Higher Markup Payments Pose Significant Challenges to Fiscal Management: Finance Ministry

The Finance Division Tuesday said growing pressure on expenditures due to higher markup payments presents significant challenges for fiscal management. In its Monthly Economic Update & Outlook for April 2024, the finance division said that the fiscal performance indicates some positive developments on the back of significant growth in revenues but warned of the risk posed by higher markup payments. The report said that the government is stringently focusing on fiscal consolidation measures to ensure fiscal discipline. Consequently, the primary balance surplus continues to improve during the first eight months of FY2024. It said that overall, the positive momentum in key indicators, coupled with prudent fiscal management, lays a strong basis for better growth prospects. Furthermore, the government’s measures to improve various sectors are poised to navigate challenges and will lead the economy towards higher and sustainable growth.