Govt faces massive budget surplus of Rs343.5b in first 9 months of FY

[CrazyZ]

Govt faces massive budget surplus of Rs343.5b in first 9 months of FY
Non utilisation of budget by provinces Govt restricts budget deficit at Rs1.686tr in July-March period of FY20Provincial govts received Rs1.931tr from federal govt under NFC
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Imran Ali Kundi

May 08, 2020


ISLAMABAD - The four provinces had not utilised their budgets that resulted in a massive budget surplus of Rs343.5 billion to the Centre during first nine months (July-December) of the ongoing financial year (FY20).

The provincial expenditures registered at Rs2.123 trillion as compared to the revenues of Rs2.467 trillion in nine months of the FY20, showing budget surplus of Rs343.5 billion, according to the latest data of ministry of finance. The massive surplus budget helped the federal government in restricting budget deficit at Rs1.686 trillion (3.8 percent of the GDP) in July-March period of FY20.

The provincial governments’ surplus budget showed that they had not utilised their budgets on development activities in the provinces. The provinces could use the revenues in development projects, which would help in generating economic activities and employment generation. The provinces received major portion of their revenues from the federal government under the National Finance Commission (NFC) award.



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Provincial governments had received Rs1.931 trillion from the federal government under the NFC in July-March period of the year 2019-20. Meanwhile, four provinces had collected taxes of only Rs321.2 billion making the total revenues of the provinces at Rs2.467 trillion. On the other hand, provinces had spent Rs2.123 trillion and returned Rs343.5 billion to the federal government to restrict its budget deficit.

Under the 7th NFC award, the federal government is bound to transfer 57.5 percent of the resources to the four provinces. The provincial governments get shares from the federal government under NFC award as per the said formula. Punjab gets 51.74 percent, Sindh 24.55 percent, Khyber-Pakhtunkhwa 14.62pc and Balochistan 9.09 percent.

Punjab

Punjab province had recorded budget surplus of Rs89.3 billion during July-March period of the ongoing fiscal year. The expenditures registered at Rs1.032 trillion as compared to the revenues of Rs1.122 trillion. However, the major chunk of the revenues came from the federal government under divisible pool. The Punjab government had received Rs922.2 billion from the federal government during first nine months of the current fiscal year. Meanwhile, the province had generated only Rs153 billion from its own sources.



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Sindh

The province had shown budget surplus of Rs74.95 billion in nine months period, as it expenditures recorded at Rs569.74 billion compared to the revenues of Rs644.69 billion. Sindh government has received Rs476.02 billion from the federal government during July to March period of the year 2019-20. The Sindh government collected Rs136.9 billion during first nine months of the year 2019-20.

Khyber-Pakhtunkhwa

The KP’s budget surplus had recorded at Rs115.9 billion. Expenditures of this province had registered at Rs334.8 billion as compared to the revenues of Rs450.8 billion. The KP’s tax collection had recorded at Rs18.95 billion in first half of the last year. The province has received Rs312.97 billion from the federal government under NFC during first nine months of the current fiscal year.

Balochistan

This province had also recorded budget surplus of Rs63.35 billion. Balochistan expenditures had remained at Rs186.88 billion as compared to the revenues of Rs250.23 billion. Balochistan’s tax collection had recorded at Rs12.3 billion. Balochistan had received Rs220.4 billion from the federal government under the NFC award.

https://nation.com.pk/08-May-2020/g...t-surplus-of-rs343-5b-in-first-9-months-of-fy

 

[TNT]

Shows provincial govts are incompetent. I have seen how they waste money in order utilize funds. So sad our country is run by morons.

 

[Syed1.]

We need a new constitution and a new social contract between the people and the government. This one has flopped like no tomorrow. Sadly no government will ever be powerful enough to take such a step and we will continue meandering along on this path that leads to a dead end.

 

[alphapak]

Pakistan needs to make a financial action plan and get the looted
money out of corrupt politicians. Something like the Saudi model is
needed as soon as possible.

