Sumary of There’s something for everybody in this budget – except the IMF:
- The government committed a fiscal deficit target of 5.1pc of GDP for next year, but the budget sees the same deficit at 6.3pc, around Rs541 billion higher than agreed..
- The FBR tax revenue target has been set at Rs5,829bn, a full Rs134bn less than what has been committed to the IMF..
- with the aim of keeping total subsidies at Rs530bn, but in this budget the power subsidies alone have blown past this target..
- For next year, it has been programmed at Rs184bn where the Fund was promised that these would be brought down through better targeting..
- The government had committed to curb expenditures, raise revenues and contain the growth of the circular debt to stay in the programme..
- Much of the revenue growth may well come from the growth itself, from the simple increase in the cashflows of businesses and imports, even if these have been subjected to rate cuts…