KARACHI: Growth in revenue collection of the country outpaced the rise in current expenditures during the first quarter of 2017-18, according to a recent report by the State Bank of Pakistan (SBP).

 

Although growth in expenditure remained slower than that in revenue collection, it was significantly higher than last year, said the SBP report.

 

“Not surprisingly, current expenditures grew much sharply on account of higher spending on defence, maintaining public order and safety, interest payments, environment protection, etc.,” it said.

 

The revenue balance, which is the gap between total revenue and current expenditures, also shrank to 0.6 per cent of gross domestic product (GDP) in July-September from 0.7 per cent a year ago.

 

Collection grew 18.9 per cent during the quarter against a decline of 8pc last year. This recovery was spearheaded by a 22 per cent increase in tax collection by the Federal Board of Revenue (FBR).

 

Growth in tax collection by the FBR in the quarter was not only the highest in the last five years, but also broad-based, said the SBP report.

 

Collection of both direct and indirect taxes recorded over 20 per cent rise. “This rebound in tax collection allowed the FBR to double the amount of refunds to Rs51.4 billion during the first quarter compared to only Rs25.9 billion in the corresponding period of last year.”