The Finance Division has analyzed and revealed various risk factors including a major shortfall in tax revenue, unpredicted volatility in the exchange rate, circular debt in the energy sector, and financing of fiscal deficit in achieving fiscal sustainability, which can lead to the compromised results.
The mid-year budget review report for the current fascial year 2019-2020 has been submitted to the National Assembly which showcases the comparison of budgeted and actual revenues, expenditure and financing for the year 2020. Finance Division indicated certain risks and challenges for the remaining half of the current fascial year.
Overall analysis specified that the FBR revenue target for the fiscal year 2019-2020 was a very challenging and all-time high, keeping in view the previous year’s allocations and actual collections.
The federal fiscal deficit target is estimated to be 7.1 % of the GDP for the financial year 2019-2020. A noteworthy growth in revenue of current expenditure has helped restrict the fiscal deficit to 2.35 of the GDP compared to 2.7% in 2019.
Total public debt was recorded at Rs 33,707 billion at end of December 2019, compared with Rs 32,708 billion at end of June 2019, registering an increase of three percent during the first six months of 2019-2020.
Out of total financing of Rs1, 567 billion raised during the first half, Rs21 billion were raised in the form of external grants, Rs494 billion were raised in the external debt and remaining Rs1, 053 billion were raised in the form of domestic debt.
Despite of the increased external financing needs, the external debt operations are under control. During the current financial year, $11.6 billion is due on account of repayments of external debt obtained in the past.
Substantial increase of 16% in the FBR tax revenues was witnessed taking them to Rs.2093 billion.
