Ministry of Finance has said that the government was able to reduce the budget deficit by 0.9% of GDP (Rs 415 billion) in the first two months of the current fiscal year, up from 1.2% (Rs 499 billion) in the same period. The statement from Minstry also acknowledged Inflation as one of the main problems.
The ministry indicated in its October 2020 “Economic Outlook” monthly report that the primary balance (surplus of Rs 69 billion (0.2 percent of GDP between July and August 2021) remained in surplus as non-tax revenues rose. The Tax collection (Rs 156 billion) provided significant support in containing the budget deficit on the downside, while the collection of taxes on the FBR exceeded the target set for the September quarter of Fiscal Year 2020-21. Thus, the budget deficit was contained within the target set at First Quarter Encouraging Growth in Tax Revenues from FBR in the first quarter and the sharp rise in non-tax revenues are expected to continue to grow in the second quarter.
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