The matter has to be re-examined so that funds can be made available to the federation for other expenses as well. Photo: File
Islamabad: In the current financial year, the debt repayment expenses have reached the level of 3 thousand 18 billion rupees.
During the first 8 months of this financial year, the debt repayment expenses have reached the level of 3 thousand 18 billion rupees, which is more than the total income of the federal government. should be reviewed so that the federal government can have funds for other expenditures and avoid default.
Details of federal financial transactions also revealed a discrepancy of Rs 20 billion in the tax collection claimed by the FBR for July.
According to finance ministry sources, the FBR claimed a tax collection of Rs 4.493 trillion till February. After adjusting for discrepancies, the tax shortfall during the first eight months of the current financial year is Rs 232 billion.
The details of financial operations for the period July-February show that the interest expenditure during the first 8 months of the current financial year has increased significantly to Rs 3.18 trillion. The cost of payment increased by 70%.
Interest rates set by the central bank have nearly doubled to 20 percent over the past four years, significantly increasing the government’s debt-related costs, and further increases are expected as the International Monetary Fund (IMF) I am not completely satisfied with the recent increase.
Pakistan has informed the IMF that the cost of debt service spending in the current fiscal year could rise to around Rs 5.2 trillion, which is more than half of this year’s total budget of Rs 9.6 trillion, excluding defence. All other major expenditures showed negative growth in the first eight months.
Excluding military pension and armed forces development programme, defense spending in eight months was Rs 871 billion, which is Rs 117 billion or about 16 percent higher than the previous year. Total revenue rose to Rs 5.6 trillion. 2.48 trillion rupees of the federal tax share was transferred to the provinces.
With a net income of Rs 3.16 trillion, expenditure on debt servicing and defense exceeded Rs 4.05 trillion. Under the IMF program, Pakistan’s primary deficit, calculated excluding interest payments, DP was committed to turn it into a surplus of 0.2 percent, down from 3.6 percent in the previous fiscal year.
AGPR has confirmed tax collections of Rs 4.473 trillion against the FBR’s claim of Rs 4.493 trillion, sources said. Tax collection of Rs 4.473 trillion was 15 percent higher than the previous fiscal year, a ratio that is less than half of the current inflation rate and a testament to the FBR’s incompetence.