Annual Budget Statement 2021-22
The Annual Budget Statement 2021-22 is part of the federal budget for FY 2021-22. This page reproduces the text of its 50 PDF pages, extracted automatically from the official PDF published by the Finance Division, Government of Pakistan.
This text was extracted automatically from the PDF's text layer. Tables may lose their column alignment, and a page with no text layer is marked rather than guessed. Check the official PDF before relying on any figure.
Page 1
FEDERAL
BUDGET
2021-22
ANNUAL
BUDGET
STATEMENT
Government of Pakistan
Finance Division
IslamabadPage 2
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Page 3
Preface
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. 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.
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 5th
May, 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. 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, 2021Page 4
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Page 5
CONTENTS PAGE
I. Summary of Receipts ……………………………………………………………………… 1
II. Revenue Receipts ……………………………………………………………………… 2-4
III. Capital Receipts ………………………………………………………………………… 5
IV. External Receipts ………………………………………………………………………… 6
V. Public Account Receipts …………………………………………………………………… 7-10
VI. Summary of Expenditure …………………………………………………………………… 11
VII. Current Expenditure on Revenue Account ……………………………………………… 12-14
VIII. Current Expenditure on Capital Account ………………………………………………… 15
IX. Development Expenditure on Revenue Account ……………………………………… 16-17
X. Development Expenditure on Capital Account ………………………………………… 18
XI. Capital Expenditure ……………………………………………………………………… 19
XII. Public Account Expenditure ……………………………………………………………… 20-23
XIII. Estimated Charged and Other Expenditure
met from Federal Consolidated Fund …………………………………………………… 24
XIV. Statement of Purpose………………………………………………………………………… 25
XV. Demand for Grants and Appropriations for Expenditure 2021-22
Demand-Wise Expenditure (Schedule-I) ……………………………………………… 27-32
XVI. Demand for Grants and Appropriations for Expenditure
2020-21 and 2021-22 Object-Wise Classification (Schedule-II) ……………………… 33
XVII. Statement of Contingent Liabilities……………………………………………… 34-36
XVIII. Statement of Fiscal Risk………………………………………………………….. 37-38
XIX. Statement of Estimated Tax Expenditure………………………………………………… 39
XX. Medium Term Budgetary Statement 2020-23……………………………….. 40-42
XXI. Statements of Responsibility……………………………………………………… 43-44Page 6
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Page 7
SUMMARY OF RECEIPTS
Federal receipts are categorized as Revenue Receipts, Capital Receipts, Public Account Receipts and
External Receipts. All these receipts, except Public Account Receipts become part of the the Federal
Consolidated Fund.
As per Section 22 of the Public Finance Mangement Act, 2019, the operation of the Federal Consolidated
Fund and the Public Account of the Federation vests in the Finance Division
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
Revenue Receipts
B 1 Tax Revenue Receipts 4,963,000 4,690,999 5,829,000
FBR Taxes 4,963,000 4,690,999 5,829,000
Direct Taxes 2,043,000 1,788,999 2,182,000
Indirect Taxes 2,920,000 2,902,000 3,647,000
C 2 Non-Tax Revenue Receipts 1,610,226 1,704,443 2,079,965
B03 Levies and Fees 26,300 18,431 29,503
C01 Income from Property and Enterprise 210,708 177,188 265,839
C02 Receipts from Civil Administration etc 645,616 727,524 684,105
C03 Miscellaneous Receipts 727,602 781,301 1,100,518
3 Total Revenue Receipts (1+2) 6,573,226 6,395,442 7,908,965
E 4 Capital Receipts 1,326,052 1,701,184 1,439,879
