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ISLAMABAD: The provincial governments, aside from Punjab, have generated a revenue surplus of Rs86 billion in first quarter of the current fiscal year, helping the center to curtail the consolidated budget deficit at 1.2 percent of Gross Domestic Product (GDP), official sources report.
The Punjab government cleared its overdraft and also provided double salary on Eid that restricted the ability of the province to ensure revenue surplus, said a Punjab government official. However, the PML-N led government also complained that the center did not release due funds under the seventh NFC Award which could enable the government to throw revenue surplus by the end of the first quarter of the ongoing financial year, said the official.
Interestingly, the revenue surplus generated by provinces in the first quarter of FY13 was 20 times more than that collected in the same period of the previous financial year. For FY13, the government expects to achieve a revenue surplus of Rs80 billion but just in the first three months its revenue surplus has touched Rs86 billion compared to four billion rupees in the same period of the previous financial year.
However, experts on the fiscal side fear that this revenue surplus will disappear in the second and third quarter of the current fiscal year when the country will be heading towards general elections and will witness significant spending.
According to a summary of the provincial fiscal operation, prepared by the federal finance ministry, major sources of revenues for the provinces were transfers of money from the federal government.
The center provided Rs278 billion to four provinces in the form of the Federal Divisible Pool (FDP) under the seventh NFC Award and other heads in the first quarter of the current financial against Rs211 billion in the same period last year. The center released Rs14 billion in the first three months of the current financial year in the form of grants against Rs16 billion released last year.
The Center provided net lending to the provinces to the tune of Rs10 billion in the first quarter of FY13 against three billion rupees in the same period of the last financial year, the fiscal operation stated.
The gross revenues of all provinces stood at Rs332 billion in the first quarter of the current fiscal year compared to Rs268 billion in the same period last year, registering an increase by Rs64 billion.
Against an envisaged target of Rs80 billion in taxes in FY13, four provinces generated Rs18 billion in the first quarter of the current financial year compared to Rs19 billion in the same period of the last financial year.
The collection of non tax revenues declined in provinces as these stood at Rs12 billion during the first three months. Moreover, total expenditures of all provinces were Rs246 billion in the first quarter of the current fiscal year compared to Rs264 billion for the same period last year, registering a decrease in expenditures by Rs18 billion.
The provinces had estimated that overall expenditures would be Rs1,641 billion for FY13. Of total expenditures, the current expenditures of the provinces stood at Rs230 billion in the first quarter of the current financial year against Rs224 billion in the same period of the last financial year.
The provincial governments had budgeted to spend Rs513 billion on development projects in the current fiscal year out of which the federating units utilised Rs16 billion in the first quarter of FY13 against Rs32 billion in the previous year.
The federal government did not disclose the figure of statistical discrepancy for the first quarter of the current fiscal year but it stood at eight billion rupees in the same period of the previous year.
Provincial govts generate surplus revenue of Rs86bn - thenews.com.pk
The Punjab government cleared its overdraft and also provided double salary on Eid that restricted the ability of the province to ensure revenue surplus, said a Punjab government official. However, the PML-N led government also complained that the center did not release due funds under the seventh NFC Award which could enable the government to throw revenue surplus by the end of the first quarter of the ongoing financial year, said the official.
Interestingly, the revenue surplus generated by provinces in the first quarter of FY13 was 20 times more than that collected in the same period of the previous financial year. For FY13, the government expects to achieve a revenue surplus of Rs80 billion but just in the first three months its revenue surplus has touched Rs86 billion compared to four billion rupees in the same period of the previous financial year.
However, experts on the fiscal side fear that this revenue surplus will disappear in the second and third quarter of the current fiscal year when the country will be heading towards general elections and will witness significant spending.
According to a summary of the provincial fiscal operation, prepared by the federal finance ministry, major sources of revenues for the provinces were transfers of money from the federal government.
The center provided Rs278 billion to four provinces in the form of the Federal Divisible Pool (FDP) under the seventh NFC Award and other heads in the first quarter of the current financial against Rs211 billion in the same period last year. The center released Rs14 billion in the first three months of the current financial year in the form of grants against Rs16 billion released last year.
The Center provided net lending to the provinces to the tune of Rs10 billion in the first quarter of FY13 against three billion rupees in the same period of the last financial year, the fiscal operation stated.
The gross revenues of all provinces stood at Rs332 billion in the first quarter of the current fiscal year compared to Rs268 billion in the same period last year, registering an increase by Rs64 billion.
Against an envisaged target of Rs80 billion in taxes in FY13, four provinces generated Rs18 billion in the first quarter of the current financial year compared to Rs19 billion in the same period of the last financial year.
The collection of non tax revenues declined in provinces as these stood at Rs12 billion during the first three months. Moreover, total expenditures of all provinces were Rs246 billion in the first quarter of the current fiscal year compared to Rs264 billion for the same period last year, registering a decrease in expenditures by Rs18 billion.
The provinces had estimated that overall expenditures would be Rs1,641 billion for FY13. Of total expenditures, the current expenditures of the provinces stood at Rs230 billion in the first quarter of the current financial year against Rs224 billion in the same period of the last financial year.
The provincial governments had budgeted to spend Rs513 billion on development projects in the current fiscal year out of which the federating units utilised Rs16 billion in the first quarter of FY13 against Rs32 billion in the previous year.
The federal government did not disclose the figure of statistical discrepancy for the first quarter of the current fiscal year but it stood at eight billion rupees in the same period of the previous year.
Provincial govts generate surplus revenue of Rs86bn - thenews.com.pk
