THE BUDGET 2018-19

By Muhammad JuniadPublished On 06 Jan 2023

PREFACE

Budget, in Brief, presents an abridgment of the Federal Budget 2018-19. It provides aggregated information on revenues and expenditures, budgeted for the fiscal year 2018-19 along with budget estimates and revised estimates for the outgoing fiscal year 2017-18. Detailed information is available in the relevant budget documents. The budgeting and accounting classification system used in the budget remains the same, which was adopted under the New Accounting Model introduced in the 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. The annual budget estimates for any fiscal year (e.g. 2018-19) are then finalized in consultation with various Federal Ministries. The linkage between allocations and public service delivery has been established through Output Based Budgeting. Performance of Federal Ministries/Divisions has been monitored against precisely defined key performance indicators.

This document also includes medium-term macroeconomic indicators to provide a 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 programs have 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: www.finance.gov.pk.

‘Budget at a Glance’ given at the end of this document offers a quick overview of the federal budget. I hope that this document will be beneficial to all those, who seek a simple and clear understanding of Budget 2018-19.

Finance Division Islamabad, the 27th April 2018

Arif Ahmed Khan Secretary to the Government of Pakistan

THE BUDGET 2018-19

SALIENT FEATURESSALIENT FEATURES

The budget 2018-19 has the following salient features:

a)	The total outlay of budget 2018-19 is Rs 5,932.5 billion. This size is 16.2% higher than the size of budget estimates 2017-18.

b)	The resource availability during 2018-19 has been estimated at Rs 4,917.2 billion against Rs 4,713.7 billion in the budget estimates of 2017-18.

c)	The net revenue receipts for 2018-19 have been estimated at Rs 3,070.4 billion indicating an increase of 4.9% over the budget estimates of 2017-18.

d)	The provincial share in federal taxes is estimated at Rs 2,590.1 billion during 2018-19, which is 8.6% higher than the budget estimates for 2017-18.

e)	The net capital receipts for 2018-19 have been estimated at Rs 443.1 billion against the budget estimates of Rs 552.5 billion in 2017-18 i.e. a decrease of 19.8%.

f)	The external receipts in 2018-19 are estimated at Rs 1,118 billion. This shows an increase of 33.4% over the budget estimates for 2017-18.

g)	The overall expenditure during 2018-19 has been estimated at Rs 5,932.5 billion, out of which the current expenditure is Rs 4,780.4 billion and development expenditure is Rs 1,152.1 billion.

h)	The share of current and development expenditure respectively in total budgetary outlay for 2018-19 is 80.6% and 19.4%.

i)	The expenditure on General Public Services is estimated at Rs 3,340.4 billion, which is 69.9% of the current expenditure.

j)	The development expenditure outside PSDP has been estimated at Rs 180.2 billion in the budget 2018-19, which is higher by 18.4% than budget estimates 2017-18.

The size of Public Sector Development Programme (PSDP) for 2018-19 is Rs 1,650 billion. Out of this, Rs 850 billion has been allocated to provinces. Federal PSDP has been estimated at Rs 800 billion, out of which Rs 420.4 billion for Federal Ministries/Divisions, Rs 246.1 billion for Corporations, Rs 5 billion for Pakistan Sustainable Development Goals (SDGs) and Community Development Programme, Rs 8.5 billion for Earthquake Reconstruction and Rehabilitation Authority (ERRA), Rs 5 billion for Special Provision for Competition of CEPEC Projects, Rs 10 billion for FATA 10 year Plan, Rs 45 billion for Relief and Rehabilitation of IDPs, Rs 45 billion for Security Enhancement, Rs 10 billion for Prime Minister's Youth Programme and Rs 5 billion for Gas Infrastructure Development Cess.

To meet expenditure, bank borrowing has been estimated for 2018-19 at Rs 1,015.3 billion, which is significantly higher than revised estimates 2017-18.

Table-6 below presents the comparative position of budget and revised estimates for the fiscal year 2017-18 and budget estimates for the fiscal year 2018-19.

TABLE - 6
COMPARATIVE BUDGETARY POSITION
2017-18 AND 2018-19
(Rs in Million)
Classification	Budget			Revised			Budget
	2017-18			2017-18			2018-19
RESOURCES ( A + B + C )			4,713,686			4,774,567			4,917,162
Internal Resources		3,825,863			3,544,812			3,799,139
Net Revenue Receipts	2,926,074			2,676,407			3,070,439
Net Capital Receipts	552,520			594,554			443,096
Estimated Provincial Surplus	347,269			273,852			285,604
External Resources		837,824			1,229,754			1,118,024
Privatization Proceeds		50,000			-			-
EXPENDITURE (I + II)			5,103,780			5,361,038			5,932,464
Current Expenditure on Revenue Account
		3,763,709			4,298,279			4,780,359
Current Exp. on Revenue Account		3,763,709			4,298,279			4,780,359
Development Expenditure		1,340,072			1,062,759			1,152,105
Federal PSDP		1,001,000			750,000			800,000
Dev. Expenditure outside PDSP		152,200			153,174			180,238
Dev. Loans & Grants to Provinces		186,871			159,585			171,867
BANK BORROWING			390,094			586,472			1,015,302

Total Federal PSDP 2018-19 would be Rs 1,030 billion out of which Rs 230 billion would be self-financing by the corporation/authorities and Rs 800 billion would be provided budget 2018-19.