CONTENTS Page CHAPTER- 1 REVIEW OF THE BUDGET 2009 - 10 Salient Features Comparison - Budget and Revised Estimates Resources

Internal External Expenditure CHAPTER- 2 THE BUDGET 2010 - 11 Salient Features Comparative Budgetary Position CHAPTER- 3 RESOURCE POSITION Internal Resources Revenue Receipts Tax Revenue Non Tax Revenue Capital Receipts Self - financing of PSDP by Provinces Change in Provincial Cash Balance External Resources CHAPTER- 4 PROVINCIAL SHARE IN FEDERAL REVENUE RECEIPTS CHAPTER- 5 CURRENT EXPENDITURE General Public Services Defence Affairs and Services Public Order and Safety Affairs Contd......... CONTENTS Economic Affairs Environment Protection Housing and Community Amenities Health Affairs and Services Recreational, Culture and Religion 27 28 28 29 30 1 1 2 3 3 5 6 7 7 8 9 10 10 11 12 13 14 14 15 16

23 24 25 26

Education Affairs and Services Social Protection

31 32

CHAPTER- 6 SUBSIDIES CHAPTER- 7 PUBLIC SECTOR DEVELOPMENT PROGRAMME (PSDP) 2010 - 11 CHAPTER- 8 LOANS AND INVESTMENTS Current Loans Development Loans Current Investment CHAPTER- 9 MEDIUM TERM BUDGETARY FRAMEWORK (MTBF) Macroeconomic Indicators BUDGET 2010 - 11 AT A GLANCE OVERALL FISCAL DEFICIT 2010-11

33 35

38 38 39 40 41

42 43 45

PREFACE
The Budget in Brief is a summary of the Federal Budget 2010-11. It is designed to provide essential budgetary information about the revenues and expenditures at a glance. Detailed information is available in other budgetary documents. The federal budget is being prepared in accordance with the budgeting and accounting classification system that has been approved by the Government of Pakistan as an integral part of the New Accounting Model. The three years medium-term indicative budget ceilings for the current and development budgets as approved by the Cabinet were issued to all Principal Accounting Officers of the Federal Government. A new budget preparation method, called the ‘Output Based Budgeting’ has been introduced, which presents the federal budget by services and effects of services on target population and links these with performance indicators and targets over the three years period. Medium Term Macroeconomic Indicators covering a period of three years have been included in this document. For the convenience of readers, some additional information regarding subsidies, loans and advances has been shown separately. Another facility is that after approval of the Parliament, the Annual Budget Statement, Explanatory Memorandum and Estimates of Foreign Assistance will be placed on the Ministry of Finance website www.finance.gov.pk for unrestricted access by all. I hope that this document will prove to be useful and handy portal into the Budget 2010-11.

Salman Siddique Secretary to the Government of Pakistan Finance Division Islamabad, the 5th June, 2010

CHAPTER - 1 REVIEW OF BUDGET 2009- 10 SALIENT FEATURES
1.1 The budget 2009-10 had the following salient features: a) The total outlay of budget 2009-10 was Rs 2462 billion. This size was 22.5% higher than the size of budget estimates 2008-09. b) The resource availability during 2009-10 was estimated at Rs 2299 billion against Rs 1836 billion in the budget estimates of 2008-09. c) Net revenue receipts for 2009-10 were estimated at Rs 1352 billion indicating an increase of 21.7% over the budget estimates of 2008-09. d) The provincial share in federal revenue receipts was estimated at Rs 655 billion during 2009-10 which was 15.3% higher than the budget estimates for 2008-09. e) The capital receipts (net) for 2009-10 were estimated at Rs 191 billion against the budget estimates of Rs 221 billion in 2008-09. f) The external receipts in 2009-10 were estimated at Rs 510 billion. This showed an increase of 70% over the budget estimates for 2008-09. g) The overall expenditure during 2009-10 was estimated at Rs 2462 billion of which the current expenditure was Rs 1699 billion and development expenditure at Rs 803 billion. Current expenditure showed an increase of 3% over the revised estimates of 2008-09, while develpoment expenditure increased by 68.1% in 2009-10 over the revised estimates of 2008-09. h) The share of current expenditure in total budgetary outlay for 2009-10 was 69% as compared to 79% in revised estimates for 2008-09. i) The expenditure on General Public Services (inclusive of debt servicing transfer payments and superannuation allowance) was estimated at Rs 1189 billion which was 70% of the current expenditure. j) The size of Public Sector Development Programme (PSDP) for 2009-10 was Rs 646 billion. While for Other Development Expenditure an amount of Rs 157 billion was allocated. The PSDP showed an increase of 54% over the revised estimates 2008-09.

1 SUMMARY 2009 .957 77.2 In the light of features outlined above. a comparison has been drawn between budget estimates and revised estimates 2009-10 in the following Table: TABLE .911 510. Operational Shortfall in Expenditures PRIVATIZATION PROCEEDS BANK BORROWING .396.413 2.310 1.585.271 183.000) 89.298.117 (40.987 72.448 1.462.351 144.568 577.k) The provinces were allocated an amount of Rs 200 billion for budget estimates 2009-10 in their PSDP.017.496.463 1.000 118.193 646.667 260.146 2.109 External Resources EXPENDITURES Current Expenditure PSDP Other Development Expenditure Est.788.000) 19.000 157. 1.699.813 1.351. l) An amount of Rs 25 billion was allocated to Earthquake Reconstruction and Rehabilitation Authority (ERRA) in the PSDP 2009-10.985 2.400 1.513 172.10 (Rs in Million) Budget 2009-10 Revised 2009-10 Classification RESOURCES Internal Resources Revenue Receipts (Net) Capital Receipts (Net) Financing of PSDP by Provinces Change in Provincial Cash Balance 2.557 2.989 190.302 (60.918.255 510.

944 655.3 The internal resources come through revenue receipts (tax & non-tax) and net capital receipts.891 B NON .014 1.898 115.600 927.351. while Table-3 provides the details of net capital receipts.277 1.10 ) (Rs in Million) Budget 2009-10 Revised 2009-10 Classification A TAX REVENUE Direct Taxes Indirect Taxes 1.007.051. TABLE .580 337. Table-2 provides the budget and revised estimates for 2009-2010 in respect of tax and non-tax revenue.400 942.206 655.960 513.493.913 2.217 1.RESOURCES: INTERNAL RECEIPTS 1.046 540.428 2.667 Revenue Receipts (Gross) Less Provincial Share Revenue Receipts (Net) .560 565.646 118.396.719 281.989 115.TAX REVENUE Income from Property and Enterprises Receipts from Civil Administration and Other Functions Miscellaneous Receipts - 113.646 568.2 REVENUE RECEIPTS ( 2009.483.

