By Our Reporter
After the government failed to collect the targeted revenue even to manage the current expenditure, it has been continuously raising debts through Treasury Bills and Development Bonds.
According to the latest report of the Financial Comptroller’s General Office, as of Tuesday, the total government expenditure stands at Rs. 601 billion while the total revenue is Rs. 508 billion.
While the tax revenue is Rs. 454 billion, the recurrent expenditure is Rs. 456 billion and capital expenditure is Rs. 54 billion. When the tax revenue collected to date is less than the recurrent expenditure, the government has no option but to raise the debts.
To meet the expenditure, the government has collected Rs. 20 billion by issuing treasury bills and Rs. 113 billion through development bonds.
The current expenditure has been high because of federalism as the government has to pay the ministers, and assembly members and manage other costs for them. Had there not been provincial governments, the current expenditure would have been less. These provinces have been a white elephant; they generate no income but cause unnecessary expenditure.
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