By Our Reporter
The budget deficit of the government has increased to Rs. 400 billion in the last fiscal year thanks to the significant fall in revenue collection.
In the last fiscal year, the government collected revenue of Rs. 957.15 billion, grants of Rs. 21.29 billion, and other receipts of Rs. 53.24 billion, and the total income reached Rs. 1,031.69 billion while expenditure reached Rs. 1,429.5 billion.
The statistics of the Financial Comptroller General Office under the Ministry of Finance showed that revenue collection of the government declined in fiscal year 2022–23 as compared to fiscal year 2021/22.
During the review period, capital expenditures have remained low despite the government introducing a fiscal budget in time.
The capital expenditure stands at only 61.44 per cent of the total allocation as of July 16, 2023.
Of the Rs. 380.38 billion allocated under the capital expenditure, only Rs. 233.69 billion has been spent as of July 16.
Of course, both revenue collection and capital expenditure of the government shrank in the fiscal year 2022/23.
The government has collected revenue of Rs. 957.15 billion during the last fiscal year 2022/23. Around Rs. 865.6 billion has been raised from the tax revenue and Rs. 91.5 billion from non-tax revenue during the review period.
The revenue collection is limited to 68.21 per cent of the annual target of Rs. 1,403.14 billion. The revenue collection is also less by 9.66 per cent (Rs. 102.38 billion) than the previous fiscal year.
The revenue of Rs. 1,059.53 billion was collected in the fiscal year 2021/22.
During the last fiscal year, around Rs. 21.2 billion had been received as grants and Rs. 53.2 billion as other receipts.
In the fiscal year 2021/22, the government received Rs. 18.18 billion as grants and other Rs. 48 billion as other receipts.
For the first time, revenue has fallen short to cover even the recurrent expenses this year.
Due to dependence on imports and the restriction measures imposed on imports to improve foreign currency reserves, revenue collection has been affected, said the Ministry of Finance.
Likewise, the recurrent expenditure of the government reached 85 per cent (Rs. 1005.75 billion) in the last fiscal year.
The government had allocated a budget of Rs. 1,183.2 billion under the recurrent expenditure in the last fiscal year.
The sluggish pace of work in the national pride projects as well as other projects has resulted in poor capital expenditure.
Earlier, after the revenue collection was inadequate to meet even recurrent expenditures, the Finance Ministry decided to cut the budget for the federal government.
Around 20 per cent of the budget approved for all ministries and agencies under different headings like fuel, repair works, printing and information publication, information system and software operating costs, travelling and other allowances and programme expenses have been cut.
During the last fiscal year, the government spent Rs. 190 billion (82.58 per cent) of the total allocation for principal and interest payments.
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