ISLAMABAD (web desk) – Fiscal deficit of the country during the last year soared to Rs 1.863 trillion which was almost 5.8 percent of the gross domestic product, showing expenditures were on the highest side despite growth recorded in the revenue collection.
According to the figures posted on the website of the ministry of finance in relation to the outgoing fiscal year, the fiscal deficit during 2016-17 amounted to 1.863 trillion as compared to Rs 1.349 trillion of 2015-16.
The fiscal deficit was 5.8 percent of the GDP as compared to 4.6 percent, hence the government has failed to reduce the fiscal deficit. The government set a target of 4.2 percent fiscal deficit of GDP which has accelerated by a huge margin.
Defence spending also increased sharply by 17 percent to Rs 888 billion as compared to Rs 758 billion of the preceding year. The defence expenses were recorded around 2.8 percent of the GDP.
Similarly, the payments on foreign loans and principal loans touched Rs 1.348 trillion during 2016-17 as compared to Rs 1.263 trillion.
Interest and principal payments on foreign loans were nearly 4.2 percent of the GDP.
The revenue collection during the outgoing year was around Rs 3.647 trillion, if we add up the major head of expenses like mark up and principal amount of foreign loans and defense expenditure, nearly 61 percent consumed on both these heads, said an analyst.