FEDERAL BUDGET - Ministry of Finance

1 Government of PakistanFinance DivisionIslamabad2021-22 FEDERALBUDGETANNUALBUDGETSTATEMENTP reface The Annual BUDGET Statement containing estimated receipts and expenditure in terms of Article 80(1) of the Constitution of Islamic Republic of Pakistan 1973 is being laid before the National Assembly of Pakistan for financial year 2021-22, which will also be transmitted to the Senate of Pakistan as required under Article 73(1). The statement fulfills the requirements of Article 80(2) of the Constitution, showing separately the charged expenditures and other expenditures to be made from the FEDERAL Consolidated Fund.

2 It also distinguishes expenditure on revenue account from other expenditure. Section 4 of the Public Finance Management Act, 2019 provides that the FEDERAL Government shall lay before National Assembly, Annual BUDGET Statement including a statement of the purpose and estimates for each demand for grant, statement of contingent liabilities of the FEDERAL Government and statement of fiscal risk. Moreover, as per Section 8 of the Act, a statement of estimated tax expenditure of the FEDERAL Government shall be laid before the National Assembly. All these statements have been made part of Annual BUDGET Statement.

3 Furthermore, under Sections 5 and 10 of the Fiscal Responsibility and Debt Limitation Act, 2005, a Medium Term Budgetary Statement and Statements of Responsibility are also required to be laid before National Assembly, which have also been made part of the Annual BUDGET Statement. Revised Estimates for FY 2020-21 included in Demands for Grants and Appropriations (Part-I) were based on the data extracted from the SAP System as on 5thMay, 2021, whereas the revised estimates included in this 'Annual BUDGET Statement' have been prepared on the basis of information collected as on 7th June, 2021.

4 The actual reconciled data will be finalized and made available on the web site of Finance Division by September, 2021. Yusuf Khan Secretary to the Government of Pakistan Finance Division Islamabad, the 11th June, 2021 of Expenditure (Schedule-I) ..Demand for Grants and Appropriations for Expenditure2020-21 and 2021-22 Object-Wise Classification (Schedule-II) ..met from FEDERAL Consolidated Fund ..Demand for Grants and Appropriations for Expenditure 2021-22 Statement of Contingent Statement of Fiscal Medium Term Budgetary Statement of Estimated Tax of Account Receipts ..Summary of Receipts.

5 Revenue Receipts ..External Receipts ..Capital Receipts ..12-4567-10 Capital Expenditure ..Public Account Expenditure ..Estimated Charged and Other Expenditure Summary of Expenditure ..Current Expenditure on Revenue Account ..Current Expenditure on Capital Account ..Development Expenditure on Revenue Account ..Development Expenditure on Capital Account ..BudgetRevisedBudgetEstimatesEstimatesE stimates2020-212020-212021-22B14,963,000 4,690,9995,829,0004,963,0004,690,9995,82 9,0002,043,0001,788,9992,182,0002,920,00 02,902,0003,647,000C21,610,2261,704,4432 ,079,965B0326,30018,43129,503C01210,7081 77,188265,839C02645,616727,524684,105C03 727,602781,3011,100,51836,573,2266,395,4 427,908,965E41,326,0521,701,1841,439,879 E02147,167184,120273,352E031,178,8851,51 7,0631,166,527 57,899,2788,096,6269,348,845 62,222,9192,286,8592,747,7922,157,5002,2 01,2502,693,33820,66727,74931,63644,7515 7,85922,817710,122,19710,383,48412,096,6 36 8215,619 (81,318)

6 74,195 227,279(60,897) 58,137 (11,660) (20,421) 16,058 910,337,81610,302,16712,170,831 102,873,7192,704,1643,411,858117,464,097 7,598,0038,758,973 12242,472 242,000 570,000 13 Privatization Proceeds100,000 - 252,000 14983,545 649,256 681,336 158,790,1148,489,25910,262,309 Cash Balance built up by the ProvincesCredit from Banking SectorTotal-Resources (11+12+13+14)LoansGrantsProject Loans & Grants Outside PSDPT otal Internal and External Receipts (5+6)External ReceiptsSUMMARY OF RECEIPTS(Rs in million)Object CodeDescriptionTax Revenue ReceiptsReceipts from Civil Administration etcMiscellaneous ReceiptsTotal Revenue Receipts (1+2)Capital Receipts FBR TaxesDirect TaxesIndirect TaxesNon-Tax Revenue ReceiptsIncome from Property and EnterpriseRevenue ReceiptsAs per Section22 ofthe Public Finance Mangement Act,2019,the operationof the FEDERAL ConsolidatedFund and the Public Account of the Federation vests in the Finance Division FEDERAL receipts are categorizedas Revenue Receipts, Capital Receipts, Public Account ReceiptsandExternal Receipts.

