Process No.

5: Preparation of Forward Estimates/Ceilings

Development of Fiscal Framework will be enable the departments of Finance
and Planning & Development to create indicative ceilings (recurrent and
development budgets) for the next 3-years for each department separately.
These ceilings are indicative in nature as they may be modified by the
Cabinet approval or at the time of approval by the National Economic
Council. Ceilings are presented as per the following table:
Department
s

Actual
Expenditure

Original
Budget

Revised
Budget

Projections

Previous
Year

Current
Year

Current
Year

Budg
et
Year

Budget Budge
Year
t
+1
Year+
2

Department
A
Process No.6: Development of Budget Strategy Paper
The Budget Strategy Paper (BSP) is government policy document presented
in the Cabinet prior to the presentation of the annual budget. The purpose of
the BSP is to:
1. Set out the macroeconomic context
2. Analyze the pressures on the budget
3. Ensure that the allocation of public funds through the provincial budget
is strategically aligned with the priorities of the government
4. Provide a framework for consultation between the technical and the
political levels of the government
The BSP is developed jointly by the departments of Finance and Planning &
Development.
The BSP encloses Medium-Term Fiscal Framework and departmental
indicative ceilings.
The BSP is presented by the Secretaries of Finance and Planning &
Development to Chief Secretary and Ministers for Finance and Planning.
Process No. 7: Presentation of Budget Strategy Paper to the
Cabinet

The BSP is presented in the Cabinet meeting in the shape of a detailed

document and a summary.
Process No.8: Issuance of Forms and Ceilings to departments
The Finance Department will issue Budget Call to all departments. The
Planning & Development Department will issue Guidelines for Annual
Development Plan.
Budget Call Circular
Guidelines for Annual Development Plan (ADP)
Ceilings
Process No.9: Update of Strategic Plan
Based on the ceilings, the Strategy Plan prepared by the departments (as
detailed in process No.2) will be updated. Generally high priority policy
initiatives will be allocated higher amount of financial resources.
Process No.10: Filling-in of Forms
There are primary three types of forms to be filled:
1. Forms annexed with Budget Call Circular- the LD Forms ( to be filled
by the department)
2. Forms annex with Budget Call Circular the BM Forms (to be filled by
DDOs, Project/Schemes
3. Annual Development Plan (ADP) proformas required for each
project/scheme separately for on-going and new schemes.
Process No.11: Pre-Budget Consultations
Each year the department of Finance and Planning & Development hold prebudget consultations with public and civil society organizations.
In the pre-budget consultations, the participants are encouraged to come up
with innovative ideas that could be included in budget proposals. Report of
these consultations in forwarded to Finance Department and Planning &
Development Department.
Process No.12: Detailed Review of Budget Demands
Departments of Finance and Planning & Development will form a committee
to review budget demands of each department separately. A schedule of
these meetings in included in the Budget Call Circular.

During these meetings, technical discussions are held with departmental

Secretaries on the Strategic Plan, and Budget Call Circular Forms. Budgetfile prepared during Process No.10 can be used here.
The departments of Finance and Planning & Development may recommend
changes in the detailed budget and / or approve the budget demands.
Process No.13: Review of Projects/Schemes
The Planning & Development department will undertake a detailed review of
project/schemes to understand their current completion status, approved
processes, approved schemes and their budget allocations, status of
unapproved schemes, foreign and domestic funding, milestones for the
upcoming year
Process No.14: Presentation of ADP to Cabinet
The ADP (Annual Development Plan) is presented in the Cabinet. The
Secretary Planning & Development Department presents the main contours
of the ADP and informs Cabinet Ministers of the key policy priorities and the
linkage of approved projects with those policies
Process No. 15: Presentation of ADP to National Economic Council
The Chief Minister apprises the NEC of the provincial priorities and new
strategic initiative to be taken in shape of ADP.
Process No. 16: Submission of final filled Budget Forms
These forms are sent to the Computerization Wing in Finance Department.
The Computerization Wing is responsible for entering the detailed forms in
the PIFRA system.
Process No. 17: Finalization of Budget Books
Through the computerized system, the Budget section of the Finance
Department produces the following key budget books:
1. White Paper to the Budget- summarizing policy priorities, recurrent
budget, development budget, loans and debts, and future liabilities
2. Demands for Grants and Appropriations for recurrent and
development budgets separately
3. Annual Budget System

Separately, three other types of information are also included:

1) Finance Bill detailing taxation proposals
2) Medium-Term Budget Estimates for Service Delivery (based on
output-based budgeting methodology)
3) Budget Speech in both English and Urdu languages.
Process No.18: Submission of final filled Budget Forms
The Planning & Development Department produces Annual Development
Plan consisting of projects/schemes for which budget is allocated.
The Annual Development Plan is developed using the ADP forms.
Process No. 19: Presentation of the Budget in the Cabinet and
Provincial Assembly
The budget is finally presented in the Cabinet and Provincial Assembly. The
Finance Minister makes a budget speech in the Assembly before the budget
debate begins.
As per the Constitution, the Governor signs the Finance Bill, and the Chief
Minister approves the Schedule of Authorized Expenditure (expenditure
budget by Demands for Grants) after vote of approval by the Assembly
The Rules and Privileges of the Provincial Assembly specify the rules and
procedures for the budget session.