but it was due to stopping the claims of exporters, government released smaller refunds as against their claims, which amounted in the range of Rs.250 Billion to Rs.300 billion", said an analyst

Interest and principal repayments increased by 11.3% to Rs.1,499 Billion while defence expenditure increased by 16% to Rs1,030 Billion