ISLAMABAD - Apart from Balochistan, all other three provinces recorded budget deficits during the last financial year (2011-2012) that ballooned the country’s overall budget deficit to Rs 1761 billion (8.5 per cent of the GDP) during the last financial year 2011-2012.

According to the official figures of the Finance Ministry, the total revenues of all four provinces were recorded at Rs 1333.951 billion against their total expenditures of Rs 1356.076 billion in the last financial year. The Punjab government’s expenditures were recorded at Rs 602.86 billion against the total revenues of Rs 593.90 billion, thus leaving budget deficit of Rs 8.96 billion during the financial year that ended on June 30 2012. Meanwhile, the Sindh’s government’s expenditures were recorded at Rs 412.283 billion as compared to the total revenues of Rs 383.78 billion, therefore province’s budget deficit remained Rs 28.504 billion.

According to the figures, KP government had also faced budget deficit of Rs 3.740 billion during the last financial year, as province’s expenditures stood at Rs 225.801 billion against its revenues of Rs 222.061 billion in the period under review. The figures revealed that only Balochistan government left budget surplus of Rs 19.080 billion in the previous fiscal year. Balochistan government’s expenditures were recorded at Rs 115.136 billion as compared to its revenues of Rs 134.216 billion during the last financial year.

Finance Ministry officials informed that one of the main reasons of country’s higher budget deficit of Rs 1761 billion (8.5 per cent of the GDP) during the last financial year was provinces’ higher deficits. The provincial governments played havoc with the federal government’s plan of slashing the budget deficit as instead of achieving the targeted surplus of Rs91 billion (0.4 per cent of GDP) they actually ended up with a deficit of Rs37 billion.