Sources in the Finance Ministry on condition of anonymity said that a significant shortfall is expected in both tax and non-tax revenue in the current fiscal year, which in turn would create serious fiscal constraints for the government. "Budget deficit may touch 5 per cent against budgeted 3.8 percent for the outgoing fiscal year," they added.
They also referred to non-tax revenue collection during the first half of the current fiscal year and stated that collection points towards conservable shortfall on non-tax revenue from mark-up of PSEs, dividends and GIDC collections.
The collection from mark-up of PSEs and others stood at Rs 8 billion during the first six months of the current fiscal year against budgeted Rs 81 billion, Rs 12 billion from dividends against Rs 85 billion and Rs 28 billion from GIDC against Rs 145 billion budgeted for the current fiscal year.
In view of very limited fiscal space, Finance Division is said to have indicated a 7 percent increase in development budget (Rs 700 billion) of ministries and divisions for the next fiscal year from Rs 655 billion for the current fiscal year, however, Ministry of Planning, Development and Reform, sources added, wants an increase of over 40 percent. The Ministry of Planning, Development and Reform wants the development budget of the federal government to be increased to Rs 950-1,000 billion for undertaking CPEC as well as other mega projects related to water sector. Sources added that Rs 20 billion are expected to be set aside for the development schemes of the parliamentarians for the next fiscal year.
Copyright Business Recorder, 2017