The country’s budget deficit surged by 54 percent to Rs 5.260 trillion during the fiscal year 2022 (FY22) from Rs. 3.403 trillion during the fiscal year 2021 (FY21) due to increased government spending and a decrease in income.
According to the latest figures compiled by the Ministry of Finance, the government has borrowed Rs. 4.08 trillion and Rs. 1.17 trillion from internal and external resources respectively to bridge the budget deficit.
In the case of internal financing, the government borrowed Rs. 3.1 trillion from the banking sector while the remaining amount was borrowed from the non-banking sector.
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The data further reveals that the primary budget deficit was recorded at Rs. 2.07 trillion during the last fiscal year owing to a subsidy on petroleum products and electricity.
The total government expenditure surged by 31 percent to Rs. 13.295 trillion during FY22. The current expenditure surged to Rs. 11.521 trillion. In the case of non-development expenditure, mark-up payments reached Rs. 3.2 trillion.
The development expenditure and net lending were calculated at Rs. 1.65 trillion, while the statistical discrepancy was figured out to be Rs. 116 billion during FY22.
On the income side, income tax revenue saw a substantial increase. However, non-tax revenue declined during the period. The total revenue increased from Rs. 6.903 trillion during FY21 to Rs. 8.035 trillion during FY22, according to the data.
The total tax revenue was recorded at Rs. 6.75 trillion during FY22. Out of total tax revenue, the federal government collected Rs. 6.143 trillion while provinces collected Rs. 612 billion.
The total non-tax revenue during FY22 stood at Rs. 1.28 trillion, a decline of Rs. 350 billion compared to FY21. Out of the total non-tax revenue, the federal government collected Rs. 1.15 trillion, while provinces collected Rs. 128 billion.