E02 Recovery of Loans and Advances 147,167 184,120 273,352
E03 Domestic Debt Receipts (Non Bank) - Net 1,178,885 1,517,063 1,166,527
5 Total Internal Receipts (3+4) 7,899,278 8,096,626 9,348,845
6 External Receipts 2,222,919 2,286,859 2,747,792
Loans 2,157,500 2,201,250 2,693,338
Grants 20,667 27,749 31,636
Project Loans & Grants Outside PSDP 44,751 57,859 22,817
7 Total Internal and External Receipts (5+6) 10,122,197 10,383,484 12,096,636
8 Public Account Receipts 215,619 (81,318) 74,195
Deferred Liabilities (Net) 227,279 (60,897) 58,137
Deposit and Reserves (Net) (11,660) (20,421) 16,058
9 Gross Federal Resources (7+8) 10,337,816 10,302,167 12,170,831
10 Less Provincial Share in Federal Taxes 2,873,719 2,704,164 3,411,858
11 Net Federal Resources (9-10) 7,464,097 7,598,003 8,758,973
12 Cash Balance built up by the Provinces 242,472 242,000 570,000
13 Privatization Proceeds 100,000 - 252,000
14 Credit from Banking Sector 983,545 649,256 681,336
15 Total-Resources (11+12+13+14) 8,790,114 8,489,259 10,262,309Page 8
REVENUE RECEIPTS
Revenue Receipts constitute major component of total Federal resources. Revenue Receipts may be
categorized as Tax Revenue Receipts and Non-Tax Revenue receipts, which are largely derived from the
following sources:-
Tax Revenue
Tax Revenue is administered by the Federal Board of Revenue (FBR), which comprises Customs Duty
and Inland Revenue i.e Direct Taxes, Sales Tax and Federal Excise Duty. FBR taxes may also be
categorized as Direct Taxes and Indirect Taxes. Direct Taxes comprise Income Tax, Workers Welfare
Fund and Capital Value Tax. Indirect Taxes include Sales Tax, Federal Excise Duty and Customs Duty. A
snapshot of Budget Estimates is as under;
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
B Tax Revenue
FBR Taxes 4,963,000 4,690,999 5,829,000
B01 i.Direct Taxes 2,043,000 1,788,999 2,182,000
B011 Taxes on Income 2,032,557 1,779,924 2,171,839
B015 Worker's Welfare Fund 3,969 7,193 8,054
B015 Worker's Profit Participation Fund 3,750 1,380 1,545
B017-18 Capital Value Tax (CVT) 2,724 502 562
B02 ii.Indirect Taxes 2,920,000 2,902,000 3,647,000
B020-22 Customs Duties 640,000 700,000 785,000
B023 Sales Tax 1,919,000 1,927,000 2,506,000
B024-25 Federal Excise 361,000 275,000 356,000
1 Total Tax Revenue (i+ii) 4,963,000 4,690,999 5,829,000Page 9
REVENUE RECEIPTS
Non-Tax Revenue
As per Section 2(ma) of the Public Finance Management Act, 2019 (amended), Non-Tax Revenue means
revenues received by the Government in terms of clause (1) of Article 78 of the Constitution and the
recurring income of the Government from investments and provision of services but does not include
those mentioned in clause (3) of Article 160 of the Constitution. Non-Tax Revenue of the federal
government is administered by various Ministries / Divisions/ Departments. Budget Estimates are as
under;
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
C Non Tax Revenue
a) Levies and Fees 26,300 18,431 29,503
Mobile Handset Levy 5,800 5,000 9,000
Receipts of ICT Administration 20,475 13,401 20,453
Airport Fee (CAA) 25 30 50
C01 b) Income from Property and Enterprise 210,708 177,188 265,839
C01008 Surplus Profit of PTA 2,000 2,419 4,000
C01008 PTA (3/4G License Renewal Fees) 27,000 33,893 45,436
C01012 Regulatory Authorities 542 585 508
C012-18 Mark up Receipts 120,188 99,963 125,532
C012 Mark up Receipts (Provinces) 26,843 24,963 35,532
C013-18 Mark up Receipts ( PSEs & Others) 93,345 75,000 90,000
C019 Dividend 60,978 40,328 90,363
C02 c) Receipts from Civil Administration
and Other Functions 645,616 727,524 684,105
C021-24 General Administration Receipts 3,440 4,303 7,114
