ISLAMABAD
\nWith the collection of petroleum and climate levy exceeding Rs1.478 trillion, the government has been able to restrict its federal budget deficit to Rs3.34 trillion, equivalent to 2.6% of Gross Domestic Product (GDP), in the first 11 months (July-May) of FY 2025-26. In the wake of a revenue surplus of Rs1.31tr generated by the provinces in the first 11 months of FY 2025-26 \u2014 in line with the IMF agreement \u2014 the overall fiscal deficit was curtailed to Rs2.03tr, or 1.6%of GDP, during this period.
\nFor the whole fiscal year, the government had envisaged keeping the overall deficit at 3% of GDP (Rs3.77tr) in accordance with the revised estimates for the last fiscal year, against the initially envisaged target of 3.9% of GDP (an absolute figure of Rs5.03tr). The Ministry of Finance has not yet released the reconciled figures of fiscal operations for the whole fiscal year 2025-26, which ended on June 30, 2026, as the final figures will be worked out in the coming weeks.
\nHowever, official data for the first 11 months of FY 2025-26 showed that three heads of non-tax revenue \u2014 including State Bank of Pakistan (SBP) profits, petroleum levy, and climate support levy \u2014 helped the government fetch Rs4.82tr in the first 11 months, against the overall target of Rs5.14tr for the whole fiscal year. The SBP\u2019s surplus profit stood at Rs2.428tr, the petroleum levy at Rs1.432tr and the climate levy at Rs45.968 billion in the first 11 months of the last fiscal year.
\nThe FBR\u2019s collection stood at Rs11.228tr in the July-May period of FY 2025-26, so gross federal revenue receipts stood at Rs16.08tr. After transferring Rs6.6tr to provinces through the NFC Award, grants and subventions, net federal revenue receipts were left at Rs9.38tr in the first 11 months of the last financial year. Total expenditures were booked at Rs12.73tr in the first 11 months of the last fiscal year, out of which current expenditures consumed the major chunk of Rs12.15tr.
\nAmong current expenditures of Rs12.15tr, the largest head was mark-up payment on domestic and foreign loans, which consumed Rs6.163tr alone \u2014 indicating that more than 50%of current expenditure was consumed by this single largest item. The remaining major expenditure heads included defence and others, with defence spending standing at Rs2.11tr, and all other heads \u2014 including pay, pensions, subsidies, running of civil administration, and others \u2014 consuming Rs3.879tr in the first 11 months of FY 2025-26. \u2014 DNA<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD With the collection of petroleum and climate levy exceeding Rs1.478 trillion, the government has been able to restrict its federal budget deficit to Rs3.34 trillion, equivalent to 2.6% of Gross Domestic Product (GDP), in the first 11 months (July-May) of FY 2025-26. In the wake of a revenue surplus of Rs1.31tr generated by the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-557262","post","type-post","status-publish","format-standard","category-business"],"yoast_head":"\n