Terror war expands budged deficit by 62%

[Omar1984]

Terror war expands budged deficit by 62%
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Updated at: 1043 PST, Tuesday, March 02, 2010

ISLAMABAD: The budget deficit has expanded up to 62 percent due to expenses over war on terrorism in the current fiscal year, Geo news reported.

The cost on security matters has increased by 15% this year as compared to previous one, as claimed by Ministry for Finance on Tuesday.

According to Finance Ministry, the budget deficit in the prevailing fiscal year stood at Rs 403 billon during the period from July to December while during the same period last year the budget deficit was 249 billion rupees, ministry said.

As per the quarterly report of the current fiscal year, the cost on the security issues has risen to the level of 166 billion rupees due to additional expenses in connection with war on terrorism, it said.

 

[Marxist]

Terror war expands budged deficit by 62%
​

Updated at: 1043 PST, Tuesday, March 02, 2010

ISLAMABAD: The budget deficit has expanded up to 62 percent due to expenses over war on terrorism in the current fiscal year, Geo news reported.

The cost on security matters has increased by 15% this year as compared to previous one, as claimed by Ministry for Finance on Tuesday.

According to Finance Ministry, the budget deficit in the prevailing fiscal year stood at Rs 403 billon during the period from July to December while during the same period last year the budget deficit was 249 billion rupees, ministry said.

As per the quarterly report of the current fiscal year, the cost on the security issues has risen to the level of 166 billion rupees due to additional expenses in connection with war on terrorism, it said.

So sir,how will u r country overcome this deficit, 62% is a very high number

 

[praveen]

WTF?Budget deficit of 62% a deficit of 5-6% makes the GOI to get jitters.The cynic in me says US is going to give more aid

 

[Marxist]

WTF?Budget deficit of 62% a deficit of 5-6% makes the GOI to get jitters.The cynic in me says US is going to give more aid

may be US cannot help them all the time...may be issuing some bonds,increasing tax,levying cess ,it will be intersting to know wat riaz haq has to comment on this

 

[jagjitnatt]

That figure is a dangerous amount. Although Pakistan is not gonna collapse or anything cause some country out there is gonna help Pakistan recover.
US and China have interests in Pakistan and would help Pakistan but they won't help all the way, they'll tease them, handle them like puppets and make them feel that they are being fed.

Feels bad being on the receiving end. Hope Pakistan economy recovers soon and the need for above never arises.

 

[sparklingway]

The budget deficit is not alarming, it had been predicted to rise insanely keeping in mind the defence spending and the near static tax collections. The tax base is small and the VAT bill 2010 that has been tabled is supposed to increase the tax base and let the FBR have a greater oversight on revenue collection.

Also income tax on agriculture which has been a controversial subject since Independence is most likely to be enforced this year.

 

[Hulk]

I doubt how the calculations were done, sometimes when a country wants to portray they need money will twist the fact. So lets say they might be expecting some money to be refunded by USA which in process, but they do not include that in calculation. So IMO these figures are not always what they appear to be.

Note:- I am not denying it cannot be true, all I am saying there is other possibility.

 

[TaimiKhan]

WTF?Budget deficit of 62% a deficit of 5-6% makes the GOI to get jitters.The cynic in me says US is going to give more aid

the 4-5% figure you are comparing to is with GDP, this 62% deficit figure is compared to the overall deficit in the budget.

The budget deficit in comparison to GDP would be around 5-6% with this increase.

But the main reason in the raise in defence expenditure is the non-recovery of CSF, which is around 1.4B US$, so once the amount start releasing, the deficit would be met with it.

So not a big issue.

Plus, if our oligarchs start reducing their lavish lifestyle and level of corruption, we would not even have read such a news, but alas, our pathetic selfish mindless shameless oligarchs running the country.

 

[Skeptic]

the 4-5% figure you are comparing to is with GDP, this 62% deficit figure is compared to the overall deficit in the budget.

The budget deficit in comparison to GDP would be around 5-6% with this increase.

But the main reason in the raise in defence expenditure is the non-recovery of CSF, which is around 1.4B US$, so once the amount start releasing, the deficit would be met with it.

So not a big issue.

Plus, if our oligarchs start reducing their lavish lifestyle and level of corruption, we would not even have read such a news, but alas, our pathetic selfish mindless shameless oligarchs running the country.

I guess the figure should be below 5.1% because that was mentioned as pre-condition to loan from IMF. I do not think Pakistan would like to default on that account. 62% might be increase in the deficit over last year, which is certainly a decent statistic for any developing nation.

I would rather say well done on maintaining it within prescribed limits despite the war.

 

[TaimiKhan]

I guess the figure should be below 5.1% because that was mentioned as pre-condition to loan from IMF. I do not think Pakistan would like to default on that account. 62% might be increase in the deficit over last year, which is certainly a decent statistic for any developing nation.

I would rather say well done on maintaining it within prescribed limits despite the war.

Yeah, there a relaxation given to meet some IMF loan, but this amount will add a little more percentage to it. But as i said, if we receive the stuck CSF amount, this deficit will go away. Its a temporary phase.

Just to give an Idea, the State owned State Bank of Pakistan earned more then 250+Billion rupees as net profit just last year and this year its gonna be further more. Nearly the full amount of our defence budget is being generated by just one organization.

The above figure was just for a comparison that we don't have any issue in generating funds from within Pakistan if our oligarchs want to.

But with 100+ ministerial posts and billions being consumed by them only, it seems they are not interested in funding this war from with in or uplift the country, but they are more willing to beg and get us into further trouble.

 

[Cityboy]

corrupt politician and bureaucrats are the real terrorists of pakistan and india ...