GOVERNMENT OF PAKISTAN FINANCE DIVISION ISLAMABAD

PREFACE
The Budget in Brief presents a summary of the Federal Budget 2012-13. It is designed to provide, at a glance, the essential information on revenues and expenditures budgeted for Financial Year 2012-13. Detailed information is available in the relevant budget documents. As in the case of the previous three financial years, indicative ceilings for the current and development budgets were issued to all Principal Accounting Officers of the Federal Government for a three-year Medium Term Budgetary Framework (MTBF), which was introduced in Financial Year 2009-10. The budget estimates for Financial Year 2012-13 were then finalised in consultation with various Federal Ministries as well as Provincial Governments. The budgeting and accounting classification system used in the budget remains the same which was adopted under the New Accounting Model introduced in Financial Year 2004-05. Moreover, since Financial Year 2009-10 the Government of Pakistan is following a system of Output Based Budgeting. In conformity with this approach, the budget has been formulated in terms of service delivery (outputs) from budgetary allocations and the projected effects of these services on target populations (outcomes) over the Medium Term. Performance of Federal Government Ministries is measured on the basis of precisely defined performance indicators. Medium Term macroeconomic indicators have also been included in this document to provide the strategic economic perspective which contextualises the budget 2012-13. For the convenience of readers, some additional information regarding subsidies, loans and advances has been shown separately. After approval by the Parliament, all budget books including the Budget in Brief will be placed on the website of the Ministry of Finance: www.finance.gov.pk. I hope that this document will prove to be useful and accessible to all.

Abdul Wajid Rana Secretary to the Government of Pakistan Finance Division Islamabad, the 1st June, 2012

CONTENTS

Page Chapter 1: Review of the Budget 2011-12 Salient Features Comparison - Budget and Revised Estimates Resources - Internal Resources - Capital Receipts - External Resources Expenditure Chapter 2: The Budget 2012-13 Salient Features Comparative Budgetary Position Chapter 3: Resource Position 2012-13 Internal Resources - Revenue Receipts - Tax Revenue - Non Tax Revenue - Capital Receipts - Estimated Provincial Surplus External Resources Chapter 4: Provincial Share in Federal Revenue Receipts - NFC Award - President's Order No. 5 of 2010 - Federal Transfer to Provinces 1 1 2 3 3 4 5 6 7 7 8 9 10 10 11 12 13 14 15 16 16 17 21

_______________________________________________________________ Contd.........

CONTENTS
Chapter 5: Current Expenditure 2012-13 Current Expenditure (Summary) Comparative Position General Public Service Defence Affairs and Services Public Order and Safety Affairs Economic Affairs Environment Protection Housing and Community Amenities Health Affairs and Services Recreational, Culture and Religion Education Affairs and Services Social Protection Chapter 6: Subsidies & Grants Details of Subsidies Details of Grants Chapter 7: Loans and Investments Current Loans & Advances Development Loans and Advances Current Investment Chapter 8: Public Sector Development Programme (PSDP) 2012-13 Salient Features of PSDP Size of PSDP Outside PSDP Chapter 9: Medium Term Budgetary Framework Macroeconomic Indicators Budget at a Glance 2012-13 22 22 23 24 25 26 27 28 28 29 30 31 32 33 33 35 37 37 38 39 40 40 41
43 44 46

47

Working of Fiscal Deficit and Financing 49 Budget 2012-13 _______________________________________________________________

1

CHAPTER - 1 REVIEW OF BUDGET 2011-12
SALIENT FEATURES
1.1 The budget 2011-12 had the following salient features: a) The total outlay of budget 2011-12 was estimated at Rs 2,767 billion. However, this size increased to Rs 3,110 billion in revised estimates 2011-12 or by 12.4%. b) The resource availability during 2011-12 had been estimated at Rs 2,463 billion which declined to Rs 2,171 billion in revised estimates or by 11.9%. c) The revenue receipts (net) for 2011-12 had been estimated at Rs 1,529 billion indicating a decrease of 13.2% in revised estimates 2011-12. d) The provincial share in federal revenue receipts was estimated at Rs 1,203 billion during 2011-12 which increased to Rs 1,209 billion in revised estimates for 2011-12. e) The net capital receipts for 2011-12 had been estimated at Rs 396 billion which increased to Rs 526 billion in revised estimates 2011-12 i.e. an increase of 32.8%. f) The external receipts in 2011-12 were estimated at Rs 414 billion, which decreased to Rs 226 billion in revised estimates or by 45.4%. g) The overall expenditure during 2011-12 had been estimated at Rs 2,767 billion, out of this share of current expenditure was Rs 2,315 billion and that of development expenditure was Rs 452 billion. Current expenditure of revised estimates showed an increase of 13.7% over budget estimates of 2011-12, while development expenditure increased by 5.7%. h) The share of current expenditure in total budgetary outlay for 2011-12 was 83.7% which increased to 84.6% in revised estimates 2011-12. i) The expenditure on general public service was estimated at Rs 1,660 billion which was 71.7% of the current expenditure.

744 226.766.2 In the light of features outlined above.944.292 2.524 Revised 2011-12 2. a summary showing comparative position of budget and revised estimates for financial year 2011-12 is given in the following table-1: TABLE .664 52.109.000 54.882 413. k) The other development expenditure outside PSDP amounting to Rs 97 billion was budgeted for 2011-12.049.829 395.911 477.328.085 303.Estimated Provincial Surplus External Resources Budget 2011-12 2.732 2.631.195 - EXPENDITURE .871 97.398 121.463.137 525.816 2.377 1. Rs 430 billion was allocated to provinces. Rs 28 billion to Special Areas and Rs 10 billion to Earthquake Reconstruction and Rehabilitation Authority (ERRA).537 1. out of which Rs 157 billion to Federal Ministries/Divisions.Current Expenditure .2 j) The size of Public Sector Development Programme (PSDP) for 2011-12 was Rs 730 billion.956 300.Capital Receipts (Net) . bank borrowing was estimated at Rs 304 billion which was at lower side as compared to revised estimates 2011-12. Out of this.821 303.496 90.929 2. l) To meet expenditure.859 451. 1.1 SUMMARY 2011-12 (Rs in Million) Classification RESOURCES Internal Resources .170.314. while Rs 55 billion for development loans and grants to provinces. Federal PSDP 2011-12 was at Rs 300 billion. Rs 72 billion to Corporations.528.Revenue Receipts (Net) .759 939.652 124.363 1.Development Expenditure • Federal PSDP • Development Loans & Grants to Provinces • Other Development Expenditure BANK BORROWING .160 3. Rs 33 billion to Special Programme.

525 321.600 1.024.184 93.074. Table-2 provides the budget and revised estimates for 2011-12 in respect of tax and non-tax revenue.752 1.568 745. NON-TAX REVENUE .383 139.182 743.829 Revised 2011-12 2.279.330.Direct Taxes . TAX REVENUE .060 2.137 .208.Receipts from Civil Administration and Other Functions .321 1.582 657.000 1.017 169.Indirect Taxes B.719 249.732.528.3 RESOURCES: INTERNAL RESOURCES 1. TABLE .Miscellaneous Receipts Revenue Receipts (Gross) Less Provincial Share Revenue Receipts (Net) Budget 2011-12 2.3 The internal resources come through revenue receipts (tax & non-tax) and net capital receipts.2 REVENUE RECEIPTS ( 2011-12 ) (Rs in Million) Classification A.615 1.568 512.203.Income from Property and Enterprise .328. while table-3 provides the details of net capital receipts.448 2.536.968 197.150 1.

100 164.977 51.Floating Debt B.2%. DISBURSEMENTS NET CAPITAL RECEIPTS (I-II): . a decline of 13.591 56. Federal Consolidated Fund . the net revenue receipts were estimated at Rs 1.209 299.621 441.496 Classification I.184 million or by 22.829 million in the budget 2011-12.652 million.Recovery of Loans .652 Revised 2011-12 549.5 After deducting the provincial share.125 525.218 108.6 The net capital receipts for the year 2011-12 were budgeted at Rs 395.232 68.030 24.8%.992 175.381 209.e.267 119.137 million in the revised estimates 2011-12 i.328.4% over budget estimates 2011-12 while the non-tax revenue decreased from Rs 657. These are now estimated at Rs 1. The revised estimates are Rs 525.968 million to Rs 512.557 395.4 1. RECEIPTS ( A + B ) A.3 NET CAPITAL RECEIPTS ( 2011-12 ) (Rs in Million) Budget 2011-12 464. Public Account II.528. The following table provides the details: TABLE .Permanent Debt .1%.497 million which indicates an increase of 32.4 The tax revenue in revised estimates 2011-12 recorded a decrease of 2. CAPITAL RECEIPTS 1. 1.610 129.