461 315 11.234 190.753 190. The following Table provides the details: TABLE .3%.8%.971 94. Disbursements CAPITAL RECEIPTS (NET) (I-II) . an increase of 3.747 49.495 42.Recovery of Loans .271 II.420 260. These are now estimated at Rs 1396667 million in the revised estimates 2009-10 i.4 The tax revenue recorded a decrease of 0.750 94.10 ) (Rs in Million) Budget 2009-10 Revised 2009-10 Classification I. 1.7% over budget estimates while the non-tax revenue increased from Rs 513646 million to Rs 568898 million or an increase of 10. the net revenue receipts were estimated at Rs 1351989 million in the budget 2009-10.Floating Debt B.000 234.6 The capital receipts (net) expected to register an increase of Rs 69758 million or by 36.513 375.691 184.1. Federal Consolidated Fund .998 47.Permanent Debt .776 38. Public Account 284.e. CAPITAL RECEIPTS (NET) 1.6% in the revised estimates 2009-10.5 After deducting the provincial share.3 CAPITAL RECEIPTS (NET) ( 2009.694 115. Receipts ( A + B ) A.

526 172.EXTERNAL RESOURCES 1.438 510. EXTERNAL GRANTS TOTAL ( I + II ) .570 66.250 145.104 127.2%.4 EXTERNAL RESOURCES ( 2009. d. Project Loans Programme Loans EURO Bonds Other Aid Tokyo Pledges 444.10 ) (Rs in Million) Budget 2009-10 Revised 2009-10 Classification I. The following Table gives the details: TABLE . EXTERNAL LOANS ( a to e ) a. The external resources for 2009-10 were budgeted at Rs 510413 million which are now projected at Rs 577985 million in revised estimates or an increase of 13.333 41.217 90.768 577.250 41.078 65. e.413 450. c. This increase is mainly due to receipts from Other Aid.065 140.985 II.7 The Government obtains foreign loans and grants to use for capital and development expenditure. b.017 121.975 77.

Operational Shortfall in PSDP Total Expenditure ( A + B ) 1.017.117 (40.743 378.944 763.743 4.Est.641 84.697 31.117 646.081 342.569 3.310 2. .535 4.193 1.135 37.5 CURRENT AND DEVELOPMENT EXPENDITURES ( 2009.471.385 80.506 31.462.8 The budget estimates of current and development expenditures for the year 2009-10 have been compared with the revised estimates 2009-10 in Table-5. TABLE .000) 2.585.913 34.522 6.000) 2.302 (60.302 510. Programme (PSDP) .10 ) (Rs in Million) Budget 2009-10 Revised 2009-10 Classification A.557 B.801 6. DEVELOPMENT .189.EXPENDITURE 1.Other Development Expenditure .000 118.000 157.255 1.Public Sector Dev.484 3.608 415 1.926 415 1.699.384 568. Culture and Religion Education Affairs and Services Social Protection 1.9 The overall expenditure at Rs 2585557 million in revised estimates 2009-10 shows an increase of 5% over budget estimates 2009-10. CURRENT General Public Services Defence Affairs & Services Public Order and Safety Affairs Economic Affairs Environment Protection Housing and Community Amenities Health Affairs & Services Recreational.

3% in 2010-11 over the revised estimates of 2009-10.CHAPTER . This shows a decrease of 24% over the budget estimates for 2009-10. b) The resource availability during 2010-11 has been estimated at Rs 2598 billion against Rs 2299 billion in the budget estimates of 2009-10.1 The budget 2010-11 has the following main salient features: a) The total outlay of budget 2010-11 is Rs 2764 billion.2 THE BUDGET 2010 . This size is 12.e. while development expenditure will increase by 25.3% higher than the size of budget estimates 2009-10. h) The share of current expenditure in total budgetary outlay for 2010-11 is 72% as compared to 78% in revised estimates for 2009-10.9% over the budget estimates of 2009-10.2%.5% of the current expenditure. f) The external receipts in 2010-11 are estimated at Rs 387 billion. Current expenditure shows a decline of less than 1% over the revised estimates of 2009-10.9% higher than the budget estimates for 2009-10. d) The provincial share in federal revenue receipts is estimated at Rs 1034 billion during 2010-11 which is 57.11 SALIENT FEATURES 2. c) Net revenue receipts for 2010-11 have been estimated at Rs 1377 billion indicating an increase of 1. . g) The overall expenditure during 2010-11 has been estimated at Rs 2764 billion of which the current expenditure is Rs 1998 billion and development expenditure at Rs 787 billion. e) The capital receipts (net) for 2010-11 have been estimated at Rs 325 billion against the budget estimates of Rs 191 billion in 2009-10 i. an increase of 70. i) The expenditure on General Public Services (inclusive of debt servicing transfer payments and superannuation allowance) is estimated at Rs 1388 billion which is 69.

External Resources 2.463 1.699.396.987 72.597. 2.109 2.117 Est.813 1.2 The comparative position of 2009-10 (budget & revised ) and 2010-11 (budget) is given in Table-6 below: TABLE .j) The size of Public Sector Development Programme (PSDP) for 2010-11 is Rs 663 billion.667 260. While for Other Development Expenditure an amount of Rs 124 billion has been allocated.211. k) The provinces have been allocated an amount of Rs.462.568 577.557 2. l) An amount of Rs 10 billion has been allocated to Earthquake Reconstruction and Rehabilitation Authority (ERRA) in the PSDP 2010-11.310 Current Expenditure 1.000) 166.271 183.000) 19.10 AND 2010 .349 325.585.302 (60.255 510.000 123.298.893 2.448 1.788.437 1.11 (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification i) RESOURCES ( a + b) a.957 77.6 COMPARATIVE BUDGETARY POSITION 2009.925 386.400 1.544 ii) EXPENDITURE - 2.496.377. The PSDP shows an increase of 30% over the revised estimates 2009-10.615 166. Operational Shortfall in Expenditure (40.146 PRIVATIZATION PROCEEDS BANK BORROWING .764.985 2.892 663.000 118.384 341.989 190.918.513 172.273 1.997.017.545 (20.351.620 2.000) 89.000 Other Development Expenditure 157.413 2.193 Development Expenditure (PSDP) 646.373 billion for budget estimates 2010-11 in their PSDP as against Rs 200 billion in 2009-10.351 144. Internal Resources Revenue Receipts (Net) Capital Receipts (Net) Financing of PSDP by Provinces Change in Provincial Cash Balance b.911 510.

