Finance Minister, Senator Mohammad Ishaq Dar chaired a meeting at
the Ministry of Finance on Monday to review
fiscal out turns of the first quarter (July to September) of current fiscal
year. Finance Secretary presented provisional data on fiscal operations during
the meeting, and stated that the first quarter has closed on strong fiscal
performance.
Finance Secretary stated that as per the provisional data, the FBR tax
collections remained robust. Total collections of Rs.765 billion during
July-September 2017 demonstrated growth of over 20% as compared to collections
in the first quarter of last year. Because of higher tax collections, the
amounts transferred to the provinces also increased substantially. As compared
to transfers of Rs.416 billion last year this year the total transfers have so
far reached Rs.570 billion, including arrears.
The meeting was informed that on the expenditure side, the Federal Government
maintained strict fiscal discipline. As against total expenditure of Rs.914
billion in first quarter last year, the Federal Government spent Rs.894 billion
in the first quarter this year. This was despite the fact that increased
investments were carried out through the development budget.
The overall budget deficit was recorded at Rs.324 billion in the first quarter
this year as compared to Rs.438 billion in the same period last year. This was
made possible through robust tax collections and lower expenditure. In terms of
GDP, the overall deficit decreased to 0.9% in the first quarter of current
financial year as compared to 1.3% recorded in the first quarter of last year.
Reduced fiscal deficit means lower public debt accumulation which supports
alignment to targets defined in the amended Fiscal Responsibility and Debt
Limitations Act.
The Finance Minister expressed satisfaction with the growth in revenue
collections by the FBR and appreciated the measures taken to achieve fiscal
prudence in the first quarter. The Finance Minister reiterated the government’s
resolve of continuation on the path of fiscal discipline. He directed officials
to ensure achievement of fiscal targets in the remaining three quarters of the
current fiscal year.
While commending inflation containment, low interest rates, positive and strong
growth in large-scale manufacturing, recent increase in exports and
remittances, the Finance Minister stressed on the need to maintain focus on
acceleration of economic growth for continued reduction in unemployment and
poverty.
Senior officials of the Ministry of Finance attended the meeting.
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