 

[Bilal Khan (Quwa)]

We need a new constitution and a new social contract between the people and the government. This one has flopped like no tomorrow. Sadly no government will ever be powerful enough to take such a step and we will continue meandering along on this path that leads to a dead end.

...in other words, we need someone with enough power who'll disregard the rules of the unfair game, and create a new set of rules while excluding all of the old players.

 

[Samlee]

If Were Not Going To Use This Money Why Not Repay Expensive Debts Then????

 

[CrazyZ]

This is not a bad thing. Normally I would say the surplus should be used to reduce the debt to GDP ratio but right now with the corona virus shutdown it should be spent to stimulate economic growth.

 

[The Accountant]

...in other words, we need someone with enough power who'll disregard the rules of the unfair game, and create a new set of rules while excluding all of the old players.

The biggest player is establishment. It can be destabilizing as well as the same powerful entity can miss use it.

The best way is to keep moving towards steadily.

This is the era of realization and soonee or later corrupt mafia is going to be filter out. It will take atleast a couple of decade

 

[volatile]

Those who cry new constitution ,18th amendment and NFC should realize that same were there back in 2014 to 2017 and nation was progressing ,Alhumdulilah our test tube experiment of creating PTI govt has back fired once again and now we are crying over this again .IK and his team is so in competent if they are given Saudi Oil reserves to run the country they will start to blame on Arabian crude for their in competencies

 

[The Accountant]

Those who cry new constitution ,18th amendment and NFC should realize that same were there back in 2014 to 2017 and nation was progressing ,Alhumdulilah our test tube experiment of creating PTI govt has back fired once again and now we are crying over this again .IK and his team is so in competent if they are given Saudi Oil reserves to run the country they will start to blame on Arabian crude for their in competencies

Excuse me nation was progressing. R u for real ? Have u ever checked the stats ?

Our exports declined for the first time.
Our external account deficit went from 2 billion dollars to 19 billion dollars.
Our reserves gone from 23 billion to 14 billion dollars.
On diplomatic front GCC were angry with us.
We had worst relationship with US.
Textile industry continued to migrate to bangladesh.
Health industry sucks and ur beloved PMLN leader has to go outside Pakistan for his treatment.
On education front we do not have any university in top 1000s.

I am tired of people who speaks without facts.

 

[Hakikat ve Hikmet]

...in other words, we need someone with enough power who'll disregard the rules of the unfair game, and create a new set of rules while excluding all of the old players.

In essence, you need an Erdo'an....

 

[The Accountant]

In essence, you need an Erdo'an....

We already have imran but he need time.

 

[RIP Pak LAW]

Hail 18th ammendment hail provinces incompetency

 

[volatile]

Excuse me nation was progressing. R u for real ? Have u ever checked the stats ?

Our exports declined for the first time.
Our external account deficit went from 2 billion dollars to 19 billion dollars.
Our reserves gone from 23 billion to 14 billion dollars.
On diplomatic front GCC were angry with us.
We had worst relationship with US.
Textile industry continued to migrate to bangladesh.
Health industry sucks and ur beloved PMLN leader has to go outside Pakistan for his treatment.
On education front we do not have any university in top 1000s.

I am tired of people who speaks without facts.

its more of your word against mine .

Our exports started to rise in 2017 to 2018 with increase of 13% after Govt gave tax relief to exporters
our external account deficit was high due to power plants and infrastructure ramping up .
Reserves were 18 Billion when PTI govt took over
GCC was angry over Gawadar and KSA over Yemen
US was angry due to CPEC and China centricity
Textile industry data will really make your case strong but any way Bangladesh is textile heaven with cheap and productive labour .
In punjab alone there were closed to 49 new hospitals built where as in KPK there is no new dispensary built .

Now comes to stats .
Avg GDP growth was 5 %
Inflation was 4 %
India was checked and never dared for any misadventure
China was supporting in every way possible .

 

[RIP Pak LAW]

The massive surplus budget helped the federal government in restricting budget deficit at Rs1.686 trillion (3.8 percent of the GDP) in July-March period of FY20.

No that means provinces failed to utilise this money for social welfare that is health care, education and various infrastructure projects. Same incompetent will be done in coming fiscal year as well.