Fiscal deficit may soar to six percent.

Byline: ZAHEER ABBASI & SOHAIL SARFRAZ

The fiscal deficit may go to 6 percent of the GDP for the current fiscal year due to expected shortfall in revenue collection of the Federal Board of Revenue and possible failure by provinces to give 0.7 percent surplus budget, it is learnt.

Sources said the issues of farm tax, fiscal deficit and the FBR capacity to collect revenue were discussed in detail during the meeting of the Economic Advisory Council (EAC) here on Thursday. The EAC was of the view that it would be unlikely for the ministry of finance to achieve 5.5 percent fiscal deficit as it may not be possible for the provinces to give estimated 0.7 percent budget surplus in the prevailing economic situation and revenue collection may not exceed Rs 1530 to Rs 1535 billion in the current fiscal year against the revised target of Rs 1588 billion.

The EAC …