The Finance
Division spokesman on Friday dismissed
contentions of an article/analysis “A ticking economic bomb” carried by a
section of media on October 30, saying that the writer’s claim on data
manipulation is baseless. The present government believes in complete
transparency and has all along been sharing the data in the areas of economic
growth, revenues, expenditures, budget deficit, debt and external accounts with
its development partners and other financial institutions. All the data is
regularly posted on their respective websites.
The spokesman
went on to say:
With regard
to fiscal deficit, it is stated that fiscal sector of the economy
has witnessed a notable improvement on account of contained expenditures and
increased revenues. When the present government came into power, fiscal
deficit was 8.2 percent of GDP which has been reduced to 5.8 percent of GDP
during 2016-17 and for the 2017-18 it has been budgeted at 4.1 percent of GDP.
Based on available provisional numbers, fiscal outcome for Q1 is very
encouraging. The achievements of the present government on fiscal side are
given as under:-
· Total
revenue to GDP ratio during the year 2012-13 was 13.3 percent of GDP which has
been increased to 15.5 percent of GDP during 2016-17.
· Overall
tax collection grew from 9.8 percent of GDP in 2012-13 to 12.5 percent of GDP
during 2016-17.
· FBR
tax collection in 2012-13 was 8.7 percent of GDP which has been increased to
10.5 percent of GDP during 2016-17.
· Total
expenditure was 21 percent of GDP in 2012-13 which are more or less at the same
level.
· Federal
PSDP was 1.4 percent of GDP (Rs.323 billion) in 2012-13, during 2016-17 it was
at 2.3 percent of GDP (Rs.725 billion).
· Social
safety spending (BISP) has also been increased considerably from Rs.40 billion
to Rs.112 billion in 2016-17.
· Defence
spending for the year 2012-13 were 2.4 percent of GDP (Rs.541 billion) while
during 2016-17 it was 2.8 percent of GDP (Rs.888 billion).
· During
the year 2012-13 there was no allocation for TDPs and Security Enhancement
while during the present government regime an amount of Rs.100 billion is being
budgeted (.0.3 percent of GDP) on annual basis.
From the
above facts it can safely be concluded that tax revenue including FBR
collection has significantly improved while total expenditures are at the same
level. But expenditures on account of PSDP, TDPs, Security Enhancement, BISP
and Defence Spending have significantly been increased. Therefore,
writer’s assertion is not correct.
With regard
to the claims of not including Rs.400 billion circular debt in budget deficit,
it is to mention that budget deficit is worked out based on internationally
recognized accounting principles and later data is shared with development
partners. The power sector payables or receivables and financial liabilities of
PSEs are not a direct charge on the federal consolidated fund and are
accordingly not accounted for while calculating the budget deficit number.
With regard
to total debt, it is to mention that total debt of the government stood at
Rs.19.6 trillion at end June 2017, as opposed to Rs.22.2 trillion as claimed by
the writer.
Further
fiscal and debt policy statements are laid before the National Assembly by the
end of January each year in accordance with (FRDL) Act. Giving a statement that
fiscal and debt policy statements were not announced by June 30 this year is
totally incorrect and lacks understanding on writer’s part.
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