236 million which are now projected at Rs 180.895 88. The following table gives the details: TABLE .509 117.5 EXTERNAL RESOURCES 1.929 Revised 2011-12 180.160 million or by 45.7 The Government obtains foreign loans and grants to use for capital and development expenditure. Tokyo Pledges d.8 External grants were also reduced from Rs 126.832 13. Project Loans b.555 4.4% in revised estimates 2011-12. Programme Loans c.523 million in revised estimates i.636 226.734 4. 1. The external loans for 2011-12 were budgeted at Rs 287.e. Other Aid II. EXTERNAL LOANS ( a to d ) a. 1. Tokyo Pledges and Other Aid.236 67.929 million which declined to Rs 226.693 million in budget estimates 2011-12 to Rs 45.693 413. EXTERNAL GRANTS TOTAL EXTERNAL RESOURCES (I + II): Budget 2011-12 287.160 .9 Overall external resources were estimated at Rs 413.2%.230 45.000 126.636 million in revised estimates 2011-12. This decline is mainly due to less receipts from Programme Loans. decline of 37.523 165.4 EXTERNAL RESOURCES ( 2011-12 ) (Rs in Million) Classification I.004 6.

243 599 1.11 The following table shows the comparative position of the budget and revised estimates of current and development expenditure for the year 2011-12: TABLE .215 59.085 54.898.513 1.759 52. General Public Service Defence Affairs & Services Public Order and Safety Affairs Economic Affairs Environment Protection Housing and Community Amenities Health Affairs & Services Recreational.609 50.602 2.Other Development Expenditure .732 DEVELOPMENT .10 The revised estimates 2011-12 of the overall expenditure are Rs 3.766.911 1.859 1.816 Revised 2011-12 2.164 451. 1.214 30.646 6.307 577 1.5 CURRENT AND DEVELOPMENT EXPENDITURE ( 2011-12 ) (Rs in Million) Classification A.130 477.631.664 121. Culture and Religion Education Affairs and Services Social Protection Budget 2011-12 2.850 72.871 2.247 39.956 300.6 EXPENDITURE 1.028 510. CURRENT B.371 45.398 3.821 303.000 97.314.651 5.179 61.Federal PSDP including ERRA .978 495.766.Development Loans & Grants to Provinces TOTAL EXPENDITURE (A + B): .816 million.109.659.4% over the budget estimates 2011-12 at Rs 2.646 4.109.732 million showing an increase of 12.

2% higher than the budget estimates for 2011-12. g) The overall expenditure during 2012-13 has been estimated at Rs 3. an increase of 20. This shows a decrease of 6.6% as compared to 84. i) The expenditure on General Public Services is estimated at Rs 1. e) The net capital receipts for 2012-13 have been estimated at Rs 478 billion against the budget estimates of Rs 396 billion in 2011-12 i.8%. b) The resource availability during 2012-13 has been estimated at Rs 2. c) The revenue receipts (net) for 2012-13 have been estimated at Rs 1.877 billion which is 71.9% of the current expenditure.6% in revised estimates for 2011-12.1% over the budget estimates of 2011-12.7 CHAPTER .8% higher than the size of budget estimates 2011-12.2 THE BUDGET 2012-13 SALIENT FEATURES 2. . This size is 15.459 billion during 2012-13 which is 21. while development expenditure will increase by 23.1 The budget 2012-13 has the following salient features: a) The total outlay of budget 2012-13 is Rs 3.612 billion and development expenditure is Rs 591 billion.e.5% over the budget estimates for 2011-12.775 billion indicating an increase of 16.719 billion against Rs 2.463 billion in the budget estimates of 2011-12.7% in 2012-13 over the revised estimates of 2011-12. d) The provincial share in federal revenue receipts is estimated at Rs 1. f) The external receipts in 2012-13 are estimated at Rs 387 billion. Current expenditure has been estimated to be lower than the revised estimates for 2011-12 by around 1%. h) The share of current expenditure in total budgetary outlay for 2012-13 is 81.203 billion.203 billion of which the current expenditure is Rs 2.

109.000 54.332. External Resources EXPENDITURE (a + b) a.Estimated Provincial Surplus b. k) The other development expenditure outside PSDP for 2012-13 has been estimated at Rs 154 billion.6 COMPARATIVE BUDGETARY POSITION 2011-12 AND 2012-13 Budget 2011-12 2.940 591.911 477. Federal PSDP has been estimated at Rs 300 billion.Development Loans & Grants to Provinces .944.188 2.398 121. l) To meet expenditure.463.774. Rs 513 billion has been allocated to provinces.377 1.292 2.611.528.779 79.859 451.328.309 1.631. Development Expenditure .8 j) The size of Public Sector Development Programme (PSDP) for 2012-13 is Rs 873 billion.548 386.999 2.664 52.829 395.2 The comparative position of 2011-12 (budget & revised) and 2012-13 (budget) is given in table-6 below: TABLE .759 939.363 1.871 97.Federal PSDP including ERRA .Revenue Receipts (Net) .314.771 154.085 303.524 (Rs in Million) Budget 2012-13 2.000 76.719.Other Development Expenditure BANK BORROWING Revised 2011-12 2. bank borrowing has been estimated at Rs 484 billion which is lower than the revised estimates of 2011-12.929 2.160 3.732 2.537 1.049. 2.879 3. Rs 36 billion to Special Areas and Rs 27 billion to Special Programmes and Rs 10 billion to Earthquake Reconstruction and Rehabilitation Authority (ERRA).956 300. out of which Rs 207 billion to Federal Ministries/Divisions.816 2.059 360.196 ii) . Current Expenditure b. Rs 80 billion to Corporations.821 303.288 483. Out of this.496 90.766.882 413.652 124.137 525. Internal Resources .810 Classification i) RESOURCES ( a + b) a.744 226.Capital Receipts (Net) .170.202.982 477.

292 Revised 2011-12 1. The overall comparative resource position for the year 2011-12 (budget and revised) and 2012-13 (budget) is given in table-7 below: TABLE .160 2.377 1.7 RESOURCE POSITION (Rs in Million) Classification A.882 413.137 525.779 79.Capital Receipts (Net) .944.929 2. EXTERNAL RESOURCES TOTAL RESOURCES (A + B): .332.170.652 124.744 226.719.548 386.463. The internal resources comprise of revenue receipts.e.363 1.9 CHAPTER .829 395. internal and external.1 There are two resources i.328.309 1. capital receipts and estimated provincial surplus.774.537 Budget 2012-13 2.3 RESOURCE POSITION (2012-13) 3.879 2.188 .982 477.528.Revenue Receipts (Net) .049. The external resources come from foreign loans and grants.Estimated Provincial Surplus B. INTERNAL RESOURCES Budget 2011-12 2.496 90.

600 1.074.968 197.575 932.924 million which is 20.328.137 Budget 2012-13 2.5% over the revised estimates 2011-12.906 million showing an increase of 27.503.568 745.773 354.575 730.331 178.060 2.Property and Enterprise . The provincial share in taxes for 2012-13 is estimated at Rs 1.Direct Taxes .982 .383 139.6% when compared with the revised estimates 2011-12.017 169.184 million in revised estimates 2011-12.384 3.Miscellaneous Receipts Revenue Receipts (Gross) Less: Provincial Share Revenue Receipts (Net) Budget 2011-12 2.568 512.732.582 657. Non-tax revenue has been projected at Rs 730.184 93.10 INTERNAL RESOURCES REVENUE RECEIPTS 3.Indirect Taxes Non-Tax Revenue .924 1.150 1.233.Civil Administration and Other Functions .208. At this level.615 1.906 1.000 1.503. 3.024. 3.829 Revised 2011-12 2.458.203.330.458.528.3 The estimated tax revenue for 2012-13 is Rs 2.774.279.525 321.7% higher than the revised estimates of 2011-12.175 197.331 million in 2012-13 as compared with Rs 512.571.575 million.233. which reflects an increase of 23.321 1.4 Detailed information on various components of tax revenue and non-tax revenue is given in the following tables 8 to 10: TABLE .000 1.182 743.2 The gross revenue receipts in budget 2012-13 are estimated at Rs 3.448 2.7% over revised estimates 2011-12.752 1.536.8 REVENUE RECEIPTS (Rs in Million) Classification Tax Revenue . the non-tax revenue is higher by 42.719 249.

