July-December budget deficit estimated at 2.7 percent of GDP

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ISLAMABAD (March 02 2010): Budget deficit for the first six months of current fiscal year (July-December) has been estimated at 2.7 percent of Gross Domestic Product (GDP), or Rs 403 billion in actual rupee terms, Ministry of Finance said. According to July-December 2009 fiscal operation figures report released by the Ministry of Finance on Monday, defence expenditure was Rs 165 billion, around 48 percent of budgetary allocation for the year, reflecting accuracy of budgetary estimates.

A similar trend was visible in tax- and non-tax revenue for the first six months of the current fiscal year, meaning that budgetary estimates have been largely met. The government met the budget deficit through Rs 193 billion external inflows, or around 38 percent of budgetary expectations, reflecting a shortfall from budgetary estimates. Bank borrowing for the first six months accounted for 74 percent of the budgetary provision for the entire year.