Budget deficit target missed – Business Recorder
ISLAMABAD: The government failed to meet the budget deficit target for the last financial year as the financial year (2021-22) ended with a deficit of 7.9% or 5.259 trillion rupees against the target of 6.3% set in the budget.
According to the consolidated tax operations summary uploaded by the Finance Division on Friday, total revenue was Rs 8035.383 billion against total expenditures of Rs 13295.275 billion in the last fiscal year.
Tax revenue was 6755 billion rupees with 6142 billion federal rupees and 612.366 billion provincial rupees – and non-tax revenue of 1280 billion rupees – 1151 billion federal rupees and 128.297 billion provincial rupees
Federal taxes included direct taxes of 2.280 billion rupees, international trade (customs) taxes of 1.009 billion rupees, as well as sales taxes of 2.531 billion rupees and federal excise taxes of 320.978 billion rupees.
Total expenditure in the last financial year (2021-22) was recorded at Rs 13,295.275 billion with; current expenditure of 11,521.375 billion rupees of which increases amounted to 3,182.432 billion rupees – 2,828.572 billion domestic rupees and 353.860 billion foreign rupees, defense expenditure 1,411.646 billion rupees.
FY22 budget deficit expected to come in at 9% of GDP – the highest ever in the country’s history
Pension expenditure amounted to 541.862 billion rupees, civil government management 546.725 billion rupees while grants 1,529.609 billion rupees and grants to others 1,141.830 billion rupees. Development expenditure and net lending was 1,657.422 billion rupees, while a statistical discrepancy of 116.478 billion rupees was found.
Fiscal deficit financing was covered by borrowing Rs. ) to 4,081 billion rupees, which included non-bank loans. loan of 980.570 billion rupees and bank loan of 3,100.912 billion rupees.
Provincial taxes of 612.366 billion rupees included sales tax on services of 355.720 billion rupees, excise duty of 8.896 billion rupees, stamp duty of 70.888 billion rupees and motor vehicle tax of 36.219 billion rupees, as well as 140.643 billion rupees.
Non-tax revenue of 1,280.215 billion rupees included 1,151.918 billion federal non-tax rupees; (i) surcharge (PSE and others) of Rs 87.792 billion; (ii) a dividend of 42,872 billion rupees; (iii) profit of PTA and others Rs 103.444 billion; (iv) excess profit of the State Bank of Pakistan Rs 473.574 billion; (v) defense revenue Rs 17.261 billion; (vi) passport fee of Rs 21.619 billion; (vii) rebate withheld on crude oil of Rs 16.504 billion; (viii) oil/gas royalties Rs90.842 billion; (xi) exceptional levy on crude oil of Rs 14.397 billion; (x) LPG Petroleum Tax of Rs 3.659 billion, as well as Gas Infrastructure Development Tax of Rs 18.619 billion and Natural Gas Development Surcharge of Rs 20.372 billion, Petroleum Tax of Rs 127.529 billion rupees and other 113.434 billion rupees. The provincial non-tax amounted to 128.297 billion rupees. The provinces gave a surplus of Rs350.991 billion: Punjab Rs351.30 billion, Sindh Rs48.786 billion, while KP negative of Rs49.179 billion and Balochistan negative of Rs0.157 billion.
Copyright Business Recorder, 2022