PREFACE - finance.gov.pk

1 PREFACE budget in Brief presents an abridgement of the federal budget 2018-19. It provides aggregated information on revenues and expenditures, budgeted for fiscal year 2018-19 alongwith budget estimates and revised estimates for the outgoing fiscal year 2017-18. Detailed information is available in the relevant budget documents. Budgeting and accounting classification system used in the budget remains the same, which was adopted under the New Accounting Model introduced in fiscal year 2004-05. The Medium Term Budgetary Framework (MTBF) process, initiated in the fiscal year 2009-10, has been strengthened. Indicative budget Ceilings for the current and development budgets are issued to all Principal Accounting Officers of the federal Government on a three-year rolling basis.

2 The annual budget estimates for any fiscal year ( 2018-19) are then finalised in consultation with various federal Ministries. Linkage between allocations and public service delivery have been established through Output Based Budgeting. Performance of federal Ministries/Divisions have been monitored against precisely defined key performance indicators. This document also includes medium term macroeconomic indicators to provide strategic economic perspective, and contextualize the budget 2018-19. For the convenience of readers, some additional information regarding subsidies, loans and advances and public sector development programme has been shown separately. After approval by the parliament, all budget books, including the budget in Brief, will be uploaded on the website of the Ministry of Finance: budget at a Glance given at the end of this document offers a quick overview of the federal budget .

3 I hope that this document will be beneficial to all those, who seek a simple and clear understanding of budget 2018-19. Arif Ahmed Khan Secretary to the Government of Pakistan Finance Division Islamabad, the 27th April, 2018 Page1123-3 3 4 4-56-6-67789-10 10 13 13-141515162021222323242526 Chapter 5: Current Expenditure 2018-19 Current Expenditure (Summary)Comparative Position (Comparison) General Public ServiceDefence Affairs and Services Capital ReceiptsEstimated Provincial SurplusExternal ResourcesChapter 4: Provincial Share in federal TaxesNFC AwardPresident's Order No. 5 of 2010 President's Order No. 6 of 2015 Details of Provincial Share in federal TaxesNet federal Transfers to ProvincesComparative Budgetary PositionChapter 3: Resource Position 2018-19 Internal ResourcesNet Revenue ReceiptsCurrent DevelopmentChapter 2: The budget 2018-19 Salient FeaturesExpenditureC O N T E N T SChapter 1: Review of the budget 2017-18 Salient FeaturesSummary - budget and Revised EstimatesResourcesInternal Resources Net Revenue ReceiptsNet Capital ReceiptsEstimated Provincial SurplusExternal Resources2728292930313233343436383839404 141424546464647474849515355_____Macroeco nomic IndicatorsChapter 10:Climate Change BudgetingChapter 9.

4 Medium Term Budgetary Framework (MTBF) budget Strategy PaperPerformance BudgetingPerformance MonitoringBudget Preparation Process Development Expenditure Outside PSDPD etails of SubsidiesDetails of Grants and TransfersChapter 8: Public Sector Development Programme Salient Features of PSDPSize of PSDPC hapter 7: Loans and InvestmentsCurrent Loans and AdvancesDevelopment Loans and AdvancesCurrent InvestmentsHealth Affairs and ServicesRecreational, Culture and ReligionEducation Affairs and ServicesSocial ProtectionChapter 6: Subsidies & Grants/TransfersEnvironment ProtectionHousing and Community AmenitiesPublic Order and Safety AffairsEconomic AffairsC O N T E N T SWorkingofFiscalDeficitandFinancingforBu dget 2018-19 budget at a Glance for the Fiscal Year 2018-19 Glossary of Terms1 a)b)c)d)e)f)g)h)i)j)CHAPTER - 1 REVIEW OF THE budget 2017-18 Theresourceavailabilityduring2017-18hadb eenestimatedatRs4, ,whichincreasedtoRs4, , than the size of budget 2016-17.