989 190.918.463 1.615 166.11) 3.813 1. EXTERNAL RESOURCES TOTAL RESOURCES ( A + B ) .496.211.413 2.568 577.400 1.377. financing of Public Sector Development Programme (PSDP) by the Provinces and change in the provincial cash balance.911 510. capital receipts.925 386.349 325.1 The internal resources comprise of revenue receipts.3 RESOURCES POSITION (2010 . The overall comparative resource position for the year 2009-10 (budget and revised) and 2010-11 (budget) is given in Table 7 below: TABLE .396.273 1.987 72. INTERNAL RESOURCES Revenue Receipts (Net) Capital Receipts (Net) Financing of PSDP by Provinces Change in Provincial Cash Balance 1.7 RESOURCE POSITION (Rs in Million) Classification Budget 2009-10 Revised 2009-10 Budget 2010-11 A.298.788.620 2.597.271 183.985 2.893 B.351. The external resources come from foreign loans and grants.513 172.384 341.CHAPTER .448 2.667 260.957 77.

400 942.015 632. The provincial share in taxes for 2010-11 is estimated at Rs 1033644 million which is 57.1% over the budget estimates 2009-10.8 REVENUE RECEIPTS (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification Tax Revenue Direct Taxes Indirect Taxes 1.644 1.4 Detailed information on various components of tax revenue and non-tax revenue is given in the following Table 8 to 10.778.277 1.994 1.667 1.3 The tax revenue at Rs 1778715 million for 2010-11 shows an increase of 20% over revised estimates 2009-10.279 169.715 657.700 1.646 568.250 130.206 655.046 540. 3.898 115.560 565.985 332.719 281. are estimated at Rs 2410994 million showing an increase of 20.493. TABLE .989 1.2 The revenue receipts in budget 2010-11.8% higher than the budget estimates of 2009-10.600 927. on gross basis.913 2.944 655.014 113.007. At this level the non-tax revenue is higher by 23% when compared with the budget estimates 2009-10.377.121.580 337.891 115.INTERNAL RESOURCES REVENUE RECEIPTS 3.410.396.217 1.483.349 Non .351.051. Non-tax revenue has been projected at Rs 632279 million in 2010-11 as compared with Rs 513646 million in budget estimates 2009-10.044 2.Tax Revenue Property and Enterprises Civil Administration and Other Functions Miscellaneous Receipts Revenue Receipts (Gross) Less: Provincial Share Revenue Receipts (Net) . 3.646 118.428 2.960 513.033.

600 1.960 162.700 1. Indirect Taxes Customs Sales Tax Federal Excise Other Taxes (ICT) Airport Tax Petroleum Levy * Of which .483.531 13.700 633.000 1.208 927.640 75 110.600 544.900 540.430 70 101. Direct Taxes Income Tax Workers Welfare Tax Workers Participation Tax Capital Value Tax 1.400 942.493.000 20.000 1.600 4.800 674.000 II.800 1.861 7.380.778.9 TAX REVENUE (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification *TAX REVENUE ( I + II) I.646 164.TABLE .400 152.200 499.300 134.400 520.000 4.667.015 180.400 15.560 565.046 540.000 1.121.500 60 112.380.000 1.900 153.400 1.546 1.715 657.

173 Revised 2009-10 568.000 14.200 713 709 371 113.297 .000 8.937 15.014 1.246 28.733 811 10.000 15.000 18.850 27.10 NON .057 8.950 26.100 16.044 2.950 23.045 7.973 27.455 130.000 10.000 133.428 1.215 332.279 169.995 12.891 735 213.TABLE .032 64.229 281.267 Budget 2010-11 632.580 1.500 32.985 51.995 6.142 337.514 1.638 38.546 711 384 115.250 788 185.646 118.000 128.819 25.719 1.TAX REVENUE Income From Property and Enterprises Profits (PTA/Pakistan Post Office) Interest (Provinces) Interest (PSEs & Others) Dividends Receipts from Civil Admn and Other General Administration SBP Profits Defence Law and Order Community Services Social Services Miscellaneous Receipts Economic Services Gas Development Surcharge Discount Retained on Local Crude Oil Royalty on Oil Royalty on Gas Passport and Citizenship Fee Others Budget 2009-10 513.778 29.969 29.402 29.TAX REVENUE (Rs in Million) Classification NON .372 75.463 1.898 115.746 36.300 16.692 59.913 1.021 150.000 121.

747 49.000 10.971 231.271 380.11 Classification I.753 60.430 (6.034 163.000 (50) (10) (15) 20.000 234.461 20.489 94.975 23.000 1.520 42.694 186. Loans and Advances and Others Repayment of Short Term Credits CAPITAL RECEIPTS (NET) (I .190 26. Dollar Bearer Certificate Ijara Sukuk Bonds Special US Dollar Bonds 3.000) 55.668 260.000) 11. Federal Consolidated Fund (1+2+3) 1.000 190.482 2.000 1.776 38.753 34.821 2.691 184. RECEIPTS (A + B) A.460 325.650 28. DISBURSEMENT Government Investments.5 Capital receipts (net) in the budget 2010-11 have been estimated at Rs 325384 million against Rs 190.000 (50) (10) (15) 40.752 64. Recovery of Loans Provinces Others 2. Floating Debt Prize Bonds Treasury Bills 284.000 (50) (10) (15) (4.384 B. The details of capital receipts and disbursements are reflected in Table-11. TABLE .130 54.495) 30.014 2.699 190.000 216.460 25.863 21.873 115.513 375.998 47.000 1.144 213.11 CAPITAL RECEIPTS (NET) Budget 2009.Fund Deposits (Net) II.061 315 (73) (537) 5.000 1.P. Permanent Debt Income Tax Refund Bonds Federal Investment Bonds Pakistan Investment Bonds FEBCs FCBCs U.000 (2.890 47.234 28.400 18.000 35.536 65.000) 94.CAPITAL RECEIPTS (NET) 3.750 (73) (498) 25.396 (2.420 50. Public Account Saving Schemes G.S.10 (Rs in Million) Revised Budget 2009-10 2010.000 20.598 61.513 million in the budget estimates 2009-10 and Rs 260271 million in the revised estimates 2009-10.II) .495 23.

8 Total net transfers to provinces is given in Table-12.721 18.975 710.398 31. Self-financing of PSDP by provinces during 2010-11 has been estimated at Rs 341615 million.218 16.923 90 735.213 81.6 The provinces are able to finance their PSDP as well as improve their cash balance because of federal transfers on account of divisible pool. These are placed at Rs 1077015 million in budget estimates 2010-11 i. 3.077.9 The transfer to provinces on net basis registered an increase of Rs 12669 million in the revised estimates 2009-10.864 54.064 81. TABLE .900 26.6% over the revised estimates 2009-10. straight transfer. grants and external assistance.015 Transfer to Provinces (Net) 3.3. an increase of 51.302 42.969 16.778 167.400 697.12 TRANSFER TO PROVINCES (NET) (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification Divisible Pool Straight Transfer Special Grants/Subventions Project Aid Japanese Grant Total Transfer to Provinces Less Payments to Federal Govt. CHANGE IN PROVINCIAL CASH BALANCE 3.119.385 90 1.e.912 574.638 25.7 The provincial change in cash balance is estimated at Rs 166925 million for 2010-11 (budget).580 865.819 20.821 85.516 42.863 1.043 13 753.396 52.746 23. .130 37.500 16. Interest Payments Loans Repayments 569.

