Petroleum development surcharge

ISLAMABAD: The governments earnings through development surcharge on petroleum witnessed unprecedented upsurge to Rs28.839 billion till December 2008 compared to Rs1.843 billion till September 30, 2008, official data released by the Finance Ministry shows on Monday.

The prices of crude oil in international market had witnessed upsurge till September 2008 and then nosedived resulting into windfall profits for the government of Pakistan.

Islamabads authorities preferred to meet revenue shortfall by keeping POL prices high to collect higher amount of the development surcharge on petroleum or the Petroleum Development Levy (PDL) rather than passing on benefits of reduced prices to consumers.

However, the development surcharge on gas registered declining trend as it stood at Rs8.510 billion till Dec 2008 compared to Rs6.356 billion till September 30, 2008. On other hand, the royalty on oil and gas increased up to Rs25.812 billion till Dec 2008 against Rs10.373 billion till Sept 2008.

The non tax revenue witnessed major contribution in shape of SBP profit to the tune of Rs71 billion. In the name of category others the non tax revenue collection went up to Rs43.765 billion till Dec 2008 compared to Rs14.915 billion till Sept 2008.

Pakistan has scaled down fiscal deficit target to Rs250.568 billion in the first half of the current fiscal from Rs356.321 billion in the same period of the previous financial year in order to meet the most crucial benchmark of performance criteria placed by the IMF.

According to fiscal operation of Finance Ministry released on Monday, the countrys budget deficit stands at Rs250.568 billion or 1.9% of the GDP in first half of the current fiscal 2008-09 compared to Rs356.321 billion (3.6% of GDP) in the same period of previous fiscal year.

The budget deficit of Rs250 billion was financed through external as well as domestic borrowing by contributing Rs36.991 billion and Rs213.577 billion respectively in July-Dec period of 2008-09. The overall development spending stood at Rs122 billion with federal PSDP OF Rs72 billion and provincial PSDP share of Rs49.401 billion. The services of domestic debt consumed Rs265 billion while external debt Rs33.921 billion. The superannuation of allowances and pension utilized Rs30.761 billion in July-Dec period of 2008-09. The grants other than provinces stood at Rs37.688 billion and other general public services consumed Rs63.320 billion.

The defence affairs and services related expenditures were Rs147.783 billion, public order and safety affairs Rs13.890 billion, economic affairs Rs74.494 billion, environmental protection Rs73 million, housing and community amenities Rs548 million, health Rs2.336 billion, recreation culture and religion Rs1.190 billion, education affairs and services Rs7.760 billion and social protection Rs630 million.

Total revenues of the country stood at Rs834.478 billion in July-Dec period of 2008-09 against total expenditures of Rs1.085 trillion. Tax revenues were Rs577.993 billion while non-tax revenues were Rs256.485 billion.

The current expenditures including interest payments and defense consumed the major chunk in the first half of the current fiscal as interest payments stood at Rs300 billion while defence expenditures were Rs147.783 billion.

In non-tax revenue side, the State Bank of Pakistan (SBP) profit contributed a handsome amount of Rs71.918 billion in first half of the current fiscal year. The profits of post office department/PTA stood at Rs33 million, interest of public sector enterprises and others Rs3.678 billion, dividends Rs34.389 billion, defence Rs30.180 billion, citizenship, naturalization and passport fee Rs3.394 billion, development surcharge on petroleum Rs28.839 billion, development surcharge on gas Rs8.510 billion, discount retained on crude oil Rs5.967 billion, royalty on oil and gas Rs25.812 billion and others Rs43.765.