LAHORE: The State Bank of Pakistan stated in third quarterly repost that Federal Board of Revenue (FBR) has collected 5.2 percent less revenue during July-March of financial year 2015.
The FBR tax collections grew by 12.7 percent during July-March of fiscal year 2015, which were well below the 17.9 percent growth recorded in same period of FY14, the SBP’s third quarterly report said.
The report added that unlike the revenue side, the government efforts to control spending supported fiscal consolidation. Overall expenditures grew by 8.3 percent during the said period against 8.7 percent in the same period FY14.
It is also encouraging to note that lower growth in expenditures was not at the expense of development spending, which grew by over 20 percent year on year basis during the review period.
According to the report, the financing of budget deficit indicates that the government did not resort to inflationary borrowing from SBP; instead, it retired a huge sum of Rs 674.4 billion (on cash basis) during Jul-Mar FY15.