992 206 14.189 26.570 27.636 13.Tokyo Pledges .299 43.104 25.798 6.250 55. C.Corporations/Autonomous Bodies 2 Provinces PROGRAMME LOANS EURO BONDS TOKYO PLEDGES OTHER AID .526 26.Project Grants • Federal • Provinces • Autonomous Bodies .Budget Support Grants .528 26.341 43.184 94. D.217 90.985 286.250 99. EXTERNAL GRANTS .413 450.576 5. II.076 13. EXTERNAL LOANS (A to E) PROJECT LOANS (1+2) 1 Federal Government .051 172.934 64.768 15.703 29.386 46 10.Other Aid . Details of receipts from external resources are given in Table13 below: TABLE .333 41.620 B.313 46.104 121.365 2.Ministries/Divisions .13 EXTERNAL RESOURCES (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification I.666 2.900 386.Kerry Lugar TOTAL (I + II) .IMF 444.839 32.438 8.537 140.065 52.475 44.694 51.566 7.3% lower than budget estimates 2009-10.526 77.600 577.975 77.10 The budget estimates 2010-11 have been projected at Rs 386620 million which is 24.387 127.EXTERNAL RESOURCES 3.328 510. A.017 66.250 43.250 145. E.794 39.600 67.339 24.250 41.772 218 7.686 13.865 12.Islamic Development Bank .250 65.613 80.180 26.078 41.

50% 43. from the net proceeds of taxes and duties in each year shall be as under: Financial Year Percentage share 41. Custom Duty. Taxes on Sales & Purchase of goods. Export Duty on Cotton.25% 2006-07 2007-08 2008-09 2009-10 2010-11 and onward .3 The percentage share of the provinces.2 Distribution of Revenue: The Provincial Governments shall be assigned in each financial year a share equal to the percentage of the net proceeds of the following taxes and duties levied and collected by the Federal Government: (a) (b) (c) (d) (e) (f) (g) (h) Taxes on Income. The details are as follows: 4.00% 46. Federal Excise Duty excluding the Excise Duty on Gas charged at all well head.1 The NFC Award 1997 was amended under the Distribution of Revenue and Grant-in-Aid Amendment Order 2006. Wealth Tax. and Any other tax which may be levied by the federal government.4 PROVINCIAL SHARE IN FEDERAL REVENUE RECEIPTS 4.50% 42. 4.75% 45.CHAPTER . Capital Value Tax.

5 The balance shall be distributed amongst the provinces on the basis of their respective population in the percentage specified against each: Punjab Sindh Khyber Pakhtunkhwa Balochistan Total: Grant-in-Aid to the Provinces: 57. as grant-in-aid of the revenues of the provinces to be distributed amongst the provinces as per ratio specified against each province.00% 33.00% 4.4 Out of the sum assigned to the Provincial Government under Article 3 an amount equal to the net proceeds of 1/6th of Sales Tax shall be distributed amongst the Provinces at the following ratio and the Provincial Governments shall further transfer the whole of such amount to the District Governments and Cantonment Boards without retaining any part thereof: Punjab Sindh Khyber Pakhtunkhwa Balochistan Total: 50.00% 21.00% 35.85% 9.00% 4.82% 5.00% The grants-in-aid will be increased annually in line with the growth of net proceeds of divisible taxes for each year.71% 13.11% 100.36% 23.00% 100.22% 100.93% 5.6 There shall be charged upon the Federal Consolidated Fund each year a sum of Rupees twenty seven billion seven hundred and fifty million.6 {Articles 3 and 7 of Distribution of Revenue and Grant-in-Aid (Amendment) Order. 2006} provincial share in the net divisible pool would not be less than 45% in the first financial year and 50% in the last financial year. namely: Province Punjab Sindh Khyber Pakhtunkhwa Balochistan Total: Note: Amount 11. Explanation: With the arrangements contained in para 4.Allocation of Share to the Provincial Governments 4.3 and 4. .00% 34.

.

693(I)/2009. (2) It shall come into force on the first day of July. 739(I)/2005 dated 21st July. appointed a National Finance Commission to make recommendations. NOW. under Distribution of Revenue and Grantin-Aid (Amendment) Order. Short title and commencement.7 The net proceeds of divisible pool are arrived at by deducting 5% collection charges by the federal government.O."net Proceeds" means. 2006. is also transferred to the provinces in accordance with Article 161(1) of the Constitution of the Islamic Republic of Pakistan. unless there is anything repugnant in the subject or context. 2010. (a) Definitions. The GST on Services (Provincial) is also transferred to the Provinces after deducting 2% collection charges.R. after deducting 2% collection charges. AND WHEREAS the said Commission has also submitted its recommendations with regard to the said distribution.In this Order. as modified by the said Division's Notification No.O. THEREFORE. 5 of 2010 is reproduced below:"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). NFC Award 2010. 2010..8 The royalty on crude oil and development surcharge on natural gas. 2. among other matters. in pursuance of clauses (4) and (7) of Article 160 of the Constitution. duty or levy.S.(1) This Order may be called the Distribution of Revenues and Grant-in-Aid Order.R. by the Finance Division's Notification No. 2005. 4..4.9 The 7th NFC Award as given effect through President's Order No. and (b) "taxes on income" includes corporation tax but does not include taxes on income consisting of remuneration paid out of the Federal Consolidated Fund. . The royalty and excise duty on natural gas. 2009. after deducting 2% collection charges.S. the President is pleased to make the following Order:1.The federal share in the net proceeds of divisible pool for the year 2010-11 is 55% with the remainder 45% going to the four provinces. 4. the proceeds therof reduced by the cost of collection as ascertained and certified by the Auditor General of Pakistan. the President. in relation to any tax. dated 24th July. as to the distribution between the Federation and the Provinces of the net proceeds of certain taxes. is transferred to the provinces on the basis of well-head production.

Taxes on sales & purchases of goods imported. Federal excise duties excluding the excise duty on gas charged at well-head. and Any other tax which may be levied by the Federal Government. Capital value tax. 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. Wealth tax. (1) The Divisible Pool taxes in each year shall consist of the following taxes levied and collected by the Federal Government in that year. 4. (1) The Province-wise ratios given in clause (2) are based on multiple indicators. exported. namely: (a) (b) (c) (d) (e) (f) (g) (h) Taxes on income.3% 5.0% 2. (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. Customs duties. 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. manufactured or consumed Export duties on cotton. (3) After deducting the amounts as prescribed in clause (2).7% . produced. of the balance amount of the net proceeds of divisible pool taxes.3. Distribution of Revenues. Allocation of shares to the Provincial Governments.0% 10. The share of the Federal Government in the net proceeds of divisible pool shall be forty-four percent during the financial year 2010-11 and forty-two and half percent from the financial year 2011-12 onwards.

