Fiscal deficit is increasing as the government’s revenue collection is lower than its expenditure.
According to the Financial Comptroller General’s Office (FCGO), the government’s expenditure is Rs 250 billion more than its income as of mid-May of the current fiscal year 2022/23. During this period, while the government expenditure stands at Rs 1.047 trillion, the revenue collection and grant receipt is only equal to Rs 797 billion.
According to the FCGO, the government has spent 58.41 percent of the annual budget in 10 months. The government had brought a budget equal to Rs 1.7093 trillion for the current financial year. Out of which Rs 1.047 trillion has been spent so far.
By mid-May, the government’s current expenditure was 66.49 percent, capital expenditure 33.04 percent and expenditure towards fiscal management was 58.79 percent.
For the current fiscal year, a budget equal to Rs 1.183 trillion has been brought under the heading of recurrent expenditure, and so far Rs 786 billion has been spent. In the same way, the development budget equal to Rs 380 billion has been allocated for the current fiscal year, but only Rs 125 billion has been spent in 10 months.
Looking at the state of budget expenditure during this period, the budget expenditure towards financial arrangement is more than the capital expenditure. By the mid of May, Rs 135 billion had been spent on fiscal management. Expenditure under the heading of financial arrangements is mainly spent on principal and interest of government loans.
By mid-May, government revenue collection is equal to 54.66 percent of the annual target. For the current financial year, the government, which aims to collect internal revenue equal to Rs 1.403 trillion, has so far collected only Rs 756 billion.
Similarly, for the current financial year, while the government has a target of receiving foreign grant /subsidies worth Rs 55.45 billion, by the mid of May, only 8.66 percent of the target, i.e. Rs 4.80 billion has been received.
Income tax and value added tax have decreased during the same period of this year compared to the mid of May last year, while excise duty collection has increased.
Income tax equal to Rs 159 billion has been collected till the mid of May of the current financial year. In the same period of the last financial year, income tax equal to Rs 173 billion was collected.
Similarly, VAT has also been reduced compared to last year. By the mid of May last year, Rs 90.68 billion VAT was collected, while in the same period of the current financial year, Rs 88.67 billion was recovered.
Excise duty has increased slightly compared to last year. By the mid of May, excise duty equal to Rs 84.11 billion has been collected. During the same period last year, the excise duty was equal to Rs 83.88 billion.
