Annual Economic Review of 2021-22 3.6 Public Finances The salient features of the federal budgetary outcome for 2021-22 are presented in Table 3.8. Table 3.8: Federal Budgetary Outcome, 2021-22 2020-21 Total Tax Revenues 6,269 Tax Revenues 4,764 Non-Tax Revenues 1,505 Transfer to Provinces 2,742 Net Revenues Receipts 3,527 Total Expenditure 7,245 Current Expenditure 6,349 Development Expenditure 789 Statistical Discrepancy 107 Federal Budget Deficit-3,716 Provincial Surplus+313 Overall Budget Deficit-3,403 Primary Surplus/Deficit-653 Overall Budget Deficit as% of GDP-6.1 Source: PBS 2021-22 7,328 6,142 1,185 3,589 3,739 9,350 8,452 701 197 -5,610 +350 -5,260 -2,077 -7.9 (Rs in Billion) g(%) 16.9 28.9 -21.3 30.9 6.0 29.0 33.1 -11.2 84.1 51.0 11.8 54.6 218.1 The target budget deficit for the year was 6.1 percent of the GDP. This has been substantially exceeded by almost 30 percent and the year has closed with a deficit of 7.9 percent of the GDP, the highest ever. A number of factors have contributed to this big failure. First, non-tax revenues have declined by 21 percent, due particularly to substantially lower revenues from the petroleum levy. Second, current expenditure has shown an unprecedented increase of 33 percent, due largely to the more than doubling of the outlays on subsidies and grants. Overall, the year, 2021-22, has closed with a relatively high GDP growth rate facilitated by expansionary monetary and fiscal policies. However, this has led to extremely large budget and current account deficits, which will have to be brought down in 2022-23. 45