(2) The development surcharge on natural gas for Balochistan with effect from 1st July. shall be reworked out hypothetically on the basis of the formula given in clause (1) and the amount. shall be paid in five years in five equal installments by the Federal Government as grants to be charged on the Federal Consolidated Fund. Any shortfall in this amount shall be made up by the Federal Government from its own resources. 2002.(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. Payment of net proceeds of development surcharge on natural gas to the Provinces (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. 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.55% 100. 6.09% 14.00% (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. This arrangement for Balochistan shall remain protected throughout the remaining four years of the Award based on annual budgetary projections. subject to maximum of ten billion rupee.74% 24.62% 51. . 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. Payment of net proceeds of royalty on crude oil. 5. The average rate per MMBTU shall be derived by notionally clubbing both the royalty on natural gas and development surcharge on gas.

9 Miscellaneous. as grants-in-aid of the revenues of the province of Sindh an amount equivalent to 0. 1997 (P.The Distribution of Revenues and Grant-in-Aid Order.O. 10 Repeal. No.0 per MMBTU. ASIF ALI ZARDARI President. 2010 (P. Federal Government and Provincial Governments may take necessary administrative and legislative steps accordingly. 201415. if they so desired.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. Provinces would initiate steps to effectively tax the agriculture and real estate sectors. Grants-in-Aid to the Provinces: There shall be charged upon the Federal Consolidated Fund each year. Sales tax on services: NFC recognizes that sales tax on services is a Provincial subject under the Constitution of the Islamic Republic of Pakistan. and the Distribution of Revenues and Grants-in-Aid.(1) NFC also recommended increase in the rate of excise duty on natural gas to Rs." . (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. 8.e. 4 of 2010) are hereby repealed. Federal Government may initiate necessary legislation accordingly. (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. and may be collected by respective Provinces.. Order.7. (5) The meetings of the NFC may be convened regularly on a quarterly basis to monitor implementation of the award in letter and spirit.O.10. 1 of 1997). (4) The Federal Government may assist the Provinces through specific grants in times of unforeseen calamities.

14 SHARE OF PROVINCES IN FEDERAL REVENUE RECEIPTS (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification Income Tax Capital Value Tax Sales Tax & GST 1/6th of the Sales Tax Federal Excise (Net of Gas) Customs Duties Royalty on Crude Oil Royalty on Natural Gas Surcharge on Gas Excise Duty on Natural Gas GST (Provincial)** Total PROVINCE.217 220.881 143.4.667 2.037 29.251 5.170 55.061 7.588 79.144 89.894 35.049 85.257 279.630 160. 2010.593 54.338 6.270 655.697 29.129 1.395 6.630 82.643 Total 334.033.808 84. .033.398 1.490 15.277 352.961 25.516 29.588 199.081 134.10 The following table shows the estimated transfers to the Provincial Governments on account of there share in federal taxes and by straight transfers during the year 2010-2011. These shares would be revised in the light of decision taken after descussion with the provinces.645 328.512 655.644 * Inclusive 1% War on Terror ** The indicative share of GST on Services (provincial) are strictly provisional at this stage since a decision on levying a reformed GST has been deferred to 1st October.407 194.729 68.458 15.283 88.329 41.235 7.814 26. 2010.217 331.277 494.439 27.924 13.183 1.346 99.WISE SHARE Punjab Sindh Khyber Pakhtunkhwa * Balochistan 226.433 655. TABLE .826 3.907 655. The final share so determined would take effect from 1st July.921 70.359 99.

463 1. the current expenditure has been estimated at Rs 1997892 million.801 6.5 CURRENT EXPENDITURE ( 2010 .11 ) 5.842 7.697 31.263 66.664 442.359 34.608 415 1. TABLE .926 415 1.384 2.641 84. 5.15 CURRENT EXPENDITURE ( SUMMARY ) (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification General Public Services Defence Affairs and Services Public Order and Safety Affairs Economic Affairs Environment Protection Housing and Community Amenities Health Affairs & Services Recreational.471.193 1.535 4. Culture and Religion Education Affairs and Services Social Protection 1.913 34.135 37.944 1. For 2010-11.017.743 4.189.1 The revised estimates for 2009-10 on account of current expenditure have increased to Rs 2017255 million from the budget estimates of Rs 1699193 million.500 1.385 80.997.699.CHAPTER .255 1.081 342.387.0% over revised estimates 2009-10.892 TOTAL: .897 448 1.506 31.173 51.2 Following table indicates the comparative position of the budget and revised estimates of current expenditure for the year 2009-10 and the budget estimates for 2010-11.283 4. showing a decrease of 1.569 3.743 378.522 6.484 3.

263 2.017 1.16 GENERAL PUBLIC SERVICE (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification GENERAL PUBLIC SERVICE Executive & Legislatives Organs.161 17.3 The bulk of expenditure has been placed under General Public Service.e.857 1.334 132. 3. Financial Superannuation Allowance and Pension Servicing of Foreign Debt Foreign Loan Repayment Servicing of Domestic Debt Others Foreign Economic Aid Transfer Payments General Services Basic Research R&D General Public Services Administration of General Public Service General Public Services(not defined elsewhere) 1.730 99 341.797 174.408 1.236 90.267 5.857 1.763 70.1% for Defence.108.090.161 11.665 1.680 76. 69.5% of current expenditure.4 The details under General Public Service are given in Table-16.563 2.054 595.4% for Economic Affairs and 5% for other services have been allocated in the budget estimates 2010-11.083 2. The expenditure against this head has been budgeted at Rs 1387864 million i.5.418 85.664 1. while 22. TABLE .446 576.387. GENERAL PUBLIC SERVICE 5.081 939.743 1.483 .153 4.369 621.471.597 99 221.759 126.630 103 227.770 90.085 70.488 2.620 2.254 58.168 2.910 69.762 148.787 208.153 4.189.

Other major item is the transfer payments.377 27.495 (492) 378.746 176. DEFENCE AFFAIRS AND SERVICES 5.624 115.088 (1.913 1.398 110. it forms 78.5 Under General Public Service. The main heads of expenses are superannuation allowances and pensions.664 (1.289 341. the major portion gives to executive & legislatives organs.240 119.370 34.17 DEFENCE AFFAIRS AND SERVICES (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification DEFENCE AFFAIRS AND SERVICES Defence Administration Military Defence Employees Related Expenses Operating Expenses Physical Assets Civil Works Less Recoveries 342.726 111.210 107.254) .6 Details of estimates of expenditure on Defence Affairs and Services in 2009-10 (budget & revised) and 2010-11 (budget) are given below: TABLE .034 92.427 440.389 97.5.154) 442. financial and fiscal affairs.5% of the allocation of Rs 1387664 million.846 138.173 1.289 376. domestic and foreign debt servicing. At Rs 1090236 million.126 32.135 1.

