Deficit of fiscal for 2011-12 hits 5% of GDP

The target of increase in Gross Domestic Production would be 4.3%.  According to budget documents, the estimate of total expenditures is more than Rs 32 trillion. The final decision of raise in salaries of official employees would be taken in the cabinet meeting before announcement of the budget.  Pakistan will miss the target of fiscal deficit fixed at 4.7 percent of GDP for FY 2011-12.  The actual deficit will climb to 5 percent by the end of the current financial year. According to the details of the Annual Plan 2012-13, Rs65 billion would be invested on power projects in the next financial year while an allocation of Rs48 billion would be made for the projects of water reservoirs. For Diamer Bhasha Dam an amount of Rs8 billion has been earmarked. The report said apart from missing the target for fiscal deficit, Pakistan will not as well be able to collect Rs1952 billion tax as projected for FY 2011-12. The tax collection of Federal Bureau of Revenue (FBR) will be less by 1.6 percent or Rs31 billion. According to the Annual Plan, Rs23 billion have been kept for Railways; Rs57 billion for highways; Rs20 billion for education and; Rs24 billion for health sector. The report said the situation of Foreign Direct Investment (FDI) was unsatisfactory, as it witnessed around 48 percent decline in the first 9 months of the current fiscal year. The stock market also saw a foreign capital flight of 83 million dollars, with foreign investment in local bourse witnessing a nosedive of 148.5 percent. Power sector will be on government s top priority list on which Rs81 billion will be spent. WAPDA will invest Rs115 billion in power sector while the government will spend Rs35 million on Chashma Nuclear-III and IV projects.