Direct Taxes .000 15.000 1.074.575 247.11 TABLE .400 836.493 75 1.952.600 25.575 932.000 120.568 215.Customs .Income Tax .000 730.952.182 743. Indirect Taxes .381.571.500 1.030 139.000 Budget 2012-13 2.076.500 75 2.600 718.500 125.000 3.Sales Tax .Petroleum Levy .000 852.582 206.B.Federal Excise .503.R.000 1.000 1.700 165.000 2.000 1.807 75 1. collection is: Budget 2011-12 2.000 .279.970 69.ICT Taxes .330.568 745.Workers Welfare Fund II.000 914.600 120.000 18.9 TAX REVENUE (Rs in Million) Classification *TAX REVENUE ( I + II) I.Airport Tax * Out of which F.300 Revised 2011-12 2.024.

383 801 200.437 19.760 24.875 22.000 400 37.000 150.175 859 200. Cess Petroleum Levy on LPG Others .503 64.925 25.169 58.729 64.100 15.917 Revised 2011-12 512.674 249.448 2.719 Budget 2012-13 730.773 79.027 36.060 2.10 NON-TAX REVENUE (Rs in Million) Classification NON-TAX REVENUE Income from Enterprise Property and Budget 2011-12 657.384 321.749 980 699 810 169.800 30.719 12. Telecom.000 32.183 32.528 14.000 118.608 1.000 15.163 5.191 5.000 1.000 15.525 75.017 779 200.300 30.183 Profits Pak.773 35.500 22.739 866 530 447 139.638 42.607 354.750 24.882 22.150 8.384 2.000 22.12 TABLE .968 197.184 93.115 712 882 197. Authority Interest (Provinces) Interest (PSEs & Others) Dividends Receipts from Civil Administration and Other Functions General Administration SBP Profit Defence Services Law and Order Community Services Social Services Miscellaneous Receipts Economic Services Passport and Citizenship Fees Gas Development Surcharge Discount Retained on Local Crude Oil Royalty on Crude Oil Royalty on Natural Gas Windfall Levy against Crude Oil Gas Infrastructure Dev.331 178.388 13.000 45.796 24.050 22.404 11.

308 27.977 51.032 68.591 56.000 13. RECEIPTS (A + B) A.610 27.5 Net capital receipts in the budget 2012-13 have been estimated at Rs 477.232 149. The details of capital receipts.992 36.495 54.000 108. Recoveries of Loans & Advances .192 24.125 24.922 24.000 187. Permanent Debt .100 164.Others 2.529 22.608 3.030 97. Public Account .300 36.496 3.Deposits (Net) II.000 (5) (5) (5) (175) 155.810 54.500 6.330 36.Ijara Sukuk Bonds .000 (25) (10) (15) (683) 119.218 160.529 143. loans.Treasury Bills B.911 (Rs in Million) Revised Budget 2011-12 2012-13 549.621 441.000 82.Government Investments.II): Net Lending to Others: .058 31.171 3. Federal Consolidated Fund (1+2+3) 1.419 129.557 32. disbursements and net capital receipts are reflected in table-11.497 million in the revised estimates 2011-12.000 6. DISBURSEMENTS .125 525.652 7.421 63. Dollar Bearer Certificates .909 175.Saving Schemes . Floating Debt .227 395.771 Classification I.218 49.Provinces .627 45.11 CAPITAL RECEIPTS Budget 2011-12 464. and Advances and Others . Fund .Repayment of Short Term Credits NET CAPITAL RECEIPTS (I .592 178.Pakistan Investment Bonds . TABLE .13 CAPITAL RECEIPTS 3.200 2.546 (5) (5) (5) (150) 209.000 80.Prize Bonds .216 541.Special US Dollar Bonds 3.779 4.627 110.652 million in the budget estimates 2011-12 and Rs 525.G.084 20.P.779 million against Rs 395.087 353.U.209 299.000 90.000 125.FEBCs .008 477.381 50.S.100 37.FCBCs .267 50.

8 The net transfers to provinces are Rs 1.556 74 48.915 56.043.875 36.437 31.266. .529 1.303.239 16.511 1.744 million in revised estimates 2011-12.7 Total net transfers to provinces is given in the following table-12: TABLE .933 159.548 million for 2012-13 as against Rs 124.592.388 55.009 155.003 1.1% over the revised estimates 2011-12.882 Revised 2011-12 1. while they are estimated at Rs 1.315.638 27.Loans Repayments Transfer to Provinces (Net) Budget 2011-12 1.915 47.564 53.044 million in the revised estimates 2011-12.Special Grants/Subventions .965 15.192 1.Project Loans .545.052 145.044 Budget 2012-13 1.Programme Loans .084 1.430 38.Japanese Grant Less Payments to Federal Govt.270.830 15.959 12.Straight Transfers . showing an increase of 22. .12 TRANSFER TO PROVINCES (NET) (Rs in Million) Classification Total Transfer to Provinces .546 million in the budget 2012-13.313. 3.712 1.843 4.Interest Payments .787 78 46.Divisible Pool .14 ESTIMATED PROVINCIAL SURPLUS 3.546 3.739 65.882 million in budget estimates 2011-12 and Rs 90.063.266.632 90 42.545.984 10.6 The estimated provincial surplus has been projected at Rs 79.

000 44.000 46. Project Loans (i+ii) i Federal Government .738 9.164 413.920 1.230 4.Corporations/Autonomous Bodies ii Provinces B.1% higher than revised estimates.022 25.9 The budget estimate 2012-13 for external resources is Rs 386. which is 6.523 165.000 13.5% lower than budget estimates 2011-12 and 71.493 5 17.236 67.043 25 5.400 34.13 EXTERNAL RESOURCES (Rs in Million) Classification I.734 127.775 48.601 47.277 5. Details of receipts from external resources are given in table-13 below: TABLE .563 979 20.200 386.000 44.023 74.380 92.500 46.895 126.500 14.15 EXTERNAL RESOURCES 3.376 44.461 9.Kerry Lugar TOTAL (I + II): .879 EXTERNAL GRANTS .Commodity Aid Grants .230 6.883 19.400 8.509 34.004 41.478 93.693 9.Ministries/Divisions .230 9. Other Aid Islamic Development Bank Eurobonds Tokyo Pledges Budget 2011-12 287.929 Revised 2011-12 180.555 6.879 million. Programme Loans C.168 61.009 117.832 88.787 65.636 18.500 112. EXTERNAL LOANS (A to D) A.980 2. D.004 45.381 38.858 140.566 4.160 Budget 2012-13 274.661 70.Tokyo Pledges .356 226.170 3.Project Aid Grants • Federal Departments • Autonomous Bodies • Provinces .478 7.616 33. II.298 4.Privatization Proceeds .