5 The size of outlay increased to Rs 5,361 billion in revised estimates as compared to in revised estimates 2, billion, which was of the total current , ,which decreased to Rs 2, billion or by in revised estimates , ,whichdecreasedtoRs2, ,which increased to Rs billion in revised estimates 2017-18 or by ,whichincreased to Rs 1, billion in revised estimates or by Theoverallexpenditureduring2017-18hadbee nestimatedatRs5, ,outofwhichtheshareofcurrentexpenditurew asRs3, , , while development expenditure showed a decline of Rs FEATURESI nbudget2017-18,thedevelopmentexpenditure outsidePublicSectorDevelopmentProgramme( PSDP) ,whichincreased to Rs billion in revised estimates The budget 2017-18 had the following salient features: budget in Brief 2018-192k)l)BudgetRevised2017-182017-184 ,713,6864,774,567A3,825,8633,544,812-2,9 26,0742,676,407-552,520594,554-347,26927 3,852B837,8241,229,754C50,00005,103,7805 ,361,038I3,763,7094,298,279-3,763,7094,2 98,279II1,340,0721,062,759-1,001,000750, 000-152,200153,174-186,871159,585390,094 586,472 ClassificationNet Revenue Receipts Internal ResourcesEXPENDITURE (I + II)BANK BORROWINGRESOURCES (A + B + C)ThesizeofPublicSectorDevelopmentProgra mme(PSDP)for2017-18wasRs2, ,Rs1, ,001billion, , ,Rs30billionforPrimeMinister'sGlobalSDGs AchievementProgramme,Rs40billionforSpeci alFederalDevelopmentProgramme, , , (ERRA)

6 ,Rs5billionforSpecialProvisionforCompeti tionofCPECP rojects,Rs45billionforReliefandRehabilit ationofIDPs,Rs45billionforSecurityEnhanc ement,Rs20billionforPrimeMinister'sYouth InitiativeandRs25billionforGasInfrastruc tureDevelopment Cess. TABLE - 1 Current Expenditure on Revenue AccountNet Capital ReceiptsPrivatization ProceedsFederal estimates for fiscal year 2017-18:SUMMARY OF ESTIMATES FOR 2017-18 Estimated Provincial Surplus External ResourcesDevelopment Expenditure(Rs in Million)Development Expenditure outside PSDPT omeetexpenditureinfiscalyear2017-18,bank borrowingwasprojectedatRs billion, which has been revised upwards to Rs Exp. on Revenue ReceiptsDevelopment Loans & Grants to ProvincesBudget in Brief 2018-193 BudgetRevised2017-182017-184,330,4634,14 7,3054,013,0003,935,000-1,594,9101,563,0 00-2,418,0902,372,000317,463212,305979,8 54845,182-214,689236,429-413,172284,459- 351,992324,2945,310,3174,992,4862,384,24 32,316,0802,926,0742,676,407B.

7 OTHER TAXESG ross Revenue ReceiptsClassificationRESOURCESINTERNAL RESOURCESM iscellaneous ReceiptsNON-TAX REVENUER eceipts from Civil Administration and Other , ,whileTable-3providesthedetails of net capital from Property and EnterpriseIndirect TaxesNET REVENUE RECEIPTSNET REVENUE RECEIPTSNET REVENUE RECEIPTS2017-18 TABLE - ,thenetrevenuereceiptsofFederalGovernmen twereestimatedatRs2,926,074millionintheb udget2017-18,whichhavenowbeenreviseddown wardstoRs2,676,407millionintherevised estimates 2017-18 showing a decrease of Table-2 provides the details: Direct Taxes(Rs in Million)TAX REVENUE ( A + B)A. FBR TAXESP rovincial Share in Gross RevenueBudget in Brief ,567746, ,537134, ,937543,408-184,93759,130-130,000484, ,09368, ,047151,886552,520594,554 Public Debt (Net)Public AccountNET CAPITAL RECEIPTS (I-II).

