ISLAMABAD: The former PDM government left behind a massive fiscal deficit of 7.7 per cent of gross domestic product (GDP) or Rs6.521 trillion as debt servicing touched a record Rs5.831 trillion.
According to a summary of consolidated federal and provincial fiscal operation for July-June 2022-23 uploaded by the Finance Ministry on its website on Thursday, total revenue was of Rs9.633 trillion. Tax revenue was Rs7.818 trillion, of which federal tax collection was Rs7.169 trillion and provincial Rs649.559 billion. The provincial surplus was Rs154.585 billion.
Similarly, the previous government had claimed the primary deficit, defined by gap between income and expenditure other than interest payments, at 0.5pc of GDP, equivalent to Rs421bn in absolute numbers for FY23, but the latest official data showed the primary deficit was as wide as Rs690bn or 0.8pc of GDP.
Non-tax collection was Rs1.814 trillion with federal component of Rs1.648 trillion and provincial 165.876 billion.
Total expenditure was recorded at Rs16.154 trillion, current expenditure Rs14.583 trillion, of which, mark-up payments were Rs5.831 trillion, defence Rs1.585vtrillion, development expenditure and net lending Rs1.952 trillion, whereas, statistical discrepancy was recorded at Rs380.960 billion.
The overall budget deficit was Rs6.521 trillion and the primary deficit was Rs690.319 billion or 0.8 percent of the GDP.
Domestic net borrowing was Rs7.201 trillion to finance the budget deficit of Rs6.521 trillion as external net financing was negative by Rs679.848 billion. The government borrowed Rs3.528 trillion from banks and Rs3.672 trillion from non-bank sources to finance the budget deficit borrowing, whereas, external (net) borrowing was negative Rs679.848 billion.
