The mark up payment increased by Rs 400 billion from the projected target of Rs 1620 billion for last fiscal year with debt servicing of Rs 2091 billion due to heavier than ever reliance on borrowing. Defence expenditure increased to Rs 1146.7 billion against the target of Rs 1100 billion, showing Rs 46 billion rise.
Total public sector development programme (PSDP) releases were recorded at Rs 1008 billion which included federal spending of Rs 502 billion net and provincial spending of Rs 506 billion whereas other development expenditure accounted for Rs 170 billion during the period under review.
Total tax revenue was projected at Rs 4.88 trillion in the budget for last fiscal year while Rs 4.47 trillion was collected - Rs 4071 billion by federal government and Rs 401 billion by provincial governments. Non tax revenue fell short of target by Rs 210 billion as total non tax revenue was Rs 427 billion against the budgetary target of Rs 637 billion. Shortfall in non-tax was due to massive decline in profit of State Bank of Pakistan (SBP) against projected target.
In non-tax revenue, the revenue on account of mark up (provinces) was Rs 22.9 billion, markup of PSE and other was Rs 35.7 billion, dividend remained Rs 60.202 billion against the target of Rs 76.4 billion and surplus profit of SBP was Rs 12.5 billion against Rs 280 billion projected in the budget.
Direct tax collection stood at Rs 1,445 billion while indirect taxes remained Rs 2,383 billion.
The budget deficit was financed by Rs 3,028 billion borrowing including Rs 2,263 billion from domestic banking sector as well as Rs 764 billion from non- banking sector, while external financing stood at Rs 416 billion. Development expenditure and net lending during the last fiscal year remained at Rs 1,219 billion.
The provinces created a surplus of Rs 138 billion in the last fiscal year - Punjab, Rs 48.8 billion; Sindh, Rs 55.6 billion; Khyber Pakhtunkhwa, Rs 17.1 billion; and Balochistan, Rs 17.3 billion.
The provincial tax collection was recorded at Rs 401 billion which included Rs 202 billion from general sales tax on services - Rs 90 billion was collected by Punjab, Rs 93 billion by Sindh, Rs 10 billion by Khyber Pakhtunkhwa and Rs 8 billion by Balochistan.
The provincial governments collected Rs 7.02 billion property taxes, Rs 9 billion on account of excise duties, Rs 70 billion from stamp duties, Rs 24 billion motor tax and Rs 83.3 billion from others accounts.-ZAHEER ABBASI
Reuters adds: Pakistan's budget deficit widened to 8.9% of gross domestic product in the financial year that ended in June, according to data on Tuesday that underlines the severe economic crisis facing the country.
The deficit size compared with a 7.1% estimate Prime Minister Imran Khan's government gave in June and with 6.6% during the year that ended in June 2018.
Pakistan, which in July sealed a $6 billion loan agreement with the International Monetary Fund, has been struggling to avert a balance of payments crisis and to prevent its debt from spiralling out of control.
The full-year's deficit figure was released on the finance ministry website. Revenue during the year ended June 30 equalled 12.7% of GDP, a fall from the previous financial year's 15.2%.
The figures showed government expenditure at 21.6% of GDP in the latest financial year, compared with 21.8% a year earlier. Pakistan has a notoriously narrow tax base, with fewer than 1% of its 208 million people filing income tax returns. There is a vast informal economy and several key sectors of the official economy are largely exempt from tax.
The budget for 2019-20, passed in June, approved measures designed to cut the deficit by bringing in o government coffers the equivalent of 1.7% of GDP. Pakistan has promised a multiyear effort to overhaul its tax and budget system to put its weak public finances on a firmer footing.