Govt blamed for fiscal deficit

ISLAMABAD: Government’s expenses consistently on the rise and if the trend goes on it will only lead to wider budget deficit. This was expressed by Governor State Bank, Shahid Hafeez Kardar while briefing Senate’s Standing Committee on Finance here Tuesday.  Senate Standing Committee meeting was chaired by Senator Ahmed Ali.

Governor State Bank of Pakistan told the committee if government expenditures remain on the higher side, then fiscal deficit may reach to 6 per cent of the gross domestic product. Governor SBP informed that during the current fiscal revenues were increased by 7 per cent whereas government expenses rose by 9 per cent.
Kardar added that government has borrowed Rs374 billion for its expenses from the central bank, whereas for the purchase of commodities Rs366 billion more had been borrowed while Rs368 billion extra also loaned for public sector entities. Governor central bank said that government still paying monthly Rs20 billion subsidy on power while Rs29 billion annual subsidy being paid on urea. On the occasion Federal Secretary Finance told the Committee that subsidies on power sector and security-related expensed are the biggest ingredients to the rising inflation, added that circular debt in the power sector has reached to Rs145 billion so far.

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MQM opts for Opposition

Govt loses majority in NA; PM maybe asked for fresh vote of confidence
* Now the ball is in PML-N court, say analysts  l Altaf Hussain telephones political leaders
* MQM terms POL price hike back-breaking for masses; says landlords should be taxed

Staff Reporter/ Agencies

KARACHI: A sever blow was dealt to PPP-coalition government on Sunday when Muttahida Qaumi Movement — largest coalition partner — announced to carve itself out of alliance citing several reasons, adding government never gave an ear to MQM’s advices, henceforth Prime Minister Syed Yousuf Raza Gilani has lost his mandate in the House as government left with 158 members on its side, while Opposition numbers fattens to 174.

It is likely that today (Monday) Prime Minister may be asked to take a fresh vote of confidence, where political analysts say that it would be a tall task for PM Gilani to prove his majority.
According to the press briefing of MQM leaders, the decision to sit in the Opposition was taken by MQM’s Coordination Committee’s meeting held simultaneously in Karachi and London.

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Posted in: Assembly,Faisal,media,MQM,National,National Assembly,PM,PML,Prime Minister,Senate,that