Fiscal deficit of the country during the last fiscal year soared to new high of Rs 1.863 trillion which was almost 5.8 percent of the gross domestic product, showing expenditures were on the higher side despite growth recorded in the revenue collection.
According to the figures posted on the website of the ministry of finance in relation to the outgoing fiscal year, the picture again appeared to be quite gloomy.
The fiscal deficit during 2016-17 amounted to 1.863 trillion compared to Rs 1.349 trillion of 2015-16. The fiscal deficit was 5.8 percent of the GDP compared with 4.6 percent, hence the government failed to lower the fiscal deficit. The government set a target of 4.2 percent fiscal deficit as of GDP which it has accelerated by a huge margin
Defense spending also increased sharply by 17 percent to Rs 888 billion compared with Rs 758 billion of the preceding year. The defense expenditure was around 2.8 percent of the GDP.
Similarly the payments on foreign loans and principal loans touched Rs 1.348 trillion during 2016-17 as compared with Rs 1.263 trillion.
Interest and principal payments on foreign loans was nearly 4.2 percent of the GDP.
The revenue collection during the outgoing year was around Rs 3.647 trillion, if we add up the major head of expenses like mark up and principal amount of foreign loans and defense expenditure, nearly 61 percent consumed on both these heads, said an analyst.