Fiscal limitations are likely to increase during the current year because of the rise in fiscal deficit beyond the projected amount of Rs685 billion with foreign component of Rs183 billion. This has been attributed to: (a) increasing doubts about the Federal Board of Revenue’s (FBR) ability to collect tax revenue of Rs1.667 trillion, (b) erosion of Rs1.4 trillion as a result of corrupt practices in tax revenue collection, (c) providing subsidies to the cash- strapped public sector enterprises (PSEs), (d) high cost of debt servicing and, (e) large quasi-fiscal expenditures such as payment of power sector’s circular debt.