47. Pakistan Economic Survey 2011-12 - Consultancy Services in ...

Pakistan Economic Survey 2011-12Table 4.4 Consolidated Revenue & ExpenditureBudgetEstimate2011-12Prov. ActualJuly-March2010-11Prov. ActualJuly-March2011-12Growth (%)July-March2011-12PSDP 639.9 246.5 375.6 52.4Other Development 97.1 35.7 45.4 27.2c) Net Lending 7.9 70.5 6.9 -90.2C. Overall Fiscal Deficit 850.6 783.3 894.9 14.2As % of GDP 4.0 4.5 4.3 -4.4Financing of Fiscal Deficit 850.6 783.3 894.9 14.2i) External Sources 134.5 83.1 47.4 -43.0ii) Domestic 716.1 700.1 847.5 21.1- Bank 412.6 316.4 443.8 40.3- Non-Bank 303.5 383.8 403.7 5.2GDP at Market Prices 21,042 18,033 20,654 14.5Source: Budget Wing, Finance Division and FBRAccording to the consolidated revenue andexpenditure statement of the government, totalrevenues grew by 16.8 percent during July-March2011-12 and stood at Rs. 1,747.0 billion comparedto Rs. 1,495.3 billion in the same period of fiscalyear 2010-11. The increase is mostly due to asignificant rise in FBR tax collection, whichincreased by 25.5 percent during the period underreview. On the other hand non tax revenuedeclined by 2.6 percent as it stood at Rs. 367.9billion in July-March 2011-12 from Rs. 377.7billion in the same period last year. Totalexpenditures were recorded at Rs. 2,641.9 billionduring July-March; 2011-12 compared to Rs.2,262.6 billion in the same period last year posteda growth of 16.8 percent. External resources forfinancing the budget deficit amounted to Rs. 47.4billion - a net decline of 43 percent. Insufficientexternal financing shifted greater reliance ondomestic resources to finance the budget deficitduring July-March, 2011-12. The fiscal deficit as apercentage of GDP stood at 4.3 percent against 4.5percent during the same period of fiscal year 2010-11.FBR Tax CollectionFBR tax collection for the fiscal year 2011-12 wastargeted at Rs. 1,952 billion which was higher by25.3 percent over the actual collection of Rs. 1,558billion during 2010-11. During July-April, 2011-12net collection stood at Rs. 1,426.0 billion despitethe major challenges to the economy due to thedearth of electricity and gas. This reflects 24.0percent growth over Rs. 1,149.8 billion collectedduring the same period last year (Table:4.5).Direct TaxesThe gross and net collection of direct taxes hasregistered growth of 31.3 percent and 22.6 percentrespectively during the first ten months of 2011-12.The gross and net collection increased from Rs.462.9 billion and Rs. 431.3 in July-April, 2010-11to Rs. 607.8 billion and Rs. 528.9 billionrespectively during July-April, 2011-12. Majorrevenue spinners of direct taxes are withholdingtax, voluntary payments and collection on demand.Indirect TaxesDuring July-April 2011-12, the gross and netcollection of indirect taxes has witnessed a growthof 23.1 percent and 24.9 percent respectively. Ithas accounted for 62.9 percent of the total FBR taxrevenues.Within indirect taxes, growth in sales tax increasedby 33.7 percent. The gross and net sales taxcollection during July-April 2011-12 reached Rs.673.0 billion and Rs. 635.1 billion respectively,showing growth of 30.6 percent and 33.7 percentrespectively over the corresponding period of2010-11. Of the net collection, 44.8 percent of totalsales tax was contributed by sales tax on domestic60