ISLAMABAD- Pakistan's overall budget deficit had widened to Rs 777.2 billion or 7.4 per cent of total size of the economy during the last financial year because of the highest current expenditure of the history.   The Finance Ministry has released the summary of Pakistan Fiscal Operations for the last financial year, July 1st 2007-June 30 2008. It says the government collected a total revenue, tax and non-tax, of Rs 1499.4 billion and incurred expenditure of Rs 2276.6 billion, the highest so far. To bridge gap between its income and spending, the government borrowed Rs 520 billion from banks, Rs 106 billion from non-bank domestic sources and Rs 151 billion from external sources. The analysts term the domestic borrowing as one of the major reasons of the current wave of inflation. The government also could not give what it promised to transfer to two federating units, Punjab and Sindh, from the federal divisible pool. The summary shows that the federal government released an amount of Rs 228 billion to Punjab as against its allocated share of Rs 236.3 billion. Punjab received Rs 8.3 billion less than its share. Sindh, which claims to be the biggest revenue generation province, got Rs 1.3 billion less than its share. The federation gave the province an amount of Rs 142.9 billion against the allocation of Rs 144.2 billion. North West Frontier Province got Rs 548 million more than its share, as the government transferred Rs 56.5 billion against the allocation of Rs 55.9 billion. Balochistan also received Rs 364 million more than its allocation. The break up of total current expenditure shows that there is hardly any head where the government could show financial discipline. In fiscal policy 2007-08, for servicing of domestic debt the economic managers fixed Rs 318 billion but ended up on Rs 489.7 billion, which is 4.7 per cent of the GDP. Similarly, Rs 275 billion had been fixed for defense budget but the summary shows the spending at Rs 285.1 billion. The development spending remained at Rs 451.9 billion. The federal government spent Rs 237.8 billion and the provinces utilized Rs 214 billion for development purposes. The government collected revenue of Rs 1499.4 billion, out of which Rs 1050 billion were of taxes and remaining Rs 448.7 billion were the government's earning. Federal Board of Revenue pooled Rs 1010b and provincial taxes amounted to Rs 40b.