385 1.263 1.5% as compared with the budget estimates 2009-10.PUBLIC ORDER AND SAFETY AFFAIRS 5.637 .744 47.483 32. The following Table provides the details.488 34.7 Under this head an amount of Rs 51263 million has been provided in the budget 2010-11 as compared with Rs 37385 million in the revised estimates and Rs 34641 million in the budget estimates 2009-10.273 81 15 92 1.760 89 17 17 1. The allocation for Police (Rs 47760 million) forms the major component under this classification which is higher by 48.18 PUBLIC ORDER AND SAFETY AFFAIRS (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification PUBLIC ORDER AND SAFETY AFFAIRS Law Courts Police Fire Protection Prison Administration and Operation R and D Public Order and Safety Administration of Public Order 34.641 1. TABLE .436 51.169 81 15 16 877 37.

773 885 . Food. This is less by 17% than the budget estimates of 2009-10.503 1.300 38.608 30. Commercial and Labour Affair Agriculture.715 6.689 858 507 1. The following Table provides the details under this head.689 666 660 1. The main reason for this reduction is elimination of subsidies.19 ECONOMIC AFFAIRS (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification ECONOMIC AFFAIRS General Economic.ECONOMIC AFFAIRS 5. TABLE .919 1.897 24. Forestry and Fishing Fuel and Energy Mining and Manufacturing Construction and Transport Communication Other Industries 84.821 468 1.926 35.8 The allocation under this head in the budget 2010-11 has been projected at Rs 66897 million.634 6.169 80.919 1.544 66.304 29. Irrigation.806 7.603 38.

9 Environment Protection has been provided with Rs 448 million for 2010-11 under Water Waste Management.842 . TABLE .842 1.ENVIRONMENT PROTECTION 5.10 An allocation of Rs 1842 million has been provided in the budget 2010-11 for community development which is higher by 21% against the budget estimates for 2009-10.522 1.801 1.801 1. TABLE .21 HOUSING AND COMMUNITY AMENITIES (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification HOUSING AND COMMUNITY AMENITIES Community Development 1.522 1.20 ENVIRONMENT PROTECTION (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification ENVIRONMENT PROTECTION Water Waste Management 415 415 415 415 448 448 HOUSING AND COMMUNITY AMENITIES 5.

11 Under Health Affairs and Services a total allocation of Rs 7283 million has been made in the budget estimates 2010-11.283 83 6.3% when compared with budget estimates of 2009-10.708 469 2 241 6.953 469 2 254 7.743 65 5.22 HEALTH AFFAIRS AND SERVICES (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification HEALTH AFFAIRS AND SERVICES Medical Products. This allocation is higher by 12. TABLE . Details are given in the following Table.484 65 5.HEALTH AFFAIRS AND SERVICES 5. Appliances and Equipment 6.408 522 2 269 Hospitals Services Public Health Services R & D Health Health Administration .

893 683 184 .RECREATIONAL.359 Recreational and Sporting Services Cultural Services Broadcasting and Publishing Religious Affairs Administration of Information Recreation and Culture 115 353 2.520 544 166 115 378 3. CULTURE AND RELIGION 3. CULTURE AND RELIGION (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification RECREATIONAL.697 4. Culture and Religion. The bulk of the expenditure has been earmarked for Broadcasting and Publishing which is more than 66% of the total allocation under this head.23 RECREATIONAL.244 604 167 151 448 2. Details are given in Table23: TABLE . CULTURE AND RELIGION 5.506 4.12 In budget 2010-11 an amount of Rs 4359 million has been provided for Recreational.

887 31.535 2.887 34.260 547 .13 The Education Affairs and Services have been provided with Rs 34500 million in the budget estimates 2010-11 as compared with Rs 31535 million under revised estimates 2009-10 and Rs 31569 million in the budget estimates 2009-10.EDUCATION AFFAIRS AND SERVICES 5.569 2.210 42 35 1.174 3.24 EDUCATION AFFAIRS AND SERVICES (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification EDUCATION AFFAIRS AND SERVICES Pre-Primary & Primary Education Affairs Services Secondary Education Affairs and Services Tertiary Education Affairs and Services Social Welfare & Special Education Division Subsidiary Services to Education Administration Education Affairs. The details are as under: TABLE .375 39 32 808 565 4.232 25. The bulk of expenditure at Rs 25210 million has been allocated for Tertiary Education Affairs and Services in budget 2010-11 which is 73% of the total allocation under this head.828 23.828 23. Services (not elsewhere) 31.372 39 32 845 566 3.500 3.

866 517 1.463 916 548 .426 517 4. TABLE .944 3.384 3.25 SOCIAL PROTECTION (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification SOCIAL PROTECTION Administration Others 3.SOCIAL PROTECTION 5.14 The social protection with Rs 1463 million in the budget 2010-11 which is lesser by Rs 2481 million as compared with budget estimates 2009-10 and also lesser by Rs 2921 million than the revised estimates 2009-10.

000 317 17.746 2.000 84.500 12.000 TCP on Imports of Sugar 25. TABLE .700 40.000 317 30.000 16.000 4.5%) for Agri.000 4. Tubewells Inter-Disco Tariff differential FATA Interest on TFCs 62.000 32.1 As a matter of public policy the Government provides current subsidies to give relief to the citizens.9% of GDP.500 25.CHAPTER .000 30. in revised estimates 200910 increased to 1.700 317 30.000 30.000 40. Table26 provides the details. .000 3.527 5.800 1.000 147.8% of GDP.000 2.000 4.5% of GDP.285 198 2. In the budget estimates 2009-10 subsidies were 0.000 10.130 KESC KESC GST KESC Tube well in Balochistan KESC on account of Tariff Differential KESC payable to PSO & PKGCL TCP 4.460 77.005 5.317 1.000 4. and in the budget estimates 2010-11 reduced to 0.000 3.000 TCP for Wheat Imports TCP for cotton operation 500 500 1130 ________________________________________________________________________________ Contd….521 306 198 31.157 10.6 SUBSIDIES 6.26 SUBSIDIES (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification WAPDA GST WAPDA WAPDA Tubewell (Balochistan) WAPDA GOPshare (12.000 10.903 6.318 2.

266 599 1.992 4.200 1.000 500 19.000 1 210 15.036 600 2.915 4.683 OTHERS PASSCO/Wheat Export/Misc PASSCO for paddy operation PASSCO for Mung operation FFC Bin Qasim Ltd.200 1. Oil Refineries Sale of Wheat in FATA Sale of Wheat. for Ramzan Package Utility Stores Corp.000 126.200 1.200 1. in Gilgit Biltistan Sevrvicing of outstanding labilities of SOPREST/GIK 3% markup Subsidy to Spinning Sector Wheat Reserved Stock R&D support to Motorcycle Industry Total Subsidies: .500 1.224 216 664 115 266 21 228. for sale of Sugar 4.500 1.012 320 2.SUBSIDIES (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification USC Utility Stores Corp. Utility Stores Corp. for Ghee Package Utility Stores Corp.721 1 439 11. Sugar etc. Rice & Tea. for sale of Pluses.000 300 185 10. for sale of Atta Utility Stores Corp.000 500 15.807 233 711 200 3.000 216 664 76 500 25 119.500 18.200 700 3.

