Budget deficit drops to 5.4% of the GDP during last FY, says report

The budget deficit during the financial year (FY) 2024-25 dropped from 6.8 per cent to the GDP’s 5.4 per cent, reported 24NewsHD TV channel.

According to the fiscal operation report, released by the Finance Ministry on Tuesday, the budget deficit during the FY under review remained Rs6,168 billion.

The report informs that the total income generated during the period was Rs17,997 billion, while the total expenditures stood at Rs24,165 billion.

The revenues generated from tax collection during the last FY remained Rs12,722 billion, says the report, adding that the FBR collected Rs11,744 billion in taxes. “Similarly, the provinces paid Rs978 billion in taxes during the last financial year.”    

The report informs that the non-tax income during the period under review was recorded at Rs5,274 billion.

The report informs that Rs8,887 billion were spent on the payment of interest; Rs2,193 billion were spent on defence, while Rs6,854 billion were transferred to the provinces under the head of NFC during the last financial year.

“Similarly, Rs1,513 billion were released in grants, while Rs1,297 were spent on subsidies,” reads the report.

The primary balance, the report goes on to say, during the aforementioned period stood at Rs2,719 billion.

Likewise, it informs that Rs910 billion were spent on pensions.  

Reporter: Waqas Azeem