ISLAMABAD: A robust cash surplus from provinces at a record Rs293 billion helped the federal government contain consolidated fiscal deficit at about 2.4 per cent of GDP in first half of the current fiscal year even though revenue collection by the Federal Board of Revenue posted a humble 4.5 per cent growth.

Provisional data compiled by the federal government for first half of the current fiscal year (July-December 2012) suggested the federal government posted a budget deficit of about Rs765 billion or 3.5 per cent of GDP. This was offset by a record Rs293 billion cash surplus from the provincial governments brought the consolidated fiscal deficit down to 2.4 per cent.

The six-month total tax revenue this year stood at Rs942 billion against Rs868 billion of the same period last year, showing an increase of more than 8.52 per cent. This growth in tax revenue was mainly contributed by 190 per cent increase in petroleum levy that increased from Rs20 billion of first six months of last year to Rs425 billion collected this year.

The revenue collection by Federal Board of Revenue in first half of the year amounted to Rs883bn against last year performance of Rs845bn, showing a nominal growth of about 4.5 per cent. In terms of revenue collection as percentage of GDP the FBR tax collection was lower than last year.

NON-TAX: Non-tax revenue posted a healthy growth of almost 98 per cent mainly because of a over Rs195 billion received from the United States as part of coalition support fund that had been held up during the last fiscal year because of tense relationship following Abbotabad operation against Osama Bin Laden and attack by US forces on Salala border post in Mohmand Agency killing over 24 Pakistani troops.

As such the total non-tax revenue in first six months amounted to Rs425 billion this year compared with Rs215 billion of the same period last fiscal year. This also included Rs25 billion dividends received from government shareholding in public sector entities and Rs100 billion profit from the State bank of Pakistan.

The total revenue (both tax and non-tax) in six months amounted to Rs1,370 billion compared with Rs1,082 billion last year, showing an increase of 26.6 per cent.

Of this, an amount of Rs590 billion was disbursed to the provincial governments under distribution formula of the National Finance Commission against provincial share of Rs466 billion last year, up by 26.6 per cent.

The federal share of the total revenue stood at Rs775 billion during first half of the year compared with Rs616 billion last year.

The total expenditure of the federal government stood at Rs1,540 billion in first half of the year including current expenditure of Rs1,374bn and releases for the public sector development programme at Rs142bn.