Because of the low non-tax income projection for the current fiscal year, the Finance Ministry estimates that the overall budget deficit will rise by Rs. 327 billion to Rs. 3,747 billion.
According to the Finance Ministry’s Mid-year Budget Review report, the entire budget deficit for the current fiscal year is expected to be Rs. 3,747 billion, up from the original forecast of Rs. 3,420 billion.
However, the overall budget deficit is expected to be reduced to 5.8 percent of GDP, down from 6.3 percent of GDP.
It’s worth noting that the previous administration rebased the economy’s size from Rs. 53,867 billion to Rs. 63,978 billion.
This has given the administration some breathing room in terms of decreasing the budget deficit as a proportion of GDP.
According to the report, the government budget deficit for the current fiscal year is expected to reach Rs. 4,317 billion, up from the earlier forecast of Rs. 3,990 billion.
The provincial surplus of Rs. 570 billion, on the other hand, will cut the estimated budget deficit ceiling for the current fiscal year.
During the current fiscal year, the overall primary budget deficit has been amended from Rs. 360 billion to Rs. 687 billion.
It is vital to note that the FBR target was revised in accordance with the IMF agreement.
The Finance Ministry also forecasted Rs. 1,618 in revised non-tax revenue. The previous prediction of Rs. 2,080 billion was cut by Rs. 462 billion.
The provisional share under the divisible pool has been amended from Rs. 3,412 billion to Rs. 3,599 billion, according to the report, owing to an increase in FBR revenue.
To read our blog on “Pakistan Fiscal Deficit to Hit 9.5pc Of GDP: Fitch Ratings,” click here.
