Govt Celebrates 3rd Straight Budget Surplus Despite 40% Decline in Q1 FY27
The federal government is celebrating Pakistan’s third consecutive first-quarter fiscal surplus as a major improvement in public finances, even as … Read More The post Govt Celebrates 3rd Straight Budget Surplus Despite 40% Decline in Q1 FY27 appeared first on ProPakistani .
Pakistan's federal government has reported a third consecutive first-quarter fiscal surplus, marking a significant improvement in public finances, despite a 40% year-on-year decline in the surplus and a 16% increase in government expenditure. In Q1FY27, the country recorded a fiscal surplus of Rs. 1.274 trillion, or 0.9% of GDP, compared to Rs.
2.119 trillion, or 1.7% of GDP, in the same period last year. Finance Minister's adviser Khurram Shehzad noted that Pakistan has experienced three consecutive first-quarter surpluses in FY25, FY26, and FY27 after 23 years of deficits from FY02 to FY24. The primary surplus declined by 15% to Rs. 2.974 trillion, or 2.1% of GDP, falling from Rs.
3.497 trillion a year earlier, yet it exceeded the FY27 budget target by Rs. 239 billion, or 8.7%. Government revenue fell by 3% to Rs. 6.004 trillion, while expenditure increased by 16% to Rs. 4.73 trillion. Tax revenue increased by 7% to Rs. 3.387 trillion, with the Federal Board of Revenue collections rising to Rs. 3.086 trillion.
However, non-tax revenue dropped by 14% to Rs. 2.617 trillion, offsetting the rise in tax receipts. Petroleum development levy and carbon levy collections rose by 6% to Rs. 404 billion. The Rs. 650 billion increase in expenditure, coupled with a 23% rise in debt servicing to Rs. 1.7 trillion, put further strain on the government's fiscal position.
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