ISLAMABAD: Failure in achievement of tax target has caused increase in the country’s budget deficit by 1.1 per cent of the GDP to Rs328.2 billion during the first quarter of the ongoing financial year due to the government’s failure in achieving tax collection target.
According to the latest data released by the Ministry of Finance, the country’s expenditures stood at Rs1,265.2 billion against the revenues of Rs937 billion during July-September. The government spent Rs145.6 billion on defence, Rs415.9 billion on interest payment, Rs42.5 billion on pension payment, Rs21.8 billion on public order and safety affairs, Rs14.3 billion on education, Rs2.2 billion on health, Rs1.5 billion on recreation culture and religion and Rs146.4 billion on Public Sector Development Programme (PSDP).
The Federal Board of Revenue (FBR) had missed the first quarter’s target by Rs40 billion, as it collected Rs600 billion against the target of Rs640 billion. The government had missed the International Monetary Fund’s target for restricting budget deficit at Rs305 billion during July-September due to the shortfall in taxes.
The country had generated revenues worth Rs937 billion during first three months of the ongoing financial year. The government had collected Rs723.5 billion as taxes and Rs213.5 billion as non-tax revenues.