3 Through this Award.e. The President.1 In Pakistan.4 PROVINCIAL SHARE IN FEDERAL REVENUE RECEIPTS NFC Award 4. provinces rely on the Federal Government for meeting their expenditure requirements. According to Revised Estimates 201112.5% from 2011-12 onwards. if any. 83. the share of Balochistan under divisible pool comes to Rs. In order to maintain inter-governmental fiscal relationship. 9. 1. 6th NFC was constituted in 2000 but it could not give the Award and its life expired in July 2005.963 billion which is based on revenue target of Rs. . Shortfall. Therefore. It has further been guaranteed that Balochistan province would receive provincial share in the divisible pool based on the budgetary projections from financial year 2011-12 onwards for the NFC period. through Presidential Order.00 billion. in order to match the share of Balochistan Province with the guaranteed figure of Rs. 4. In the financial year 2010-11. the shortfall based on Budget Estimates 2011-12 will be met by the Federal Government from its own resources. 94. the financial autonomy of the provinces has been ensured by increasing their share in the divisible pool (taxes) i. from 50% to 56% in 2010-11 and 57. based on the actual collection reported by FBR would be borne by the Federal Government itself. Federal Government paid Rs. In case of Balochistan. 7th NFC was constituted in July 2005 which gave the Award in the year 2010.2 The 5th NFC gave the Award in 1996. Accordingly. after a period of 14 years. gives legal cover to the recommendations of the NFC. The mandate of NFC is to recommend to the President for the distribution of resources between the Federal and Provincial Governments.00 billion. the share from the divisible pool has been guaranteed at Rs. Article 160 of the Constitution provides for setting up of National Finance Commission (NFC) at intervals not exceeding five years. 4. which is more than double the actual divisible pool share of financial year 2009-10. In case this revenue target does not materialise.16 CHAPTER . about 94% resources are generated as federal level whereas only 6% resources are generated by the provinces.636 billion from its own resources. 83 billion in financial year 2010-11.952.

which is reproduced as follows: "PRESIDENT'S ORDER No.5 The Recommendations of the NFC has been given legal cover through President’s Order No. 2010. as to the distribution between the Federation and the Provinces of the net proceeds of certain taxes. multiple indicators have been adopted for distribution of provincial share in the divisible pool whereas in all the previous Awards. 693(I)/2009. 2.─ (a) "net proceeds" means. 2010.O. the proceeds thereof reduced by the cost of collection as ascertained and certified by the Auditor General of Pakistan. appointed a National Finance Commission to make recommendations. dated 21st July 2005. THEREFORE. by the Finance Division's Notification No. in pursuance of clauses (4) and (7) of Article 160 of the Constitution. among other matters.17 4. 5 of 2010. and .R. 739(I)/2005.— (1) This Order may be called the Distribution of Revenues and Grants-in-Aid Order. (2) It shall come into force on the first day of July. as modified by the said Division's Notification No.O. 4. S.4 For the first time in the history. AND WHEREAS the said Commission has also submitted its recommendations with regard to the said distribution. population was the sole criterion for distribution of provincial share in the divisible pool with special grants (subventions) to smaller provinces.— In this Order. in relation to any tax. dated 24th July 2009. unless there is anything repugnant in the subject or context. 5 of 2010 AN ORDER to provide for distribution of revenues and certain grants WHEREAS in pursuance of clause (1) of Article 160 of the Constitution of the Islamic Republic of Pakistan hereinafter referred to as the Constitution. Short title and commencement. S. Definitions. NOW.R. the President. duty or levy. the President is pleased to make the following Order:— 1.

Distribution of Revenues. federal excise duties excluding the excise duty on gas charged at well-head. 3. and any other tax which may be levied by the Federal Government.0% 10.7% . capital value tax. (3) After deducting the amounts as prescribed in clause (2). 4.3% 5. exported. The share of the Federal Government in the net proceeds of divisible pool shall be forty . wealth tax.four percent during the financial year 2010-11 and forty-two and half percent from the financial year 2011-12 onwards. Allocation of shares to the Provincial Governments. manufactured or consumed. (2) One percent of the net proceeds of divisible pool taxes shall be assigned to Government of Khyber Pakhtunkhwa to meet the expenses on war on terror.18 (b) "taxes on income" includes corporation tax but does not include taxes on income consisting of remuneration paid out of the Federal Consolidated Fund.0% 2. of the balance amount of the net proceeds of divisible pool taxes. fifty-six percent shall be assigned to provinces during the financial year 2010-11 and fifty-seven and half percent from the financial year 2011-12 onwards. The indicators and their respective weights as agreed upon are:— (a) (b) (c) (d) Population Poverty or backwardness Revenue collection or generation Inverse population density 82.—(1) The divisible pool taxes in each year shall consist of the following taxes levied and collected by the Federal Government in that year. export duties on cotton. namely:─ (a) (b) (c) (d) (e) (f) (g) (h) taxes on income. customs duties. produced.—(1) The Provincewise ratios given in clause (2) are based on multiple indicators. taxes on the sales and purchases of goods imported.

Payment of net proceeds of development surcharge on natural gas to the Provinces.62% 51. Royalty on natural gas shall be distributed in accordance with clause (1) of Article 161 of the Constitution whereas the development surcharge on natural gas would be distributed by making adjustments based on this average rate. 6. Any shortfall in this amount shall be made up by the Federal Government from its own resources. The average rate per MMBTU shall be derived by notionally clubbing both the royalty on natural gas and development surcharge on Gas. subject to maximum of ten billion rupees. .─(1) Each of the Provinces shall be paid in each financial year as a share in the net proceeds to be worked out based on average rate per MMBTU of the respective province. shall be paid in five years in five equal installments by the Federal Government as grants to be charged on the Federal Consolidated Fund.00% (3) The Federal Government shall guarantee that Balochistan province shall receive the projected sum of eighty-three billion rupees from the provincial share in the net proceeds of divisible pool taxes in the first year of the Award.19 (2) The sum assigned to the Provincial Governments under Article 3 shall be distributed amongst the Provinces on the basis of the percentage specified against each:─ (a) (b) (c) (d) Balochistan Khyber Pakhtunkhwa Punjab Sindh Total: 9. shall be re-worked out hypothetically on the basis of the formula given in clause (1) and the amount.─Each of the provinces shall be paid in each financial year as a share in the net proceeds of the total royalties on crude oil an amount which bears to the total net proceeds the same proportion as the production of crude oil in the Province in that year bears to the total production of crude oil. This arrangement for Balochistan shall remain protected throughout the remaining four years of the Award based on annual budgetary projections.55% 100. (2) The development surcharge on natural gas for Balochistan with effect from 1st July 2002. Payment of net proceeds of royalty on crude oil. 5.09% 14.74% 24.

10. Sales tax on services.—NFC recognizes that sales tax on services is a Provincial subject under the Constitution of the Islamic Republic of Pakistan.0 per MMBTU." . 8. (4) The Federal Government may assist the Provinces through specific grants in times of unforeseen calamities.e. 1997 (P. No. 1 of 1997). (3) Federal Government and Provincial Governments would develop and enforce mechanism for maintaining fiscal discipline at the Federal and Provincial levels through legislative and administrative measures. and the Distribution of Revenues and Grants-in-Aid. Order.20 7. 2014-15. Miscellaneous.O.66% of the provincial share in the net proceeds of divisible pool as a compensation for the losses on account of abolition of octroi and zilla tax. if they so desired.—(1) NFC also recommended increase in the rate of excise duty on natural gas to Rs10. 4 of 2010) are hereby repealed. Repeal.O. (5) The meetings of the NFC may be convened regularly on a quarterly basis to monitor implementation of the award in letter and spirit. as grants-in-aid of the revenues of the province of Sindh an amount equivalent to 0. 9. Federal Government may initiate necessary legislation accordingly.— The Distribution of Revenues and Grants-in-Aid Order. Provinces would initiate steps to effectively tax the agriculture and real estate sectors. and may be collected by respective Provinces. (2) The NFC recommended that the Federal Government and Provincial Governments should streamline their tax collection systems to reduce leakages and increase their revenues through efforts to improve taxation in order to achieve a 15% tax to GDP ratio by the terminal year i. Federal Government and Provincial Governments may take necessary administrative and legislative steps accordingly. President. 2010 (P. ASIF ALI ZARDARI.―There shall be charged upon the Federal Consolidated Fund each year. Grants-in-Aid to the Provinces.

