Budget Deficit Swells to Rs. 2.5 Trillion in 9 Months

Budget Deficit Swells to Rs. 2.5 Trillion in 9 Months 2022

The budget deficit increased to Rs. 2.5 trillion during the first nine months of the current fiscal year due to various slippages, including unbudgeted high subsidies and debt servicing, when compared to the same period the previous fiscal year.

According to preliminary estimates, the budget deficit in the first nine months of the current fiscal year has risen to Rs. 2.5 trillion, according to Ministry of Finance sources.

During the same period last fiscal year, the budget deficit was Rs. 1.652 trillion. The budget deficit is expected to reach the highest level of Rs. 5.5 trillion by the end of June 2022, up from the original estimate of Rs. 3.9 trillion.

Earlier this week, Pakistan Muslim League-Nawaz (PML-N) leader and former finance minister Miftah Ismail claimed at a press conference that Pakistan’s budget deficit would likely reach a record high of Rs. 5.6 trillion by the end of the current fiscal year.

According to the sources, the subsidy on petroleum products and cheaper electricity have put pressure on the current fiscal year’s budget deficit. According to official estimates, the government faces a monthly revenue loss of Rs. 70 billion in order to maintain petroleum prices.

According to the sources, the government borrowed from both internal and external sources to bridge the fiscal deficit during the first nine months of the current fiscal year.

During the same period last fiscal year, the budget deficit was Rs. 1.652 trillion. The budget deficit is expected to reach the highest level of Rs. 5.5 trillion by the end of June 2022, up from the original estimate of Rs. 3.9 trillion.

Earlier this week, Pakistan Muslim League-Nawaz (PML-N) leader and former finance minister Miftah Ismail claimed at a press conference that Pakistan’s budget deficit would likely reach a record high of Rs. 5.6 trillion by the end of the current fiscal year.

According to the sources, the subsidy on petroleum products and cheaper electricity have put pressure on the current fiscal year’s budget deficit. According to official estimates, the government faces a monthly revenue loss of Rs. 70 billion in order to maintain petroleum prices.

According to the sources, the government borrowed from both internal and external sources to bridge the fiscal deficit during the first nine months of the current fiscal year.

During the first nine months of the current fiscal year, the government net borrowed Rs. 895.6 billion from local banks via various security papers for budgetary support.

The government has kept its end of the bargain with the IMF by not borrowing directly from the State Bank of Pakistan during the period. The government did not take any new loans during the current fiscal year, but it did retire debt to the State Bank of Pakistan totaling Rs. 104 billion during the first nine months of the year.

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