ISLAMABAD: The volume of fiscal deficit has reached Rs. 799 billion with an increase of 2.4 percent in the first six months of FY16-17, ARY News reported.
According to statistics, the volume of fiscal deficit was 1.7 percent of the Gross National Product (GNP) of the previous fiscal year.
As part of the budget 2016-17, the government has set a target of containing fiscal deficit below 3.8pc of GDP, but the actual deficit has moved past 2.4pc of GDP (more than 63pc of the limit), according to details of fiscal operations released by the finance ministry on Tuesday. The increase in debt causes decline in revenue and increase in spending.
According to economists, the government spending has increased after the strict International Monetary Fund (IMF) conditions ended.
The deficit of the first six months of FY-16-17 was recorded at Rs. 28 trillion whereas the fiscal deficit for FY 15-16 was Rs. 25 trillion.
It is pertinent to mention that that the volume of fiscal deficit was Rs. 438 trillion from July till September whereas a significant decrease in tax collection also witnessed during the period.