The Budget in Brief is a summary of the Federal Budget 2009-10. It is meant 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. This is the first year the federal budget is being prepared using the newly adopted Medium-Term Budgetary Framework (MTBF). Under this method macro projections are made over a rolling 3-year budgetary horizon. This year, expenditure ceilings were issued to Ministries on recurrent budget after Cabinet’s approval, in line with the Government’s stated priorities. The Ministries prepared their budget accordingly. It is hoped that during the next few years the new system will further develop to improve linkages of the stated Government priorities with the allocation of public resources. Another new feature of this document is the inclusion of Medium Term Economic Framework (MTEF) covering a period of three years. For the convenience of readers, some additional information regarding subsidies, loans and advances has been shown separately. Another new facility being introduced is that the Annual Budget Statement, Explanatory Memorandum and Estimates of Foreign Assistance will be placed on the Ministry of Finance website (finance.gov.pk) for un-restricted access by all. I hope that this document will prove to be useful and handy portal into the budget 2009-10.
Salman Siddique Secretary to the Government of Pakistan Finance Division Islamabad, the 13th June, 2009
CONTENTS Page CHAPTER- 1 REVIEW OF THE BUDGET 2008 - 09 Salient Features Comparison - Budget and Revised Estimates Resources Internal External Expenditure CHAPTER- 2 THE BUDGET 2009 - 10 Salient Features Comparative Budgetary Position CHAPTER- 3 RESOURCE POSITION Internal Resources Revenue Receipts 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 Economic Affairs Environment Protection 19 20 21 22 23 24 1 1 2 3 3 5 6 7 7 8 9 9 9 13 14 14 15 16
Housing and Community Amenities Health Affairs and Services Recreational, Culture and Religion Education Affairs and Services Social Protection
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CHAPTER- 6 SUBSIDIES CHAPTER- 7 PUBLIC SECTOR DEVELOPMENT PROGRAMME (PSDP) 2009 - 10 CHAPTER- 8 LOANS AND INVESTMENTS Current Loans Development Loans Current Investment CHAPTER- 9 MEDIUM TERM BUDGETARY FRAMEWORK (MTBF) BUDGET 2009 - 10 AT A GLANCE
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CHAPTER - 1 REVIEW OF BUDGET 2008- 09 SALIENT FEATURES
1.1 The budget 2008-09 had the following salient features: a) The total outlay of budget 2008-09 was Rs 2010 billion. This was 29.7% higher than the size of budget estimates 2007-08. b) The current expenditure was estimated at Rs 1493 billion and the development expenditure Rs 550 billion. Current expenditure at this level was less by Rs 23 billion from revised estimates of 2007-08. The development expenditure increased by 20% in 2008-09 over the revised estimates 2007-08. c) The share of current expenditure in total budgetary outlay for 2008-09 was 74.3% as compared to 77.8% in revised estimates for 2007-08. d) In the current expenditure the General Public Services (inclusive of debt servicing transfer payments and superannuation allowance) occupied 62.3% of the current expenditure in 2008-09. e) The size of Public Sector Development Programme for 2008-09 was Rs 550 billion. While for Other Development Expenditure an amount of Rs 44 billion was allocated i.e. an increase of 20% over the revised estimates 2007-08.