046 40.063. ED on NG) .962 119.861 1.476 197.393 136.259 1. DIVISIBLE POOL TAXES .14 FEDERAL TRANSFERS TO PROVINCES (Rs in Million) Classification A.GST on Services (Others) Total (A to C): PROVINCE.415 71. STRAIGHT TRANSFERS .409 191.321 585. GST) .518 22.Royalty on Natural Gas (NG) .192 51.458 44.457 21.303.587 35.924 * The indicative shares of GST on Services are provisional at this stage.596 9.279 94.504 1.395 457.208.21 4.688 1.879 32.Federal Excise (excl.Gas Development Surcharge (GDS) .Customs (excl.458.009 518.615 Budget 2012-13 1. ** Inclusive 1% War on Terror .321 Revised 2011-12 1.297 373.Excise Duty on Natural Gas (NG) C.318 34.805 14.933 407.977 112.627 86.404 85.204 1. GST ON SERVICES* .440 30.427 15.750 133.542 10.203.615 710.619 241.948 313.487 23.924 576.359 72.847 110.458.862 324.924 437.520 14.265 14.GST on Services (Telecom) . These shares would be revised and adjusted in the light of decision taken after discussions with the provinces.166 54.770 101.6 The following table shows total estimated transfers to the Provincial Governments and their share in federal taxes and straight transfers including GST on Services during the financial year 2012-13.001 63.Sales Tax (excl.052 414.583 1. TABLE . EDS) B.043.Royalty on Crude Oil .Income Tax .203.208.WISE SHARE Punjab Sindh Khyber Pakhtunkhwa ** Balochistan Total: Budget 2011-12 1.846 584.504 111.140 24.

495.912 Budget 2012-13 925.409 106.5 CURRENT EXPENDITURE ( 2012-13 ) 5.967 135.021 136.595 239.915 223.179 508.395.873 71.15 CURRENT EXPENDITURE ( SUMMARY ) (Rs in Million) Classification Interest Payment Interest on Domestic Debt Interest on Foreign Debt Pension Military Civil Defence Affairs and Services Defence Services Defence Administration Grants and Transfers Grants to Provinces Grants to Others Subsidies Running of Civil Government Pay and Allowances Others Provision for Pay and Pension Reforms TOTAL CURRENT EXPENDITURE Repayment of Long Term Foreign Debt Budget 2011-12 790.22 CHAPTER .306 96.940 TOTAL CURRENT EXPENDITURE (Including Repayments) .470 294.562 208.962 2.218 22.611.386 543.671 76.745 1.218 30.071.138 73.849 545.221 1.557 166.987 55.1 Following table-15 shows summary of current expenditure: TABLE .409 510.564 312.977 714.881 99.775 845.179 2.823 1.776 512.000 29.033 25.978 215.430 239.691 53.175 129.612 108.292 215.631.000 2.215 493.920 495.600 80.301 56.958 277.314.680 243.448 202.067 98.914 103.854 127.739 255.534 107.250 112.604 35.891 2.839 771.860 Revised 2011-12 843.000 2.078 2.

642 736 1.371 45.876.314.157 53.850 72.659.602 2.Public Order and Safety Affairs .16 CURRENT EXPENDITURE (Rs in Million) Classification .940 .243 599 1.247 39.651 5.898.340 2. TABLE .859 Revised 2011-12 1.Environment Protection .Economic Affairs .609 50.839 545.911 Budget 2012-13 1.Housing and Community Amenities .940 million.130 2.214 30.2 The current expenditure has been estimated for 2012-13 at Rs 2.215 59.631.179 61.646 4.513 1.Social Protection Total: Budget 2011-12 1.874 1.Education Affairs and Services .23 5.307 577 1.386 70.611.028 510.845 6.General Public Service .267 47.611.3 The following table indicates the comparative position of the budget and revised estimates of current expenditure for the year 2011-12 and the budget estimates for 2012-13.Defence Affairs and Services .164 2.978 495.971 million over revised estimates 2011-12 5.Recreational.646 6. showing a decline of Rs 19.855 7. Culture and Religion .Health Affairs & Services .

17 GENERAL PUBLIC SERVICE (Rs in Million) Classification Budget 2011-12 Revised 2011-12 Budget 2012-13 GENERAL PUBLIC SERVICE Executive & Legislative Organs.175 215.839 million for 2012-13. GENERAL PUBLIC SERVICE 5.Foreign Loans Repayment .680 7.390 43.898.489 312.917 96.890 6.876.854 .278 1.635 1.371 4.5 The details under General Public Service are given in following table-17. Financial .345 2.4 The bulk of expenditure has been placed under General Public Service.978 1.308.501. which is 71.622.059 1.659.7% for Public Order and Safety have been allocated in the budget estimates 2012-13.Others Foreign Economic Aid Transfers General Services Basic Research R&D General Public Services Administration of General Public Service General Public Services not defined elsewhere 1.736 2. The expenditure against this head has been budgeted at Rs 1.9% for Defence and 2.300 4.775 135.988 251.891 771.Servicing of Foreign Debt .116 129.067 80.679 2.179 714.876.572 44.409 71.Superannuation Allowances & Pensions .130 1.839 1.138 76. While 20.524 6.673 1.873 506.24 5.028 1.671 178. TABLE .622 88 294.9% of current expenditure.312 2.967 136.524 6.600 230.307 243.484 1.986 2.Servicing of Domestic Debt .962 845.

financial and fiscal affairs.303 (1.386 1.25 5.470 493.591 42.522 51.745 206.178) - Defence Administration Defence Services Employees Related Expenses Operating Expenses Physical Assets Civil Works Less Recoveries . foreign loan repayment and others.564 543. DEFENCE AFFAIRS AND SERVICES 5.876.215 1.255) 510.958 508.356 (1.839 million.179 1.309 131.7 Details of estimates of expenditure on Defence Affairs and Services in 2011-12 (budget & revised) and 2012-13 (budget) are given below: TABLE .501. the major portion goes to executive & legislatives organs.221 209.544 120.586 43.488 128.823 229.18 DEFENCE AFFAIRS AND SERVICES (Rs in Million) Classification Budget 2011-12 Revised 2011-12 Budget 2012-13 DEFENCE AFFAIRS AND SERVICES 495. Other major item is the transfer payments. At Rs 1.577 143.638 (1.6 Under General Public Service.101) 545. The main heads of expenses are servicing of domestic debt. it forms 80% of the allocation of Rs 1.283 117.116 million.123 125.

794 123 27 25 2.270 70.273 - Law Courts Police Fire Protection Prison Administration and Operation R & D Public Order and Safety Administration of Public Order .157 million has been provided in the budget 2012-13 as compared with Rs 59.850 million in revised estimates 2011-12.964 102 23 19 3. with a share of 92.8 Under the head of Public Order and Safety Affairs. an amount of Rs 70.635 61.794 million) forms the major component. The allocation for Police (Rs 64.19 PUBLIC ORDER AND SAFETY AFFAIRS (Rs in Million) Budget 2011-12 Revised 2011-12 Budget 2012-13 Classification PUBLIC ORDER AND SAFETY AFFAIRS 59.609 2.26 PUBLIC ORDER AND SAFETY AFFAIRS 5.915 64.609 million in the budget estimates 2011-12 and Rs 61.429 102 23 19 1.4%. in the total allocation under this head.401 55.471 55. The following table-19 provides the details: TABLE .850 2.157 2.

759 - 539 1. however less by 25. The allocation for General Economic. Labour Affairs Commercial & 50.360 2.299 million for revised estimates 2011-12.893 15.099 972 692 2.021 9.243 15. Forestry and Fishing Fuel and Energy Mining and Manufacturing Construction and Transport Communications Other Industries 12.887 - Agriculture.415 2.8% when compared with revised estimates 2011-12.642 22.6% than the budget estimates of 2011-12. The following table provides the details under this head: TABLE . Commercial & Labour Affairs has been increased to Rs 22.064 2.760 8. Irrigation.937 8.166 72.307 25.299 53.050 .887 million as compared with Rs 15.27 ECONOMIC AFFAIRS 5. Food.115 205 682 1.108 42. This is higher by 6.9 The allocation under the head of Economic Affairs in the budget 2012-13 has been projected at Rs 53.20 ECONOMIC AFFAIRS (Rs in Million) Classification Budget 2011-12 Revised 2011-12 Budget 2012-13 ECONOMIC AFFAIRS General Economic.168 1.642 million.

855 1855 - Community Development . which is higher by 27.602 1. TABLE .28 ENVIRONMENT PROTECTION 5.6% and 22.646 million in revised estimates 2011-12 and Rs 1. an amount of Rs 736 million has been estimated for budget 2012-13.602 million in budget estimates 2011-12. TABLE .646 1.22 HOUSING AND COMMUNITY AMENITIES (Rs in Million) Classification Budget 2011-12 Revised 2011-12 Budget 2012-13 HOUSING AND COMMUNITY AMENITIES 1.21 ENVIRONMENT PROTECTION (Rs in Million) Classification Budget 2011-12 Revised 2011-12 Budget 2012-13 ENVIRONMENT PROTECTION Waste Water Management 577 577 599 599 736 736 HOUSING AND COMMUNITY AMENITIES 5.9%.855 million has been provided in the budget 2012-13 for Community Development as against Rs 1.602 1.10 For Waste Water Management under the head of Environment Protection. when compared with budget and revised estimates 2011-12.11 An allocation of Rs 1.646 1. respectively.

