Issue 74

Budget Study Centre   Issue 74
Sep 03, 2020

CPDI BUDGET WATCH

Fortnightly Budget News Alerts
 

Over Rs538bn added to circular debt in FY20, Senate body told

The Pakistan Today (Sep 03, 2020)

ISLAMABAD: The Senate’s Standing Committee on Power was informed on Thursday that with an addition of over Rs538 billion during the last fiscal year (FY20), Pakistan’s total circular debt now stands at Rs2,150 billion. The committee meeting, which was held with Fida Muhammad in the chair, discussed the exact figures of circular debt, transparency in the recruitment… Read More
 

SBP reserves up $71.9m to 12.7bn

The Pakistan Today (Sep 03, 2020)

The central bank’s foreign exchange reserves increased 0.6pc on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday. On August 28, the SBP-held foreign currency reserves were recorded at $12,712.7 million, up $71.9 million compared with $12,640.8 million in the previous week. The central bank cited no reason for the rise in reserves. Overall, liquid foreign… Read More
 

UK won’t cut foreign aid budget – Dominic Raab

The bbc.com (Sep 02, 2020)

The UK government remains committed to spending 0.7% of national income on foreign aid, Dominic Raab has said. The foreign secretary dismissed as “tittle tattle” reports that the £15bn aid budget could be cut to pay for more defence and intelligence spending. Press reports suggest Chancellor Rishi Sunak will cut aid spending to help pay off rising debts in his Autumn budget… Read More
 

KP finance deptt, SNG hold orientation session on budget

The Pakistan Observer (Sep 02, 2020)

Peshawar: The Khyber Pakhtunkhwa Finance Department organized an orientation session for members of the KP Assembly to enhance their understanding of public finance management, budget analysis and key challenges of budget 2020-21. The moot was organized in collaboration with the UK Foreign, Commonwealth and Development Office (FCDO) funded … Read More
 

Fiscal deficit up Rs.214bn in 1H as pandemic hurts

The Dailymirror.IK (Aug 31, 2020)

Sri Lanka’s budget deficit for the first six months of 2020 expanded by Rs.214 billion in comparison to the same period in 2019 as the pandemic put a heavy damper on tax incomes as curfews imposed for nearly two months took a heavy toll on incomes of businesses and individuals. The Finance Ministry data recorded a budget deficit of Rs.735.7 billion for the six months compared… Read More
 

Fiscal deficit up Rs.214bn in 1H as pandemic hurts

The Dailymirror.IK (Aug 31, 2020)

Sri Lanka’s budget deficit for the first six months of 2020 expanded by Rs.214 billion in comparison to the same period in 2019 as the pandemic put a heavy damper on tax incomes as curfews imposed for nearly two months took a heavy toll on incomes of businesses and individuals. The Finance Ministry data recorded a budget deficit of Rs.735.7 billion for the six months compared… Read More
 

FBR surpasses July-Aug revenue target by Rs42bn

The Pakistan Today (Aug 31, 2020)

ISLAMABAD: With positive growth in revenue collection, the Federal Board of Revenue (FBR) has surpassed its collection target for the first two months (July and August) of the financial year 2020-21 (FY21), as the board collected Rs593 billion during the period under review against the target of Rs551 billion. According to official data shared by FBR, the revenue collection during the first two months of… Read More
 

County still seeking $500,000 in 2021 budget cuts

The Heraldbulletin.com (Aug 30, 2020)

ANDERSON — The Madison County Council still must reduce the proposed 2021 budget by approximately $550,000. The council on Thursday reduced the requested 2021 budgets to $37,048,000, according to County Auditor Rick Gardner. Gardner said the council voted to remove from the commissioners’ 2021 budget the salary for the county administrator and reduced the funding in… Read More
 

Exchange rate flexibility helps Pakistan in reducing external vulnerability: IIF

The Nation (Aug 29, 2020)

ISLAMABAD-The Institute of International Finance has said that the exchange rate flexibility in Pakistan was helping the country to reduce external vulnerability. The Washington-based global association of financial industry IIF, in its report “Pakistan: Commitment to Reform Faces a Test”, said Pakistan’s exchange rate was market-determined and had depreciated by 22pc in real effective terms… Read More
 

