ISLAMABAD: About 23 per cent increase in six oil and gas related taxes and a substantial budget surpluses by the provinces helped the federal government contain half-yearly deficit at Rs540 billion compared with Rs624bn of same period last year.

The country’s overall fiscal deficit was, therefore, worked out at 2.1pc of gross domestic product (GDP) for the first six months (July-December) of this fiscal year against 2.6pc in the same period last year, according to details of half-yearly fiscal operations released by the ministry of finance on Monday.

The ministry said it collected Rs139bn in first six months of 2013-14 on oil and gas compared with Rs113bn of same period last year, an increase of about 22.75pc. This does not include sales tax that is charged on sale of all petroleum products and natural gas at the rate of 17pc.

The official data, however, suggest the collection of petroleum levy remained lower than last year because of adjustments in its rate to partially protect consumers from hike in international oil prices.

As a consequence, the government collected Rs51.6bn as petroleum levy in first six months of FY2014 compared with Rs57.6bn of same period last year, a reduction of about 10pc.

On the other hand, the government collected Rs29bn as development surcharge on gas compared with Rs7.5bn in the same period last year, an increase of about 287pc.

Likewise, the government earned Rs36.7bn as royalty on oil and gas in first half of this fiscal year compared with Rs29.7bn in the same period last year, an increase of 23.5 per cent.

The government also collected Rs8.3bn as discount retained on crude oil compared with Rs7.45bn in the same period last year.

The collection on account of Gas Infrastructure Development Cess (GIDC) tumbled to Rs6bn in July-Dec 2013-14 against Rs24.6bn collected in the corresponding period last year because of litigation.

The finance ministry said that total fiscal deficit in first six months of this fiscal year stood at Rs540bn because of a Rs167.5bn cash surplus provided by the four provincial governments.

The fiscal deficit was therefore worked at 2.1pc of GDP at the end of December 2013 against Rs624bn deficit of same period last year that stood at 2.6pc.

The ministry said the total revenue in first six months of the current year stood at Rs1684 billion compared with Rs1462 billion of same period last year, an increase of 15pc.

On the other hand, total expenditure stood at Rs2,225bn in the period under review as against Rs2,086bn in the same period last year, an increase 6.7pc.

The tax revenue in six months amounted to Rs1,172bn this year as against Rs1,012bn the same period last year, an increase of 15.8pc.

The defence expenditure stood at Rs295bn against Rs256bn the same period last year, an increase 15pc.