ISLAMABAD: Ministry of Finance has issued clarification regarding an article appearing in a section of press, it is stated that during the 1st half of current financial year 2020-21, the Consolidated Primary Balance reflected a Surplus of Rs337 billion (0.7% of the GDP) whereas, the overall Fiscal Balance was restricted to -2.5% of the GDP against the annual target of 7.1%. Provincial surplus of Rs. 255 billion reflects healthy fiscal position of the provinces. The whole scenario transpires better fiscal management.
During the same period, 45% of FBR Revenue target fixed for the whole year was realized, despite economic slowdown due to resurgence of COVID-19.
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Unavoidable expenditures were incurred to mitigate the impact of COVID-19 and to help the vulnerable segments of society. However, debt servicing of huge domestic and external loans accumulated over the past one decade is the major fiscal challenge. Through better debt management efforts are being made to reduce the debt servicing cost.
With more revenue collection and controlled expenditures, the targets set for the whole financial year with regard to fiscal and primary balances will be met.