Appliances - - Hospitals Services Public Health Services R & D Health Health Administration 2.435 140 70 5.23 HEALTH AFFAIRS AND SERVICES (Rs in Million) Classification Budget 2011-12 Revised 2011-12 Budget 2012-13 HEALTH AFFAIRS AND SERVICES 2.651 100 7.609 845 259 .29 HEALTH AFFAIRS AND SERVICES 5. a total allocation of Rs7.0% when compared with budget and revised estimates 2011-12.12 Under the head of Health Affairs and Services.845 million has been made in the budget estimates 2012-13.712 696 1 143 6.646 and 6.845 132 - Medical Equipment Products. Details are given in the following table: TABLE .5% and 18. which is higher by 196.

303 387 210 417 4. Culture and Religion.371 6.267 - Recreational and Sporting Services Cultural Services Broadcasting and Publishing Religious Affairs Administration of Recreation & Culture Information.6% and 16.807 701 256 .30 RECREATION.267 million has been budgeted for Recreation. CULTURE AND RELIGION (Rs in Million) Classification Budget 2011-12 Revised 2011-12 Budget 2012-13 RECREATION.142 538 274 1 503 4. CULTURE AND RELIGION 5.13 In budget 2012-13 an amount of Rs 6. 347 3.247 5.7% when compared with budget and revised estimates 2011-12 respectively. CULTURE & RELIGION 4. Overall estimates for 2012-13 are higher by 47. which is 76. Details are given in table-24: TABLE .24 RECREATION. The bulk of the expenditure has been earmarked for Broadcasting and Publishing.7% of the total allocation under this head.

267 47.675 million has been allocated for Tertiary Education Affairs and Services in budget 2012-13.111 54 95 700 513 5.14 Education Affairs and Services have been provided with Rs 47.997 54 95 743 533 5.513 4.214 4.214 million in revised estimates 2011-12. The bulk of expenditure at Rs 35.5% of the total allocation under this head.513 million in budget estimates 2011-12 and Rs 45. 4. Services not elsewhere .31 EDUCATION AFFAIRS AND SERVICES 5. The details are as under: TABLE .699 35.670 - Pre-Primary & Primary Education Affairs Services Secondary Education Affairs & Services Tertiary Education Affairs and Services Social Welfare & Special Education Div.148 45.25 EDUCATION AFFAIRS AND SERVICES (Rs in Million) Classification Budget 2011-12 Revised 2011-12 Budget 2012-13 EDUCATION AFFAIRS AND SERVICES 39.893 29.675 53 135 963 679 Subsidiary Services to Education Administration Education Affairs. which is 74.874 million in the budget estimates 2012-13 as compared with Rs 39.524 33.874 4.

32 SOCIAL PROTECTION 5.130 29. TABLE .26 SOCIAL PROTECTION (Rs in Million) Classification SOCIAL PROTECTION Budget 2011-12 1. However. which is higher by Rs 176 million as compared with budget estimates 2011-12. it is lower than the revised estimates 2011-12 by Rs 28.790 million.320 million was provided under Citizen Damange Compensation Programme (Phase-II) of flood affecttes.340 million in the budget 2012-13.164 828 337 Revised 2011-12 30. Rs 26.15 Social protection has been allocated Rs 1.796 334 Budget 2012-13 1.340 982 358 - Administration Others . In the revised estimates 2011-12.

33 CHAPTER .Pickup Receivables from FATA . they have been estimated at 0.238 45.588 350 24.000 45.000 7.000 100 870 4.700 50. in revised estimates 2011-12 they increased to 2.5% GoP Share for Agri.Adjustment of Addl. . Tubewells in Balochistan Subsidy to KESC for .Adjustment of Addl. In the budget estimates 2011-12 subsidies were 0.9% of GDP. and in the budget 2012-13.000 50.317 50.018 7.000 55. surcharge against GST .Inter-Disco Tariff Differential .Pickup Tariff Differential .5% of GDP.12.Exchange Rate Differential for USAID .1 As a matter of public policy the Government provides subsidies to give relief to the citizens.000 317 Contd….700 10.000 10.000 24.27 SUBSIDIES (Rs in Million) Classification Subsidy to WAPDA/PEPCO for Budget 2011-12 122.018 412.8% of GDP.Pickup Payable to PSO & PKGCL . Tubewells .970 120.Tariff Differential for Agri. surcharge against GST .Pickup Interest Payment for TFCs .6 SUBSIDIES & GRANTS 2012-13 SUBSIDIES 6. Table-27 provides the details: TABLE .000 238 Budget 2012-13 134.000 238 Revised 2011-12 419.

Sale of Salt in Gilgit Baltistan Total Subsidies: .952 217 1.000 12. .171 10.000 2.Wheat Reserved Stock Subsidy to Others .000 2.000 5.Sale of Sugar Subsidy to PASSCO for .074 74 4.921 255 744 5 512.Oil Refineries & OMCs / Others .Mung Operation .700 270 775 5 208.086 162 7.595 .000 2.000 9.Reimbursement of Losses on account of Rice Operation Subsidy to USC for .252 16.448 Revised 2011-12 18.Import/Export Wheat Operation .Sale of Wheat in FATA .000 9.148 1.Sale of Wheat in Gilgit Baltistan .921 255 744 4 166.455 71 4.000 4.000 4.292 Budget 2012-13 10 10 6.150 3.000 18.Wheat Operation .Paddy Operation .697 4.400 7.000 4.148 4.087 162 7.Ramzan Package .Fauji Fertilizer Bin Qasim Ltd.34 SUBSIDIES (Rs in Million) Classification Subsidy to TCP for Budget 2011-12 4.082 2.000 2.Sugar Operation .

000 255.000 300 Classification I.000 16.000 35.986 million in budget estimates 2011-12 and Rs 251.169 7.000 25.000 30.Punjab .166 7.000 25. The detail of grants to the provinces and others is given in the following table: TABLE .739 5.747 223. SPECIAL GRANTS .000 25.557 150.744 550 239.28 GRANTS (Rs in Million) Budget 2011-12 55.000 16. GRANTS TO OTHERS - Contingent Liabilities Miscellaneous Grants Pakistan Railways to meet their losses NBP Admn. Fee & PED Expenses etc.573 1.166 9.Balochistan B.371 million in revised estimates. GRANTS IN AID & MISC.562 150.467 Contd….000 1.000 30.Khyber Pakhtunkhwa . LUMP PROVISION II.880 5.000 Revised 2011-12 53. ADJUSTMENTS A.430 54.000 30.2 Grants for the year 2012-13 have been estimated at Rs 312. Budget 2012-13 56.915 5.301 million as compared with Rs 294.000 31.Sindh .739 55.970 25.915 53. of HBFCL ..776 100. etc.000 16.000 1.000 10 1.35 GRANTS 6. Remission of ZTBL loans Administration.

301 - National Internship Programme Write-off Loans of Rice Millers & Traders (Flood Affectees) of Sindh & Balochistan Grant to Provinces for Emergency Relief Lump Provision of Relief etc.000 16.621 13. GOP Contribution to President Rozgar Scheme Competition Commission of Pakistan Purchasing of Shareholding of Private Banks in FWBL Reimbursement of TT Charges on Home Remittances Pakistan Remittance Initiatives Institute of Cost & Management Accountants of Pakistan Grants to AJK Grant-in-Aid to Gilgit Baltistan Grants to Bait-ul-Maal Grants to Emergency Relief Total Grants (I + II): - .000 2.000 500 2 11.357 815 2 15.400 100 200 600 4.000 26.000 294.000 312.400 50 200 5.500 2.987 Revised 2011-12 700 9 2.36 GRANTS (Rs in Million) Classification Budget 2011-12 700 9 2.320 277.000 8.164 2.357 2 13.400 100 200 800 2.691 Budget 2012-13 345 256 9 2.

