FEDERAL BUDGET - Ministry of Finance

1 Government of PakistanFinance DivisionIslamabad2021-22 FEDERALBUDGETBUDGETINBRIEFF inance DivisionIslamabad, the 11th June, 2021 RevisedEstimatesforFY2020-21includedinDe mandsforGrantsandAppropriations(Part-I)w erebasedonthedataextractedfromtheSAPS ystemason3rdMay, 'BudgetinBrief'havebeenpreparedonthebasi sofinformationcollectedason06thJune,2021 , available on the web site of Finance Division by September, concise and simple information for clear ,themeasurestakenbytheGovernmentduringth elasttenmonthsofCurrentFinancialYear(CFY )forrecoveryandstabilization,thechalleng eofCovid-19andGovernmentresponse to combat it. Furthermore, the BUDGET approach is also briefly explained.

2 'BudgetataGlance' , ,grantsandtransfersalongwithbreak-upofcu rrent/ ,thedetailofprovincialshareinFederaltaxe sarealsoavailable. Statement and Explanatory Memorandum on FEDERAL ,budgetbooks,includingtheBudgetinBrief, BUDGET for FY to Government of PakistanYusuf KhanPage11-333-46 Table - 2:781010-111213131414-15151616-181920202 1-222424-2526-2829 Table - 18: Revenue ReceiptsTable - 19: Non Tax Revenue ReceiptsTable - 20: Details of Divisible Pool Taxes (Transfers to Provinces)Table - 21: Capital Receipts (Net)SubsidiesTable - 13: Grants and TransfersPart-IV :-Fiscal Deficit & Financing in BUDGET 2021-22 Table - 14: Table - 15: Current Loan and AdvancesCurrent Investments Table - 3: BUDGET Estimates of FY 2021-22 Table - 4: Tax ReceiptsTable - 5.

3 Non Tax Revenue ReceiptsTable - 6: Details of Divisible Pool Taxes Function Wise ExpenditureTable - 7: Capital Receipts (Net)Ten Months (July-April) Performance for FY 2020-21 Part-II :-Table - 1: BUDGET 2021-22 at a GlancePart-I :-Part-III :-Table - 12: Main Objectives of BUDGET 2021-22 COMPARISON OF BUDGET ESTIMATES (DETAILED BUDGET ESTIMATES)The BUDGET Strategy for FY 2021-22 Table - 16: Development Loan and AdvancesTable - 17: Distribution of PSDPT able - 9: External ResourcesTable - 10: Current ExpenditureTable - 11: C O N T E N T SKey Priorities of the FEDERAL Government for FY 2021-22 Public Account (Net)Table - 8: PageTable - 22: 30 Table - 23: 30-313132(1)32-33(2)33(3)33(4)34(5)34(6) 34(7)35(8)35(9)36(10)36 Table - 26: 37-38 Table - 27: 39-42 Table - 28: 42-43 Table - 29: 43-44 Table - 30: 4445-4647 External ResourcesC O N T E N T STable - 24: Current ExpenditureTable - 25: Function Wise ExpenditureSocial Protection Development Loan and AdvancesTable - 32: Expenditure Outside PSDP Defence Affairs and Services Public Account (Net)PSDP 2021-22 Current Loan and AdvancesCurrent InvestmentsTable - 31.

4 Public Order and Safety Affairs Economic Affairs Environment Protection Housing and Community Amenities Health Affairs and Services Recreation, Culture and Religion Education Affairs and Services General Public Service SubsidiesGrants and TransfersPART - Ia)b)c)d)e)f)g)h)i)j)k)a)b)c)d)Inclusive and sustainable economic growthPro-poorinitiativesandsocialsafety netthroughtheEhsaasProgramme'sverticalan dhorizontal expansionPM s initiatives including Kamyab Jawan and Kissan Programmes Impact mitigation of Covid-19, and the continuation of the Stimulus PackageReduction in inflation and price control and monitoringIncreased development spending for more job creationCircular debt financing and power subsidies Pakistan provisional GDP growth rate for FY 2021 is estimated to be against the targeted growth of through the policy initiatives undertaken during FY 2020-21.

5 Key Priorities of the FEDERAL Government for FY 2021-221 SupportoftheHousingSectorandtheConstruct ionIndustrythroughNayaPakistanHousing Scheme and SME support programsPakistan Remittances Initiatives and other schemesRevenue mobilization without new taxesThe nominal GDP for FY 2021 is projected to increase from Rs45,567 billion to Rs47,709 Economic Stimulous of trillion announced in March 2020 has been extended for the FY 2021 and an amount of Rs155 billion has been released to mitigate the socio economic impacts of Covid 19 ,ithasfacednumerouseconomicchallenges, 's priorities are as follows:Facilitating expatriates remittances and savings through Roshan Digital Account Ten months (July-April) performance for FY 2020-21 WhileapprovingthebudgetestimatesfortheFY 2020-21,itwasimperativetocontroltheadver seeconomicimpactsofCovid19 Pandemic,managetwindeficits,recoverandst abilizetheeconomy, objectives, the achievements of the first ten months of FY 2020-21 are as under.

