Summary Between July to September, the fiscal deficit was 1.3 percent of Gross Domestic Product (GDP).
ISLAMABAD (Dunya News) – Despite hectic efforts of government, the fiscal deficit has reached to Rs110 billion in three months.
Between July to September, the fiscal deficit was 1.3 percent of Gross Domestic Product (GDP).
In order to end Rs110 billion deficits, the government is constantly sinking into debt.
Rs300 billion loans have been taken by the government in three months. According to Ministry of Finance, with three percent escalation defense expenditures reached Rs151 billion in the first three months of 2016.
Meanwhile, in the same year Rs414 billion were spent for internal and external debt and interest payment.
Economic analysts suggest that there is a dire need to reform the tax system because then the revenues will increase and government will be less dependent on debts.
