23pc More earnings of Govt from oil and gas sector
Islamabad: About 23 per cent increase in six oil and gas related taxes and a substantial budget surpluses by the provinces helped the federal government contain half-yearly deficit at Rs540 billion compared with Rs624bn of same period last year.
The country’s overall fiscal deficit was, therefore, worked out at 2.1pc of gross domestic product (GDP) for the first six months (July-December) of this fiscal year against 2.6pc in the same period last year, according to details of half-yearly fiscal operations released by the ministry of finance on Monday.
The ministry said it collected Rs139bn in first six months of 2013-14 on oil and gas compared with Rs113bn of same period last year, an increase of about 22.75pc. This does not include sales tax that is charged on sale of all petroleum products and natural gas at the rate of 17pc.
As a consequence, the government collected Rs51.6bn as petroleum levy in first six months of FY2014 compared with Rs57.6bn of same period last year, a reduction of about 10pc.
On the other hand, the government collected Rs29bn as development surcharge on gas compared with Rs7.5bn in the same period last year, an increase of about 287pc.
The collection on account of Gas Infrastructure Development Cess (GIDC) tumbled to Rs6bn in July-Dec 2013-14 against Rs24.6bn collected in the corresponding period last year because of litigation.
The ministry said the total revenue in first six months of the current year stood at Rs1684 billion compared with Rs1462 billion of same period last year, an increase of 15pc.
The tax revenue in six months amounted to Rs1,172bn this year as against Rs1,012bn the same period last year, an increase of 15.8pc.
The defence expenditure stood at Rs295bn against Rs256bn the same period last year, an increase 15pc.