500 200 4 1 11 12. Islamabad Loans to Government Servants Ways & Means Advances to AJ&K Loans/Advances Friendly Countries Loans/Advances Employees of PNRA Junagadh & Kathiawar Chiefs Pakistan Mint Lahore Total: .007 200 4 1 9 12.007 200 4 1 11.298 8.29 CURRENT LOANS & ADVANCES (Rs in Million) Budget 2011-12 36 132 3.680 Revised 2011-12 36 132 3.2 Total current loans and advances have been estimated at Rs 12.180 Budget 2012-13 40 175 3.37 CHAPTER .791 8.7 LOANS AND INVESTMENTS 2012-13 7.520 Classification 1 2 3 4 5 6 7 8 Interest Free Loans to WAPDA GoP Loan to Printing Corporation of Pakistan. CURRENT LOANS & ADVANCES 7. These loans are provided by the Federal Government for various purposes as specified in table-29.1 The financial assets of the Federal Government consist of investible funds and loans provided to the Azad Jammu & Kashmir (AJ&K) and various agencies / institutions and government servants to enable them to meet their financial requirements.589 8.520 million in budget 2012-13. TABLE .

406 137. Public Sector Enterprises (PSEs). Government of Azad Jammu & Kashmir.252 159.30 DEVELOPMENT LOANS AND ADVANCES BY THE FEDERAL GOVERNMENT (Rs in Million) Classification Budget 2011-12 Revised 2011-12 Budget 2012-13 1 2 Development Loans & Advances External Development Advances Total: Loans & 65.3 Development loans and advances are made to Provinces. 7.894 46. Total development loans have been estimated at Rs 159.38 DEVELOPMENT LOANS AND ADVANCES 7.294 million in revised estimates 2011-12.5 Development loans and advances have been kept at Rs 46. District Governments / TMAs.6 External development loans and advances have been estimated at Rs 113.289 47.620 72. .4 Table-30 shows the position of development loans & advances: TABLE .873 million in the budget 2012-13.188 113. 7.873 7. Financial / NonFinancial Institutions.894 million in revised estimates 2011-12. and Others to assist them in carrying out their development programmes.620 million in budget 2012-13 as compared with Rs 47.294 139.695 91.252 million in budget estimates 2012-13 as against Rs 91.

210 2 20.200 98 14.273 2 11.000 2.831 59 544 1.676 50 547 1.39 CURRENT INVESTMENT 7.Co 9 GoP Equity in Pak Dairy Dev.192 1. which is higher by 23. GoP Equity in Mortgage Refinance Co.196 2. GoP Subscription for KESC Lump Provision Others Total: .000 1.400 3.500 249 3.780 5 Fifth Gen.127 165 1.200 3.000 2.31 FEDERAL INVESTMENTS ON CURRENT ACCOUNT (Rs in Million) Classification 1 Contribution towards ECO Trade 2 GoP Contribution to SAARC (SDF) 3 GoP Equity in PIAC 4 Payment of Markup PASDEC on Loans by Budget 2011-12 2.500 16 401 3.000 2.945 million in the revised estimates of 2011-12.127 160 1.780 million as compared to Rs 11.Ltd 10 11 12 13 14 15 16 GoP Equity in Investment NIP Karachi Investment in HBFCL's Equity GoP Investment in SME Bank Ltd. Capital Increase of ADB 6 Islamic Development Bank (IDB) 7 GoP Investment-Peoples Steel Mills 8 Equity from GoP for Pak China Inv.7%.500 45 379 3.945 Budget 2012-13 2. TABLE .7 The investment on current account for the year 2012-13 has been estimated at Rs 14.649 Revised 2011-12 2.Co.127 160 1. Table-31 provides comparative position.840 54 544 1.000 1.

40 CHAPTER . Earthquake Rehabilitation and Reconstruction Authority (ERRA) has been allocated Rs 10 billion in PSDP 2012-13. The provincial development programme for 2012-13 has been estimated at Rs 513 billion as against Rs 430 billion in revised estimates 2011-12.8 PUBLIC SECTOR DEVELOPMENT PROGRAMME (PSDP) 2012-13 8.6% of GDP in the Revised Estimates 2011-12. An amount of Rs 27 billion has been provided in the budget 2012-13 for Special Programmes as compared with Rs 39 billion in revised estimates 2011-12.3%.4% than revised estimates 2011-12. 8. The share of Federal Ministries / Divisions in 2012-13 PSDP is Rs 207 billion indicating an increase of 40.3% over revised estimates 2011-12. showing an increase of 19. Federal PSDP for the year 2012-13 has been kept at Rs 360 billion which is higher by 18.1% over revised estimates 2011-12.1 For the year 2012-13 National Economic Council (NEC) has approved an overall size of Public Sector Development Programme (PSDP) at Rs 873 billion which is equal to 3.7% of the Gross Domestic Product (GDP) compared to 3. - - - - - - . The Corporations' PSDP 2012-13 has been placed at Rs 80 billion indicating an increase of 2.2 The Salient features of PSDP allocation for 2012-13 are as follows: The size of national PSDP has been raised to Rs 873 billion in the budget for 2012-13 showing an increase of 19% as against the revised estimates 201112 at Rs 734 billion.

000 31.616 22.552 36.41 8.NHA) Ports & Shipping Division Pak.800 3.427 295 446 1.692 1. Justice & Parliamentary Div.200 1.311 1.920 22.877 37.970 150 793 1.32 SIZE OF PSDP Budget 2011-12 156.378 1.371 15.563 47.000 654 142 325 400 200 311 8 412 227 140 Classification A.757 918 1.510 3.337 9.000 10.168 13.000 2.396 2. Budget 2012-13 206.800 775 612 6. Federal Ministries/Divisions 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Water & Power Division (Water Sector) Pak.119 1.178 1.937 15. Revenue Division (FBR) Petroleum & Natural Resources Div.846 1.591 2. TABLE .200 807 268 787 2.021 9.3 The following table-32 indicates details of the size of Public Sector Development Programme (PSDP). Atomic Energy Commission Finance Division Railways Division Planning & Development Division Higher Education Commission Industries Division Production Division Interior Division Defence Division Housing & Works Division Cabinet Division Science & Tech. Textile Industry Division Statistics Division .138 5.778 737 334 10. Research Division Law.205 2.192 39.449 6.468 33.147 1.916 1.975 14.327 256 16 448 350 136 272 34 333 71 202 Contd…….136 22.455 425 172 744 350 285 534 34 630 150 252 (Rs in Million) Revised 2011-12 147.798 27. Nuclear Regulatory Authority Ministry of Foreign Affairs Narcotics Control Division Establishment Division Information & Broadcasting Div. IT & Telecom Division Defence Production Division Commerce Division Communications Division (excl.758 10.

D.138 27.000 430.000 C.000 36.000 Revised 2011-12 157 381 55 41 2.055 12.539 26.382 29. 37 Federal Tax Ombudsman B.000 290. Provincial PSDP Total National PSDP (A to F): Budget 2011-12 161 677 70 0 0 72.262 11.402 303.039 16.444 52.000 730.363 11.000 22.000 873.000 5.000 360.664 430.000 300.400 32.097 6.638 3.664 Budget 2012-13 212 495 135 126 2.157 292.000 28.617 10.000 5.000 10.732 27. Corporations 1 WAPDA (Power) 2 National Highway Authority (NHA) Special Programme 1 People's Works Programme-I 2 People's Works Programme-II Special Areas 1 Azad Jammu & Kashmir 2 Gilgit Baltistan 3 FATA Total Federal PSDP (A to D) E.778 7. 36 National Heritage & Integration Div.947 790 264 0 0 78.000 28.000 10.269 10.42 SIZE OF PSDP (Rs in Million) Classification 29 Economic Affairs Division 30 National Food Security & Research Division 31 Ministry of Climate Change 32 Human Rights Division of Professional & 33 Ministry Technical Training 34 Capital Admn & Development Div.047 10.855 792 195 75 25 80. .900 33. 35 Inter Provincial Coordination Div.000 733.000 513.500 39.016 8.500 35.095 38.000 350. ERRA Federal PSDP including ERRA F.650 50.