Cantonment boards yet to prepare annual budgets

The Dawn (Aug 29, 2020)

RAWALPINDI: The Rawalpindi and Chaklala cantonment boards have failed to prepare their annual budgets for 2020-21 even two months after the start of the new fiscal year. Moreover, both the cantonments did not hold any board meeting to approve building maps and administrative issues in the last four months. A senior official of the RCB told Dawn that a board meeting could not be held… Read More
 

Pakistan’s economy could grow 1.8 per cent in FY21, says IIF

The Pakistan Today (Aug 28, 2020)

LAHORE: A report released by International Institute of Finance (IIF) on Thursday said Pakistan’s economy could grow by 1.8 per cent in the ongoing fiscal year 2020-21 fueled by some recovery in private consumption. According to IIF, the coronavirus pandemic led to a contraction of 0.7 per cent in output during the last fiscal year 2019-20. It shared domestic demand fell by 2 per cent, whilst… Read More
 

PU Senate approves Rs9.39bn budget

The Dawn (Aug 28, 2020)

LAHORE: The Punjab University Senate on Thursday approved recommendation of the syndicate regarding Rs9.39 billion budget for the fiscal year 2020-21. Governor/Chancellor Chaudhry Sarwar had chaired the 355th meeting of the PU Senate through a video link and authorised Vice Chancellor Prof Dr Niaz Ahmad to conduct the meeting on… Read More
 

External debt and liabilities surge

The Express Tribune (Aug 27, 2020)

ISLAMABAD: Pakistan’s external debt and liabilities mushroomed to nearly $113 billion at the end of June this year, an addition of $17.6 billion or 18.5% in the past two years, reported the State Bank of Pakistan (SBP) on Wednesday. The external debt and liabilities – $112.8 billion to be precise – has been booked by both public and private sectors. However, 87% of the external debt and liabilities is the… Read More
 

External debt and liabilities surge

The Express Tribune (Aug 27, 2020)

ISLAMABAD: Pakistan’s external debt and liabilities mushroomed to nearly $113 billion at the end of June this year, an addition of $17.6 billion or 18.5% in the past two years, reported the State Bank of Pakistan (SBP) on Wednesday. The external debt and liabilities – $112.8 billion to be precise – has been booked by both public and private sectors. However, 87% of the external debt and liabilities is the… Read More
 

PHA board approves reduced budget for 2020

The Express Tribune (Aug 27, 2020)

FAISALABAD: The board of directors of the Parks and Horticulture Authority (PHA) has approved a budget of Rs845.38 million for the financial year 2020-21, allocating almost the entire amount for non-development expenditure. Only Rs25.9 million has been placed at the disposal of the director general for development expenses. The PHA is facing financial constraints due to the Covid-19… Read More
 

Taiwan will boost its 2021 defense budget by 10 percent

The Armyrecognition.com (Aug 26, 2020)

The Taiwanese Directorate General of Budget, Accounting and Statistics, said in a statement taht President Tsai Ing-wen’s cabinet proposed T$453.4 billion ($15.42 billion) in military spending for the year starting in January 2021, versus T$411.3 billion budgeted for 2020. The modernization of Taiwan’s armed forces is considered as a hostile stance by mainland China, a situation « worsened » by the fact… Read More
 

Azerbaijan’s Revised Budget Highlights Hit from Oil and Pandemic

The Fitchratings (Aug 26, 2020)

Fitch Ratings-London-26 August 2020: Azerbaijan’s (BB+/Negative) revised 2020 budget highlights the hit to public finances from lower oil prices and the pandemic, Fitch Ratings says. The planned deficit has been raised to 12.4% of GDP from 2.3% in the original budget. An increase in the planned transfer from the sovereign wealth fund (SOFAZ) to the budget, should support the 1.7 AZN/USD… Read More
 

Pakistan’s foreign loans jump to $1.8b in July

The Express Tribune (Aug 25, 2020)

ISLAMABAD: Pakistan received $1.8 billion in gross foreign loans in July – 263% higher than the same month of previous year – due to the premature repayment of $1 billion of Saudi Arabian cash assistance. “In the first month of fiscal year 2020-21, the government has received $800 million total external inflows from multiple financing sources,” reported the Ministry of Economic Affairs… Read More
 

‘Public debt management improved in PTI govt’s second year’

