Fiscal deficit reduced to 3.4 % of GDP during current year


ISLAMABAD, Jun 2 (APP): Thanks to continuous efforts to ensure fiscal discipline, the government has successfully reduced fiscal deficit to 3.4 percent of GDP during first nine months of current Fiscal Year against 3.8 percent of GDP during comparable period of last year.
The improvement in fiscal accounts came from 10.4 percent growth in total revenues, of which tax revenues increased by 20.2 percent, an Economic Survey for 2015-16 announced by Minister for Finance and Revenue, Senator Ishaq Dar at a press conference revealed here on Thursday.
Moreover, the survey said a healthy provincial surplus of Rs.221.2 billion has also contributed in containment of fiscal deficit at 3.4 percent of Gross Domestic Product (GDP).
It said for the current fiscal year, a fiscal deficit target has been set at 4.3 percent which will be further brought down to 3.5 percent of GDP by FY 2018.
According to the consolidated revenue and expenditure statement, total revenue witnessed a growth of 10.4 percent and stood at Rs. 2,961.9 billion during July-March, 2015-16 against Rs.2,682.6 billion in same period of last year.
In total revenues, total tax collection reached at Rs.2,481 billion during first nine months of current fiscal year from Rs.2,063.2 billion recorded in same period of FY 2016, thus registered a growth of 20.2 percent. This significant growth is largely attributed to a considerable rise in provincial tax revenues which has registered a growth of 28.6 percent during the period under review.
On the other hand federal tax revenues posted a growth of 19.6 percent, of which FBR tax collections grew at 18.5 percent.
During July-March, FY 2016 FBR tax collection stood at Rs.2,103 billion against Rs.1,775.1 billion in comparable period of last fiscal year.
While as a percentage of GDP, it stood at 7.1 percent during July-March, FY-2016 against 6.5 percent in same period of last year.