Tax reforms to bring down fiscal deficit
Govt pursuing strategy of revenue mobilization and expenditure rationalization.
The Government is pursuing a strategy of revenue mobilization and expenditure rationalization to bring down the fiscal deficit to below four per cent to gross domestic product (GDP) during the current financial year.
Under the strategy, the Government will further streamline the tax concessions and exemptions introduced under Statutory Regulatory Orders, reform the tax administration, focus tax compliance and establish the Tax Policy Research and Analysis Unit to raise tax to GDP ratio.
The government will continue strengthening frameworks for the public debt and financial management by reducing energy subsidies and restructuring or privatizing the loss making Public Sector Enterprises.
The Government is also committed to keep public debt to GDP ratio on a downward trajectory during the current fiscal year through effective fiscal and prudent debt management.