The Pakistan Today (Aug 24, 2020)

ISLAMABAD: Unlike the impression that the Pakistan Tehreek-e-Insaf (PTI)-led government has taken the country’s public debt to exorbitant levels during its first two years in power, the Ministry of Finance claims that public debt management indicators had, in fact, improved significantly during the second year of the incumbent government. Taking to Profit, Finance Division… Read More
 

KPK to look into Rp 90 billion from state budget allegedly spent on influencers

The Jakarta Post (Aug 24, 2020)

The Corruption Eradication Commission (KPK) said it would look into allegations that state funds of more than Rp 90 billion (US$6 million) were allocated to pay influencers to promote government policies on social media. “We will look closely to ensure whether such a budget exists or not,” KPK deputy chairman Nawawi Pomolango said on Sunday as quoted by Tempo. Nawawi added that the KPK… Read More
 

HMC Passes Budget For Fiscal Year 2020-21

The Urdupoint (Aug 24, 2020)

HYDERABAD, (APP – UrduPoint / Pakistan Point News – 24th Aug, 2020 ) :The outgoing elected representatives of Hyderabad Municipal Corporation (HMC) here Monday passed a Rs3.024 billion budget for fiscal 2020-21. Speaking on the occasion Mayor HMC Syed Tayyab Hussain deplored that the Sindh government did not pay heed to the financial requirements of the corporation… Read More
 

Economy on right track, says Imran as he reveals current account surplus of $424m in July

The Dawn (Aug 24, 2020)

Prime Minister Imran Khan on Monday said the country’s current account balance had recorded a surplus of $424 million in July, signalling that the economy was “on the right track”. Hailing the development in a message on Twitter, the premier noted that in July last year, Pakistan had a current account deficit (CAD) of $613 million while last month the deficit stood at $100m. He attributed the “strong… Read More
 

Ministries need more info to expedite budget execution

The Jakarta Post (Aug 24, 2020)

To address the impact of the COVID-19 pandemic, the government has increased the 2020 state budget to a total of Rp 2.73 quadrillion (US$188 billion), including Rp 695.2 trillion for economic recovery programs (PEN). However, although 45.7 percent of the budget had been disbursed as of July, spending in the PEN component remained quite low. The execution of the state budget starts with the enactment of… Read More
 

PM Imran lauds K-P govt on 65% increase in revenue generation

The Express Tribune (Aug 23, 2020)

ISLAMABAD: Prime Minister Imran Khan lauded on Saturday the Khyber-Pakhtunkhwa (K-P) government for increasing its revenue generation by 65 per cent despite the impact of Covid-19. In a Facebook post, the premier said that during the last financial year the K-P revenue authority increased their revenue generation by 65 per cent, adding that the growth in revenue surpassed all other revenue… Read More

Foreign direct investment up 88pc to $2.56bn in 2020
The Pakistan Today (Aug 23, 2020)

ISLAMABAD: Foreign Direct Investment (FDI) into the country increased by 88 per cent to $2.56 billion in 2020 from $1.36 billion in 2019, according to data released by the State Bank of Pakistan (SBP). The FDI improved from 2015 to 2018 and but then had a major fall in 2019 due to the depreciation of the rupee. However, it improved again in 2020 despite the economic slowdown brought about by the Covid-19… Read More

Pakistan’s public debt soars to Rs36.3tr
The Express Tribune (Aug 21, 2020)

ISLAMABAD:

The Pakistan Tehreek-e-Insaf (PTI) government added Rs11.35 trillion in the public debt during the first two years in power, which was more than the total debt the previous government had taken in its five-year term. In a briefing to media, the spokesman of the Ministry of Finance said on Thursday that total public debt as of June 30, 2020, increased to Rs36.3 trillion orRead More

KP govt reforms sports sector; a hefty sports budget allocated to the province
The Pakistan Today (Aug 21, 2020)

PESHAWAR: The provincial government has embarked on an extensive reform strategy in the sports sector during the last two years to strengthen sports at the grass-root level, claim the officials of Khyber Pakhtunkhwa Directorate of sports, on Friday. The officials said that KP has allocated Rs26 billion in the fiscal budget to ensure the provision of stadiums and gymnasiums with appropriate facilities at … Read More