ISLAMABAD: The government has curtailed the budget deficit at 1.6 per cent of GDP, equivalent to Rs2.2 trillion, in the first quarter (July-September) period of the current fiscal year in line with the IMF’s envisaged target.
However, the primary balance was overperformed mainly because of the SBP profit, which stood at Rs2.428 trillion. The SBP profit was received in the first quarter of every fiscal year, so it helped the government to overperform on achieving the primary balance. The government has agreed with the IMF to achieve a primary balance of 1.6pc of GDP for the whole financial year without incorporating the profits of the SBP.
However, the debt servicing and defence outpaced the utilisation of development funding as the federal Public Sector Development Programme (PSDP) in the first three months of the current fiscal year.
According to fiscal operation for July-September period of FY26, released by Ministry of Finance on Friday, the total gross revenues stood at Rs6.2 trillion including federal and provincial revenues of Rs3.153 trillion and non-tax revenues of Rs3.04 trillion. The provincial share in shape of NFC transferred Rs1.775 trillion to the federating units so the Centre was left with net revenues of Rs4.117 trillion.
Now the expenditure of the government stood at Rs4.08 trillion out of which the debt servicing consumed Rs1.377 trillion and defence Rs0.447 trillion. The statistical discrepancy hovered at negative Rs0.256 trillion.
The overall budget deficit stood at Rs2.119 trillion, equivalent to 1.6pc of GDP. The primary balance was standing at Rs3.497 trillion or 2.7pc of GDP.