Instability of Federal Government Revenues and Expenditures in Pakistan (Monetary AND FISCAL Policy) (Report‪)‬

INTRODUCTION As in many other countries, in Pakistan too, the government provides a number of social goods and services. For this purpose, the government has to spend huge amounts of money every year. Federal government expenditures in real terms have grown at an annual average rate of 8.84 percent during the past fifteen years. Also, the share of the federal government expenditures in GNP has increased from 20.93 percent in 1971-72 to 25.19 percent in 1985-86. The main component of the federal government expenditures is of the recurrent type and is devoted to defence, civil administration, debt servicing, health, education, roads, and other such services. At present, the level of social goods and services provided by the government is not considered satisfactory. Moreover, public demand for them is on the increase due to an increasing population growth rate and rising standards of living in the country.