First two years of PTI: Lowest development spending in decade, 46% increase in per capita debt

The per capita debt of Pakistan has jumped to Rs175,000 at the end of last fiscal year — a 46 per cent increase within two years, the Ministry of Finance told the National Assembly.

In the Fiscal Policy Statement of 2020-21, the finance ministry admitted that the government violated the Fiscal Responsibility and Debt Limitation (FRDL) Act of 2005 by failing to reduce the federal fiscal deficit to 4% of the size of national economy, reported Express Tribune.

The federal deficit stood at 8.6% of GDP, the report said.

According to the fiscal statement, the current expenditures were at 28-year high level in FY19-20, whereas the development spending was the lowest in a decade in terms of total size of the economy. “Total expenditures in terms of the size of economy were at the highest level in 21 years — at 23.1% of GDP,” it reported.

The report mentioned that the public debt was recorded at Rs36.4 trillion at the end of June 2020 which means per person debt increased by Rs21,311 or 14% in the last one year. The debt ratio was formulated on the assumption of the total population of 208 million.

In June 2018, the total public debt was Rs24.9 trillion and the finance ministry at that time worked out the per capita debt at Rs120,099. In the first year of the PTI government, there was a 28 per cent increase in the per capita debt, while in the second the debt rose by 14 per cent.