A record amount of Rs. 527 billion net profit transfer by RBI, against Rs. 330 billion last year, helped the central government finance substantially during August. Revenue receipt rose 24 per cent during the month and 7 per cent cumulatively to Rs. 2,705 billion. Even as mirroring no marked pick-up in the economy, tax receipt ran at last year’s level, non-tax revenue increased 49 per cent during August, and 24 per cent over April-August to Rs. 850 billion. Non-debt capital receipt continued to run at lower levels, which resulted in 6 per cent cumulative increase in total receipt to Rs. 2,748 billion.

In gross tax collection, excise and customs duties ran lower, whereas personal income tax (Rs. 785 billion) and service tax (Rs. 528 billion) increased decently by around 15 per cent each. At Rs. 736 billon, corporate tax showed a marginal y-o-y increase.

Government disbursement increased 19 per cent during August, reversing decline of the previous two months. Over April-August, total expenditure showed 2 per cent increase to Rs. 6727 billion. Plan expenditure went up 36 per cent during the month but at Rs. 1,776 billion, it showed 3 per cent decline cumulatively. Non-plan expenditure increased 14 per cent, with cumulative growth assessed lower at 3 per cent. Total revenue expenditure increased 17 per cent during August, but nominally to Rs. 5,952 billion cumulatively.

Total capital expenditure shot up 38 per cent, but because of declines in the preceding three months, cumulatively at Rs. 775 billion the capex ran 1.4 per cent lower.

Gross fiscal deficit, the net borrowing to meet the shortfall between expenditure and receipt, escalated 14 per cent during August; though, helped by decline in preceding two months cumulatively, the deficit ran lower during the first five months of the ongoing fiscal. Net borrowing of Rs. 3,979 billion during the period accounted for 75 per cent of the raising budgeted for the year.


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