Debt servicing consumes 80pc more than defence, uplift spending

ISLAMABAD: Debt servicing on domestic and external loans has consumed almost 80 percent more than joint spending on defence and development during the first quarter (July-Sept) of the current fiscal year.

According to fiscal operation released by Finance Division on Saturday, the budget deficit stood at Rs286.023 billion equivalent to 0.7 percent of Gross Domestic Product (GDP) during the first quarter of the current fiscal. The total fetched revenue was standing at Rs1.489 trillion while booked expenditures were Rs1.776 trillion so the fiscal deficit was hovering in the range of Rs286 billion. The deficit financing was reduced through improved collection in shape of non-tax revenue.

Debt servicing consumed the major chunk as it stood at Rs571.684 billion while defence spending was standing at Rs242.63 billion. The development spending was standing at Rs147 billion. The statistical discrepancy stood at Rs47 billion in first three months of the current fiscal. The primary deficit stood at surplus 0.6 percent of GDP.