4% over revised estimates 2009-10.2009-10.CHAPTER . - - - - .7% as compared with revised .3% of GDP in the Revised Estimates 2009-10. Special Programme has been allocated a sum of Rs 30 billion in PSDP 2010-11. Federal PSDP for the year 2010-11 has been kept at Rs 290 billion.7 PUBLIC SECTOR DEVELOPMENT PROGRAMME (PSDP) 2010-11 7. Earthquake Rehabilitation and Reconstruction Authority (ERRA) has been allocated Rs 10 billion for budget estimates 2010-11. The provincial programme for 2010-11 has been estimated at Rs 373 billion as against Rs 200 billion in revised estimates 2009-10.e AJ&K. . 7. Gilgit-Baltistan and FATA which is higher by 8.An amount of Rs 26 billion has been provided in the budget 2010-11 for the development of Special Areas i.1 For the year 2010-11 National Economic Council (NEC) has approved an overall size of Public Sector Development Programme (PSDP) at Rs 663 billion which is equal to 4.4% of the GDP compared to 3.2 The Salient features of PSDP allocation for 2010-11 are as follows: The PSDP has been raised to Rs 663 billion in the budget for 2010-11 showing an increase of 30% as against the revised estimates 2009-10 at Rs 510 billion. The share of Federal Ministries/Divisions in 2010-11 PSDP is Rs 168 billion. The Corporations' PSDP 2010-11 has been placed at Rs 57 billion indicating an increase of 11.

230 15 5.977 2.7.500 2.969 130 444 44.27 SIZE OF PSDP (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification (i) 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 29 30 31 Federal Ministries/Divisions Cabinet Division Pakistan Atomic Energy Commission Pakistan Nuclear Regulatory Authority Commerce Division Communications Division Ports & Shipping Division Culture Division Sports Division Youth Affairs Division Tourism Division Defence Division Defence Production Division Economic Affairs Division Education Division Higher Education Commission Environment Division Establishment Division Local Govt.763 1.020 1.919 21. 167.578 3. & Rural Dev.000 114 82 14.000 1.000 550 .448 17.534 447 839 266 579 450 583 48 178 7.000 500 Contd…….548 250 23.874 886 141 16.000 80 1.799 2.400 135 18.119 7.098 22.235 10.945 3. & Telecom Division Interior Division Labour Manpower & OP Division Law and Justice Division Narcotics Control Division 284.500 4.071 15.584 1.677 16 8. TABLE .654 66 1.000 1.450 3. Division Finance Division Revenue Division (FBR) Food & Agriculture Division Livestock & Dairy Development Division Foreign Affairs Division Health Industries and Production Division Information & Broadcasting Division Information Tech.887 1.500 12.3 Table-27 indicates the allocations made for federal government and provincial governments.300 450 600 6.220 508 718 5.228 247 474 145 519 354 230 75 125 3.030 10 5.500 21.772 916 1.855 4.500 18.031 135 2.566 1.156 8.619 15.100 300 600 150 800 250 200 35 100 5.000 129 225 17.551 679 190.500 1.

116 81 13.700 9.890 8.000 36.000 300 1.250 28.794 47.000 8.330 50.000 5.000 663.000 25.681 510 3.000 310.685 5.000 30.758 22.000 28.865 421.500 200 250 3.000 510.374 18.000 200.000 23.850 14.367 12.641 30.154 8.576 56.438 4.000 373.000 5.000 646.646 82 1.000 446.000 200.000 (ii) Corporations 1 2 (iii) Special Programme 1 2 (iv) Special 1 2 3 A Federal PSDP (i to iv) B ERRA Federal PSDP with ERRA C Provincial PSDP Total PSDP (A+B+C) .000 38.424 153 108 3.630 165 1.000 10.200 300.365 62.000 5.671 12.850 35.000 1.643 280.600 200 14.030 44.835 39.140 180 2.SIZE OF PSDP (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 National Reconstruction Bureau Petroleum & Natural Resources Division Planning and Development Division Population Welfare Division Postal Services Division Railways Division Textile Industry Division Science & Technological Research Division Statistics Division Special Initiative Division Water & Power Division Women Development Division Social Welfare & Special Education Housing & Works Division KESC WAPDA (Power) National Highway Authority People's Works Programme-I People's Works Programme-II Azad Kashmir Gilgit Baltistan FATA 50 2.506 3.579 8.000 25.923 35.500 100 2.000 290.751 10.800 4.271 300 12.031 344 488 5.529 6.386 17.000 10.000 25.610 5.000 30.000 623 9.

These loans are provided by the federal government for various purposes as specified in Table-28. Servants Ways & Means Advance to AJ&K Loans to Friendly Countries Loans to Employees of PNRA Junagadh & Kathiawar Cheifs Loan to PIAC for urgent requirement Loan to Printing Corporation of Pakistan Loan to UNHCR 26 2.WAPDA Loans to Govt.479 2.452 6.1 The financial assets of the federal government consist of investible funds and loans provided to the AJ&K and various agencies/institutions and government servants to enable them to meet their loans and investment requirements.293 169 4 1 33.293 500 4 1 3.CHAPTER .28 CURRENT LOANS & ADVANCES (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification 1 2 3 4 5 6 7 8 9 Loans .061 Total: 16.040 24.399 160 3.796 100 4 1 10.8 LOANS AND INVESTMENTS 8.442 6.000 6. The significance of these funds lies in the fact that they meet the financial requirements of the provinces as well as some of the federal programmes.2 Total current loans and advances have been estimated at Rs 10061 million in budget 2010-11.000 100 4.406 . TABLE . CURRENT LOANS 8.

119 97. Total development loans are estimated at Rs 97961 million in the budget 2010-11 as against revised estimates of Rs 86724 million in 2009-10. PSEs.724 45.961 Total: .DEVELOPMENT LOANS ` 8.276 52. Local Bodies and others to assist them in carrying out their development programmes.4 Table -29 shows the position of development loans: TABLE .29 DEVELOPMENT LOANS (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification 1 Cash Development Loans 55.944 52.825 111.3 Development loans and advances are granted to Provinces. 8.448 86.769 34. Government of Azad Jammu & Kashmir.842 2 External Development Loans 55.

