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ISLAMABAD, Jun 9 (APP):The fiscal consolidation efforts initiated in fiscal year 2024 remained on track in FY 2025 for a second consecutive year, thus reinforcing fiscal discipline, according to Pakistan Economic Survey 2024-25 launched here for Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb .
According to the survey, the government achieved a fiscal surplus in quarter 1st FY2025, first time in 24 years, amounting to Rs 1,896 trillion (1.7% of GDP).
The survey says, fiscal balance is largely on an improving trajectory for the last three years; from a deficit of 3.8 percent of GDP in July–March FY2022, 3.7 percent in both July– March FY2023, and FY2024, to a significantly low fiscal deficit of 2.6 percent of GDP during July–March FY2025.
Primary balance is on an even larger positive trajectory; from a deficit of 0.7 percent of GDP in July–March FY2022; surplus of 0.6 percent in July–March FY2023, and surplus of 1.5 percent in July–March FY2024, to a record-high primary surplus of 3.0 percent of GDP in July–March FY2025.
According to survey, fiscal consolidation efforts continued in FY2025, strengthening discipline through higher revenues and more efficient spending.
Total expenditure grew by 19.4 percent to Rs 16,337.0 billion during July-March FY2025 (Rs 13,682.8 billion last year). Current expenditure increased by 18.3 percent to Rs 14,588.2 billion in July-March FY2025 (Rs 12,333.3 billion last year).
The Federal PSDP expenditure increased by 28.6 percent to Rs 413.6 billion (Rs 321.6 billion last year).
On the other hand, total revenues rose 36.7 percent to Rs 13,367.0 billion during July– March FY2025 (Rs 9,780.4 billion last year). Non-tax revenues surged 68.0 percent to Rs 4,229.7 billion (Rs 2,517.9 billion last year).
Total tax collection grew by 25.8 percent to Rs 9,137.3 billion during July–March FY2025 (Rs 7,262.5 billion last year). Both federal and provincial tax revenues improved significantly, supported by tax enhancing measures introduced under the Finance Act 2024.
FBR net provisional tax collection rose 25.9 percent to Rs 10,233.9 billion during July–May FY2025 (Rs 8,125.7 billion last year). During July–March FY2025, provinces collectively recorded a surplus of Rs 1,053.3 billion, significantly higher than Rs 435.4 billion in the previous year.
Fiscal performance remains encouraging, driven by ambitious reforms coordinated with provinces, vital for long-term sustainability and inclusive growth, it says.
According to the report, the global fiscal situation worsened in 2024, due to the lingering effects of high subsidies, social benefits, other current spending from the COVID-19 pandemic, and higher interest payments.
Consequently, the global fiscal deficit increased by 0.1 percentage points to an average of 5.0 percent of GDP in 2024, while the global public debt increased by 1 percentage point to 92.3 percent of GDP in the same period.