7 All these receipts, except Public Account Receipts become partof the the FederalConsolidated Fund. Levies and FeesRecovery of Loans and AdvancesDomestic Debt Receipts (Non Bank) - NetPublic Account ReceiptsDeferred Liabilities (Net)Deposit and Reserves (Net)Gross FEDERAL Resources (7+8)Less Provincial Share in FEDERAL TaxesNet FEDERAL Resources (9-10)Total Internal Receipts (3+4)1 BudgetRevisedBudgetEstimatesEstimatesEst imates2020-212020-212021-22 BFBR Taxes4,963,000 4,690,999 5,829,000 B012,043,0001,788,9992,182,000 Taxes on Income2,032,557 1,779,924 2,171,839 Worker's Welfare Fund3,969 7,193 8,054 Worker's Profit Participation Fund3,750 1,380 1,545 Capital Value Tax (CVT)

8 2,724 502 562 B022,920,0002,902,0003,647,000 Customs Duties640,000700,000 785,000 Sales Tax1,919,0001,927,000 2,506,000 FEDERAL Excise361,000275,000 356,000 14,963,0004,690,9995,829,000 B015B015 Tax Revenue(Rs in million)Total Tax Revenue (i+ii) TaxesB020-22B023B024-25 Object CodeDescriptionTax TaxesB011 Tax Revenueis administeredby the FEDERAL Boardof Revenue (FBR), which comprises Customs Dutyand Inland Direct Taxes, Sales Taxand FEDERAL Excise may alsobecategorizedas Direct Taxesand Indirect Taxes. Direct Taxes comprise Income Tax, Workers WelfareFundand Capital Value Tax.

9 Indirect Taxes include Sales Tax, FEDERAL Excise Dutyand Customs Duty. Asnapshot of BUDGET Estimates is as under;REVENUE RECEIPTSR evenue Receipts constitute major component of total FEDERAL resources. Revenue Receipts may becategorized as Tax Revenue Receipts and Non-Tax Revenue receipts, which are largely derived from thefollowing sources:-2 BudgetRevisedBudgetEstimatesEstimatesEst imates2020-212020-212021-22Ca)26,300 18,431 29,503 5,8005,000 9,000 20,47513,401 20,453 2530 50 C01b)210,708177,188265,8392,0002,419 4,000 27,00033,893 45,436 Regulatory Authorities542585 508 120,18899,963125,53226,84324,963 35,532 93,34575,000 90,000 60,97840,32890,363C02c)645,616727,524684 ,1053,4404,303 7,114 620,000700,000 650,000 18,43118,431 20,274 1,1981,850 2,695 1,0971,900 2,538 1,4501,040 1,485 C03d)

10 727,602781,3011,100,5182,0962,287 2,980 22,51712,000 20,000 25,00025,000 35,000 Foreign GrantsCitizenship, Nationalization, Passport and Copyright Fees C036 Services ReceiptsSocial ServicesMiscellaneous ReceiptsEconomic Services ReceiptsSurplus Profit of State Bank of PakistanDefence Services ReceiptsLaw and Order Receipts C02211 C025 C026 C027 C028-29 C031-35 C019 DividendReceipts from Civil Administration and Other FunctionsGeneral Administration ReceiptsC01008 PTA (3/4G License Renewal Fees) C01012C012-18 Mark up Receipts C012 Mark up Receipts (Provinces) C021-24C013-18 Mark up Receipts ( PSEs & Others)Income from Property and EnterpriseC01008 Surplus Profit of PTA REVENUE RECEIPTSNon-Tax Revenue(Rs in million)Object CodeDescriptionNon Tax RevenueAs per Section 2(ma)of the Public Finance Management Act,2019(amended), Non-Tax Revenue meansrevenues receivedby the Governmentin termsof clause (1)of Article78 ofthe Constitutionand therecurring incomeof the Government from investmentsand provisionof servicesbut does notincludethose mentionedin clause (3)of Article160 ofthe Constitution.