6 E)f)g)h)i)j)k)l)m)n)o)p)q)WorldBankrecog nizedEhsaasEmergencyCashProgrammeasamong stthetopfoursocial protection interventions in the world in terms of numbers of people ,FY2020-21postedasurplusof$ ( % of GDP) against a deficit of $ bn ( % of GDP) last year. $ ($ ).OnYoYbasis, $ ,2021($ , 2020).Remittancesgrewsignificantlyby $ $ $ ,FY2020-21 duringsameperiodlast for last year. , ,thusregistered a significant successfully raising USD billion. TheinflationbasedonConsumerPriceIndex(CP I)duringJul-Apr,FY2020-21isdown to as against during the same period last , ,303 bn last year. , FY 2020-21, against of GDP last ,againstthe deficit of billion last ,FY2020-21, ' the same period last , bn during the same period last year, a growth of 43%.

7 R)s)t)1)2)3)4)5)a)b)c)d)e)TheIMFandPakis tanhaveresumedthe$ livelihoods in the Covid 19 Pandemic .Inflowsofforeignexchangethroughthe RoshanDigitalAccount (RDA)crossedthe$1 billion mark in a short span of time after the launch of the sratingagencyupgradedPakistan'soutlookto Stable from underreviewfordowngrade (inAugust,2020).FitchaffirmedPakistan' Objectives of BUDGET 2021-22 Expeditious disposal of refund claims Increased Development Funding by M/o PD&SIThe Prime Minister Special InitiativesSustainable economic growthStrikingabalancebetweenfiscaldefic itsduetoCovid19andboostinggrowthoftheeco nomy3 The BUDGET Strategy for FY 2021-22 TheBudget2021-22isagrowthbudgetitisbased onawellthoughtoutstrategytoboosttheecono micgrowthearlieroutlinedintheMediumTermB udgetaryStrategyPaperforFY2021-22toFY202 3-24,whichgaveaclearroadmapofthestrategi cpriorities,revenueandspendingpoliciesof theGovernment,andwasapprovedbytheFederal Cabinet in April, 2021.

8 The main priorities of the FEDERAL Government for FY 2021-22 are: Optimal mobilization of revenue Resource mobilization with required changes in tax structureSuccessful continuation of the IMF programKeeping primary balance at a sustainable levelProtectionofsocialspendingundertheE hsaasProgramtosupportvulnerablesegments of the societyf)g)h)i)j)k)l)m) ,persuadingtheprovincestofulfilltheirfun dingcommitments made at the time of the merger of erstwhile FATAK eepingdevelopmentbudgetatanadequatelevel tostimulatesustainableeconomicgrowth coupled with policy support4 Carrying forward of Stimulus PackageFunding of crucial Housing initiatives including Naya Pakistan Housing project to boost the construction ,AzadJammu&KashmirandGilgitBaltistan to ensure their developmentContinuationofspecialinitiati vesledbythePrimeMinisterlikeKamyabJawan, SehatCard, Billion tree Tsunami.

9 And control of non-productive expenditureRationalizationofsubsidyregim etoprovidetargetedsubsidytothedeservings egments of the society5 PART - II7,5233,0604801,3701,168682479251001609 64VI. Privatization Proceeds900648,487 Tax Revenue (FBR)5,829 Provision for Disaster / Emergency/ CovidInterest PaymentsTOTAL RESOURCES (I to VI)1,246IV. Estimated Provincial Surplus7,909 III. Net External Receipts Running of Civil Non Bank Borrowing (NSSs & Others)1,241a) Gross Revenue ReceiptsPensionNon-Tax Revenue2,080(Rs. in Billion)RESOURCESTOTAL EXPENDITURE(A+B)8,487 Table-1 presents position of overall Resources and Expenditure for the FY 2021-22.

10 BUDGET 2021-22 at a GlanceEXPENDITURE4,497 Grants and Transfers to Provinces & Others 681 FEDERAL PSDPb) Less Provincial Share 3,412 Provision for Pay & PensionSubsidiesI. Net Revenue Receipts (a-b)6 Provision for Contingencies & Fund570B. (T-Bills,PIBs,Sukuk)Defence ServicesA. Current252 Net Lending Table - 1A) Net External Financing1,246 Multilateral & Bilateral SourcesCommercial Sources8772,492742,417C) Privatization Proceeds2523,9903698,487964 Financing64 b) Net LendingNational Saving Schemes and Others Expenditure (i+ii)(Rs. in Billion)Fiscal DeficitBank (Govt. Securities) C) FEDERAL Deficit (A-B)-3,990 Total Financing (A+B+C)Table - 2 B) Total FEDERAL A) FEDERAL Revenue (Net) 4,497 Lending (a+b) Table-2 shows Fiscal Deficit and Financing for FY ) Net Domestic Financing a) FEDERAL PSDP900 ii) Development and Net Fiscal Deficit & Financing of BUDGET 2021-22 i) Current Expenditure7,5237 BUDGET Estimates of FY 2021-22-3,420 Overall Fiscal Deficit as % Revenue for FEDERAL Government Primary DeficitGross Revenue (FBR+NTR)Provincial Surplus5701,6106,573-2,8743,7007,137242- 3,437(Rs.