128 .Pak Iran Joint Inv.Co.048 1 1.079 1. The comparative position is given below: TABLE .165 578 3. INVESTMENTS ON CURRENT ACCOUNT (Rs in Million) Budget 2009-10 Revised 2009-10 Budget 2010-11 Classification 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Share capital of ECO Trade Gateway foundation share subscription WB 2.677 50 517 1.100 1.691 150 1.320 500 77 291 273 23 0 7 2.CURRENT INVESTMENT 8.353 2. Islamic Development Bank (IDB) Jeddah GoP Equity Investment .30 FEDERAL MISC.160 512 2.5 The investment on current account for the year 2010-11 has been estimated at Rs 18129 million as compared to Rs 17353 million in the revised estimates of 2009-10 which is higher by 45%.264 500 77 387 411 90 5.200 2.695 50 495 500 1.100 526 3.912 7 17.200 8 18. Co.127 232 1.400 83 291 0 0 3. GoP Equity in Pakistan Dairy Dev.Ltd GoP Equity Investment NIP Karachi Contribution to Poverty Alleviation Fund Capital Stock of Islamic Corp (ICIEC) State Bank of Pakistan SME Bank Mortgage Refinance Company KESC Others Total: 12.101 512 500 1.129 GOP Contribution to SAARC KS&EW GOP Equity in PIA Payment of Mark up on loans by PASDEC 5th General Capital Increase of ADB Pak -Iran Investment Co. Co Equity from GoP .500 1.070 152 1.Pak Steel Mills Equity from GoP for Pak China Inv.

the Cabinet. MTBF will assist in improving the overall quality of the planning and budgetary processes and also enhance the quality and effectiveness of public expenditure. The committee is chaired jointly by Secretary Finance. Three year budget horizon provides the ministries the space and flexibility they need to formulate. Federal Board of Revenue. 9. the Priorities Committee was also further strengthended. The Budget Strategy Paper (BSP) is developed by two working groups. which is a macroeconomic forecasting tool. This component will help in enhancing fiscal discipline and linking the Government's strategic priorities with the budget. The BSP is a two-staged process. Secretary Planning & Development and Secretary Economic Affairs Division. 'Output based budgeting' is the new method of budget preparation introduced by the Finance Division. plan and implement policies that focus on public service delivery or 'outputs'.2 The MTBF is designed to focus on two important components. approved the BSP1 and issuance of three year indicative budget ceilings of the current and development budgets to all Principal Accounting Officers. in its meeting of 10th February 2010. 9. Using this method. The BSP requires political endorsement.4 The 'output based budgeting' component is designed to enhance efficiency and effectiveness in Government's spending. A system that links Ministerial policy with the budget and performance indicators. In addition. results in improving service delivery performance. Federal Bureau of Stastistics and State Bank of Pakistan. The macroeconmic working group finalises the Financial Programming Framework.CHAPTER . the 'strategic' component and the 'output based budgeting' component.3 Under the 'strategic' component the Budget Strategy Paper is developed. while the BSP2 is developed to update figure. These groups have representations from the Finance Division (including Principal Economic Adviser Wing and Debt Policy Coordination Office). The BSP2 will be presented in the Cabinet with the budget. 9. when monitored on regular basis. the macroeconomic working group and the budget strategy working group. Planning & Development Division.9 MEDIUM TERM BUDGETARY FRAMEWORK (MTBF) 9. the committee reviewed both the current and development budgets to focus on service delivery. 9.5 This year.1 Government of Pakistan has initiated budget reforms under Medium Term Budgetary Framework (MTBF). the federal Ministries present their budget by services and effects of the services on target population and link these with performance indicators and targets. BSP1 is developed before the start of budget preparation cycle each year. The current budget was also discussed during the Annual Plan Coordination Committee. . 9.6 Under the MTBF.

31 Macroeconomic Indicators/Rolling Targets Items Real GDP Growth% Inflation (%) 2009-10 Estimat 4.5 19.546 22.3 54.5 11.0 -3. 9.0 5. introduction of organic budget law and embedding MTBF training courses in civil services induction and training institutes.7 1.7 This year.9 Marcroeconomic Indicators/Rolling Targets for the year 2010 -13 are given as under: TABLE .0 16 4 -5 -1.1 12.1 19.0 15 11 9 20.3 11.0 2012-13 5.8 Ministry of Finance is planning to take additional steps to further strengthen the MTFB including improving linkages with PIFRA reform (Project to Improve Financial Reporting and Auditing).1 6.8 4.2 -3.9 12.5 15.2 14. Net lending) Fiscal Deficit Revenue Deficit/Surplus Total Public Debt GDP at market prices (Rs.2 2.0 0.8 19. the Finance Division will present 'Medium Term Budget Estimates for Service Delivery' or 'Green Book' 2010-13 that will explain the services (outputs) provided by a Ministry. (incl.5 As % of GDP at mp Total Revenue Tax Revenue FBR Tax Revenue Total Expenditure Current Expenditure Development Exp.8 15.9 9.0 8.2 10. 9.975 14. introducing output based monitoring mechanism. further improvements in harmonisation of current and development budgets.5 9.0 2010-11 4.3 16.668 19.9.8 46.5 7.1 13.7 10. in Billion) 2011-12 Forecast 5.9 15.416 _________________________________________________________________________ . the budget to deliver those services and performance indicators and targets for the entire Federal Government.5 48.2 14.4 51.4 -4.

Net Revenue Receipts II.7 442. Expenditure Est.0 290.5 Education Affairs Service Social Protection DEVELOPMENT PSDP Federal Government Provincial Government Other Dev.6 Recreational. Bank Borrowing 166.9 166.4 TOTAL EXPENDITURE 34. Culture Services 4.6 1377.4 Expenditure 1997.BUDGET AT A GLANCE 2010. Net Capital Receipts III.0 123. Self Financing of PSDP by Provinces V.11 (Rs in Billion) Receipts ( a ) Tax Revenue* ( b ) Non-Tax Revenue Gross Revenue Receipts Less Provincial Share I. .2 51.9 0.5 766.3 * Out of which FBR collection has been estimated at Rs 1667 billion.8 7.9 1387. Operational Shortfall TOTAL RESOURCES ( I to VI) 2764. External Receipts IV.3 66.0 1033.3 2411.6 CURRENT General Public Service Defence Affairs & Services Public Order Safety Affairs Economic Affairs Environment Protection Housing and Community Health Affairs and Services 341.4 1778.4 386.0 2764.5 -20.4 1.4 325.5 1. Change in Provincial Cash Balance VI.5 663.0 373.7 632.

620 200.829 174.0% of GDP) .9 Billion (4.543 684.430 216.574 116.OVERALL FISCAL DEFICIT 2010-11 (Rs in million) Budget Estimate 2010-11 Gross External Financing Less Repayments of Foreign Debts Long Term Short Term i) Net External Financing ii) Non-Bank Financing Public Debt Public Account iii) Bank Financing Overall Fiscal Deficit Say 386.791 332.460 185.908 684.144 166.369 26.