000 70.000 5.288 Classification .Subsidy to TCP for Import of Urea Fertilizer .Citizen Damage Compensation Programme (Phase II) .000 500 2.000 26.Relief.Grants for Reconstruction in Afghanistan .000 154.000 500 2.Export Investment Development Fund .4 The other development expenditure outside Public Sector Development Programme (PSDP) has been kept at around Rs 154 billion in the budget for 2012-13 showing an increase of 26.000 9.500 12.000 40 1.000 50.000 10.Misc.Loans to Pakistan Poverty Alleviation Fund .000 20 10.085 Reconstruction Revised 2011-12 2.7% over revised estimates 2011-12 and 58.768 15. TABLE -33 DEVELOPMENT EXPENDITURE OUTSIDE PUBLIC SECTOR DEVELOPMENT PROGRAMME (Rs in Million) Budget 2011-12 45 2.PM Fiscal Relief Package for FATA/PATA/KPK .802 7.Benazir Tractor Support Program . Grants Total: .982 500 1. Projects & Schemes in Flood Affected Areas of Provinces .Grants to SME Sector Development Program .271 121.000 40 3.000 3.000 10.Crops Loan Insurance .747 50.43 OTHER DEVELOPMENT EXPENDITURE OUTSIDE PSDP 8.000 97.Lump for Other Misc.500 917 44.9% over budget estimates 2011-12.000 0 14.000 & 5.000 10. Table-33 provides the details. Rehabilitation Security of IDPs .SME Development Support Fund .Grants for Pakistan Poverty Alleviation Fund .759 Budget 2012-13 3.Benazir Income Support Program (BISP) .

the Federal Government has improved its budget preparation process. 9. Over the past 2 years the Federal Government has made significant progress in the implementation of the reforms arising through the Medium Term Budgetary Framework (MTBF). • Based on the macroeconomic environment. The revised budget preparation process includes.2 Through the MTBF. which is also shared with Parliamentary Standing Committees on Finance and Revenue and political parties.44 CHAPTER .1 This is the third year of implementation of Medium-Term Budgetary Framework (MTBF) after its approval by the Cabinet in February 2009. As per the Government's policy priorities the Finance and Planning Divisions work out medium-term Indicative Budget Ceilings for each Principal Accounting Officer. Equally significant. and this is presented to Parliament in the form of the "Green Book" which accompanies the budget submission.9 MEDIUM-TERM BUDGETARY FRAMEWORK (MTBF) 2012-13 9. the Finance Division articulates its policy priorities and prepares a Medium-Term Fiscal Framework. • The Finance Division issues Budget Call Circular and forwards 3-years Indicative Budget Ceilings for recurrent and development budgets separately to line Ministries. a system of results-oriented budget preparation has been successfully implemented across the Federal Government. • The Finance and Planning Divisions prepare a Medium-Term Macroeconomic Framework in consultation with various Government Ministries / Divisions and the State Bank of Pakistan. • These analytical pieces presented to the Cabinet through a paper called 'Budget Strategy Paper'. . The paper is also shared with Parliamentary Standing Committees on Finance and Revenue and political parties. This has included the establishment of the framework for medium term budgeting (the Medium Term Fiscal Framework) and the adoption of the practice of preparation and submission for approval by Cabinet of an analytical Budget Strategy Paper. The Green Book sets out in detail the results which each and every line ministry is expected to achieve through the use of public funds and defines indicators for measurement of those results.

In this regard. 9. which has been approved as part of the New Framework for Growth by the National Economic Council in May 2011. and c) become an Apex monitoring and evaluation organization to regularly report performance of the Government against stated strategic plans. b) work with Finance Division to introduce the process of strategic planning and monitoring in selected Government organizations. Ministries / Divisions prepare their budgets that are quality assured by the Finance and Planning Divisions. the Finance Division will take additional steps to strengthen linkages of MTBF with PIFRA (Project to Improve Financial Reporting and Auditing) including output-based budget preparation and output-based expenditure monitoring using the PIFRA system.3 For the management of public finances the Finance Division has also drafted a draft 'Public Finance and Administration Act' that it intends to lay in the Parliament for enactment. from the next year. The draft Act is proposed as per the Article 79 of the constitution that requires an Act to regulate public finances. • The Annual Plan Coordination Committee (APCC) discusses the public sector investment with the Federal Government and Provincial Governments. Planning and Economic Affairs Divisions jointly chair the Priorities Committee meetings that discuss policy and budget priorities with each Principal Accounting Officer.5 Also. the Planning Commission will.45 • Based on the Indicative Budget Ceilings. a) enhance its mandate to focus on national planning and not just the public sector projects. The MTBF provides fundamental platform to introduce Results Based Management. • The National Economic Council (NEC) approves the Public Sector Development Programme (PSDP) of the Federal and Provincial Governments.4 In addition. 9. 9. the Government intends to further improve the budgetary processes by introducing Results Based Management. The aim is to delegate the authority of planning and financial management to the Principal Accounting Officers and improve focus on achievement of results. • The finalized budget is presented in the Cabinet for endorsement and Parliament for appropriation. . • The Secretaries of Finance.

1 3.0 20.0 11.3 17.655 14.6 10.4 17.6 -4.0 3.9 10.7 10.6 -3.002 14.5% of GDP .0 -0.46 9.4 18.2 9.5 2014-15 5.9 -7.0 Budget 2011-12 Revised 2011-12 Budget 2012-13 4.5 23.7 21.041 12.4 60.6 30.3 3.5 56.2 27.9 50.3 16.3 9. In Billions) * Fiscal Balance excluding debt consolidation of power and food arrears works out at 5.FBR Tax Revenue .2 0.Current Expenditure .5 4.6 10.Development Expenditure Fiscal Balance Revenue Balance 13.9 2.8 4.654 14.4 -4.6 20.Tax Revenue .1 3.7 2.5 Real GDP Growth (%) Inflation (%) 4.2 13.34 Medium-Term Budgetary Statement Forecast 2013-14 4.3 8.4* -3.3 56.2 53.7 11.2 12.0 14.7 0.7 -0.2 19.3 3.5 2.Non Tax Revenue Total Expenditure .3 11.0 11.7 14.759 Total Public Debt GDP at market prices (Rs.6 Macroeconomic Indicators / Rolling Targets for 2012-15 are provided below: TABLE .1 10.5 (as percentage of GDP unless otherwise indicated) Total Revenue .8 8.7 13.3 9.1 4.4 -4.

960 TOTAL EXPENITURE (A+B) 50 154 2. Net Capital Receipts (Non Bank) III. Net Revenue Receipts (a-b) II.960 *Out of which FBR Taxes: Rs 2.396 926 Net Lending Other Dev. Expenditure TOTAL RESOURCES (I to V) 2.459 1. Bank Borrowing 2.775 Pension Defence Affairs & Services Grants and Transfers 487 135 80 Subsidies Running of Civil Government Provision for Pay & Pension 484 B. External Receipts (net) IV. Estimated Provincial Surplus V. DEVELOPMENT Federal PSDP 209 240 35 564 360 129 545 312 A.504 730 3.47 BUDGET AT A GLANCE 2012-13 Rs in billion RECEIPTS Tax Revenue* Non-Tax Revenue a) Gross Revenue Receipts b) Less Provincial Share I. CURRENT Interest Payments EXPENDITURE 2.234 1.381 billion .

48 WORKING OF FISCAL DEFICIT AND FINANCING BUDGET 2012-13 Rs in billion Working Deficit A) Federal Revenue (net) B) Total Federal Expenditure (i+ii) i) Current Expenditure ii) Development and Net Lending (a+b+c) a) Federal PSDP b) Other Development Expenditure c) Net Lending 1775 2960 Financing of Deficit Gross External Loans Less Repayments 387 252 2396 564 Long Term Foreign Loans Short Term Foreign Loans 216 36 360 154 i) Net External Financing ii) Domestic Financing (a+b) 135 971 50 a) Bank Financing of which SBP Financing 484 0 487 299 188 1105 4.105 -4.7% Total Financing of Deficit (i+ii) % of GDP .7% C) Federal Deficit (A-B) Est. Provincial Surplus -1184 80 b) Non Bank Financing Public debt Public Account Overall Fiscal Deficit % of GDP -1.

Sign up to vote on this title
UsefulNot useful