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The fiscal deficit has climbed to 1.5 percent of GDP (Rs1,266 billion) during the July–October fiscal year 2023 from 0.9 percent of GDP (Rs587 billion) for the same period the previous year due to an increase in current spending for debt servicing.
According to the monthly economic outlook and update for December 2022 released by the Finance Ministry, on Friday, the primary deficit posted a surplus of Rs136 billion (0.2 per cent of GDP) against the surplus of Rs206 billion (0.3 per cent of GDP) last year. Higher current expenditure during the first four months of the ongoing fiscal year on the back of higher mark-up payments led to an increase in the fiscal deficit. Additional spending due to flood-related activities may put further pressure on expenditure.
Comparing July to October of 2023 to the same time in the previous year, total spending grew by 26.1% to Rs2,737 billion. Spending on the Public Sector Development Program (PSDP) during the period of July to October 2023 was Rs98 billion, compared to Rs207 billion the year prior.
Tax revenue collected by the Federal Board of Revenue increased from Rs2,319 billion for the same period previous year to Rs2,688 billion in July–November 2022–23, a 15.9% increase.
From July through November 2022-2023, foreign direct investment (FDI) decreased by 51.4% to $ 430.1 million from $884.9 million during the same period the previous fiscal year.
Workers’ remittances in July-November 2022-2023, decline to $12.0 billion from $13.3 billion last year), showing a decrease by 9.6 per cent. exports decreased by two per cent to $12.1 billion from $12.3 billion and imports 16.2 per cent to $ 24.9 billion from $29.7 billion.
