PPI Original Text (PPI-OT) – Upward revision of Fiscal Deficit target to 4.9% of GDP for FY13 – Alfalah Securities Limited : AsiaNet-Pakistan

PPI Original Text (PPI-OT) – Upward revision of Fiscal Deficit target to 4.9% of GDP for FY13 – Alfalah Securities Limited

[ 0 ] May 31, 2012 | | Share:

Karachi, May 31, 2012 (PPI-OT): The government has revised the fiscal deficit target to 4.9% of GDP from 4.2% projected earlier to incorporate additional expenses of PkRs 161 bn on account of high anticipated subsidies to the power sector, increase in salaries of government employees and expenditures pertaining to campaigning in the election year.

Out of the total additional expenses, PkRs 100 bn would be utilized for special programs outside the frontier of the Public Sector Development Plan (PSDP) as the government intends to adopt populist measures in the election year and spend a considerable amount in the development of PPP’s constituency. Alfalah Securities Limited believes the fiscal deficit target being set by the government is quite optimistic, wherein Alfalah Securities Limited expects the fiscal deficit to reach 5.5-6% of GDP in FY13.

Category: Brokerage

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