8 TABLE - 3 CAPITAL RECEIPTS ( A + B + C )ESTIMATED PROVINCIAL SURPLUSR ecovery of Loans (Rs in Million)NET CAPITAL RECEIPTSDISBURSEMENTSF loating DebtNET CAPITAL ,269millionfor2017-18,whichdecreasedtoRs 273, These receipts comprise proceeds of borrowing, money received in repayment ofloans,recoveriesofadvances/investments ,proceedsofsavingschemes, , ,554million, the ,330,463million,whichdecreasedtoRs4,147, ,854million,whichdecreased to Rs 845,182 million or by in revised estimates DebtBudget in Brief ,9201,181,725329,824312,88095,57148,1073 74,525820, ,81021,098826,7301,202, ,09326,93210,82222,0302714,902837,8241,2 29, EXTERNAL RESOURCES (A + B):PROJECT LOANS & GRANTS OUTSIDE PSDPEXTERNAL LOANS ( a to d ) AidEXTERNAL ,920million,whicharenowprojectedatRs1,18 1,725millioninrevisedestimates showing an increase of (Rs in Million)EXTERNAL EXTERNAL RESOURCES (I + II):Project ,810millioninthebudgetestimates2017-18 to Rs 21,098 million in the revised estimates 2017-18 or by ClassificationProgramme LoansEXTERNAL ,824million,whichincreasedtoRs1,229, below presents the details:TABLE - 4 budget in Brief 2018-196 BudgetRevised2017-182017-18A.

9 3,763,7094,298,279-2,553,6332,977,275-92 0,166999,237-109,604119,417-62,94080,742 -1,1411,228-2,3292,449-12,84712,944-8,43 411,866-90,51690,818-2,1002,302B. 1,340,0721,062,759-1,001,000750,000-152, 200153,174-186,871159,5855,103,7805,361, ,103,780million,whichincreasedtoRs5,361, 038millioninrevisedestimates2017-18orby5 %. expenditure for the fiscal year 2017-18:DEVELOPMENTD evelopment Expenditure outside PSDPE nvironment ProtectionHousing and Community AmenitiesEducation Affairs and ServicesClassification2017-18(Rs in Million)CURRENTG eneral Public ServiceDevelopment Loans & Grants to ProvincesDefence Affairs & ServicesEconomic AffairsHealth Affairs & ServicesCURRENT AND DEVELOPMENT EXPENDITURETABLE - 5 Social ProtectionPublic Order and Safety AffairsFederal PSDPTOTAL EXPENDITURE (A + B):Recreation, Culture and ReligionBudget in Brief 2018-197a)b)c)d)e)f)g)h)i)j) The budget 2018-19 has the following salient features.

10 TheexpenditureonGeneralPublicServicesise stimatedatRs3, ,which is of the current , , against Rs 4, billion in the budget estimates of , , which is higher than the budget estimates for - 2 Theexternalreceiptsin2018-19areestimated atRs1, increase of over the budget estimates for FEATUREST heshareofcurrentanddevelopmentexpenditur erespectivelyintotalbudgetary outlay for 2018-19 is and Thenetrevenuereceiptsfor2018-19havebeene stimatedatRs3, an increase of over the budget estimates of , than the size of budget estimates , ,outofwhichthecurrentexpenditureisRs4, expenditure is Rs 1, billion. THE budget 2018-19 budget in Brief 2018-198k)l)BudgetRevised Budget2017-182017-182018-194,713,6864,77 4,5674,917,162A3,825,8633,544,8123,799,1 39-2,926,0742,676,4073,070,439-552,52059 4,554443,096-347,269273,852285,604B837,8 241,229,7541,118,024C50,000--5,103,7805, 361,0385,932,464I3,763,7094,298,2794,780 ,359-3,763,7094,298,2794,780,359II1,340, 0721,062,7591,152,105-1,001,000750,00080 0,000-152,200153,174180,238-186,871159,5 85171,867390,094586,4721,015,302 Dev.