ISLAMABAD: According to a report by the finance ministry submitted to the federal cabinet, the budget deficit is expected to touch the all-time high of Rs4.3 trillion, thereby missing the government’s target by Rs318 billion.
The increasing budget deficit has been attributed to surging international and domestic loans. The Mid-Year Budget Review Report stated that the deficit was hiking despite imposing a mini-budget of Rs360 billion, higher tax collection by the Federal Board of Revenue (FBR), and deducting Rs200 billion from the federal development budget.
The report also highlighted that this year’s expenditures are expected to rise because of Covid-19 bills, energy subsidies, interest payments, civil government operations and expenses on social safety. The current spending will touch Rs7.7 trillion instead of the budgeted Rs7.5 trillion.