Pakistan’s budget deficit in the first quarter of this fiscal year increased by 43 percent to Rs 809 billion due to rising ongoing expenditure, interest payments on local debt, and increased defence spending. The budget deficit was 438 billion rupees in the same period of last financial year.

As per official statistics, the government’s total revenue in the first quarter of this financial year was 2.02 trillion rupees, compared to the revenue of 1.81 trillion rupees in the same period of the previous financial year. In the first quarter, the tax revenue stood at 1.78 trillion rupees, which was 1.53 trillion rupees in the same period of the previous financial year. Due to a slowdown in economic activities during the period under review, non-tax revenue stood at Rs 235 billion as against Rs 276 billion in the first quarter of the previous fiscal year.

From July to September 2022, the total expenditure of the government reached 2.83 trillion rupees, which was 2.25 trillion rupees in the same period of the previous financial year. The country’s economy is facing a balance of payment crisis along with a budget deficit. This twin deficit has gripped Pakistan’s economy, which has affected economic growth and is also increasing the risks of default on Pakistan, data shows.