C02211 Surplus Profit of State Bank of Pakistan 620,000 700,000 650,000
C025 Defence Services Receipts 18,431 18,431 20,274
C026 Law and Order Receipts 1,198 1,850 2,695
C027 Community Services Receipts 1,097 1,900 2,538
C028-29 Social Services 1,450 1,040 1,485
C03 d) Miscellaneous Receipts 727,602 781,301 1,100,518
C031-35 Economic Services Receipts 2,096 2,287 2,980
C036 Foreign Grants 22,517 12,000 20,000
Citizenship, Nationalization, Passport and C03897 25,000 25,000 35,000 Copyright Fees
Contd…..Page 10
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
C03901 Petroleum Levy 450,000 500,000 610,000
C03902 Natural Gas Development Surcharge 10,000 27,000 36,000
C03905 Royalty on Crude Oil 23,000 26,000 35,000
C03906 Royalty on Natural Gas 53,812 57,000 65,000
C03910 Discount Retained on Local Crude Price 17,000 16,000 20,000
C03915 Windfall Levy against Crude Oil 8,000 6,000 10,000
C03916 Gas Infrastructure Development Cess 15,000 25,000 130,000
C03917 Petroleum Levy on LPG 5,516 4,772 7,600
Others 95,661 80,241 128,938
C 2 Total Non-Tax Revenue (a+b+c+d) 1,610,226 1,704,443 2,079,965
3 Total Revenue Receipts (1+2) 6,573,226 6,395,442 7,908,965Page 11
CAPITAL RECEIPTS
Capital receipts comprise Recoveries of Loans and Advances from Provinces and other entities and Public
Debt which includes Permanent Debt and Floating Debt. The net capital receipts so realized by the federal
government generally constitute the available resources for the financing of its Public Sector Development
Programme. Budget Estimates are as under;
(Rs in million)
Budget Revised Budget
Object Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
E02 I. Recoveries of Loans and Advances 147,167 184,120 273,352
E021 Provinces 89,025 88,119 95,361
E022-27 PSEs and Others 58,142 96,001 177,990
E03 II. Total Domestic Debts Receipts (i+ii) 11,278,787 16,235,700 22,783,874
E031 i) Permanent Debt Receipts 1,827,003 2,162,878 3,657,981
Pakistan Investment Bonds (Bank) 277,531 569,000 746,685
Pakistan Investment Bonds (Non Bank) 1,079,472 1,131,468 1,681,296
Premium Prize Bonds (Registered) 20,000 25,000 30,000
Ijara Sukuk Bonds 450,000 437,410 1,200,000
E032 ii) Floating Debt Receipts 9,451,784 14,072,822 19,125,893
Prize Bonds 48,626 55,871 10,418
Treasury Bills through Auction 9,401,000 14,016,951 19,115,475
Others Bills 1,858 - -
Ways and Means Advances 300 - -
E 4 Capital Gross Receipts (I+II) 11,425,954 16,419,820 23,057,226
Domestic Debt Receipts (i+ii) 11,278,787 16,235,700 22,783,874
Domestic Debt Repayment (page-19) 10,099,902 14,718,637 21,617,347
Net Domestic Debt Receipts 1,178,885 1,517,063 1,166,527
5 Total Federal Internal Gross Receipts (3+4) 17,999,180 22,815,262 30,966,191Page 12
EXTERNAL RECEIPTS
External Resources comprise loans and grants received from multilateral, bilateral and other sources
for approved projects, programmes and other initiatives. Budget Estimates are as under;
(Rs in million)
Budget Revised Budget
Description Estimates Estimates Estimates
2020-21 2020-21 2021-22
I Loans 2,157,500 2,201,250 2,693,338
Project Loans (PSDP) 218,153 228,897 259,943
Federal 66,822 129,587 93,713
Provincial 151,331 99,309 166,231
Programme Loans 503,567 440,319 438,195
Other Loans 1,435,781 1,532,035 1,995,200
Islamic Development Bank 165,000 128,800 160,000
Saudi Arabia (Oil Facility) 165,000 - -
Euro Bond/International Sukuk 247,500 402,500 560,000
China safe Deposits (bilateral) - 161,000 -
Commercial Banks 647,213 762,335 779,200
IMF Loan for Budgetary Support 211,068 77,400 496,000
II Grants 20,667 27,749 31,636
Project Grants 20,667 27,749 31,636
Federal (PSDP) 5,653 10,315 6,287
Provincial (PSDP) 15,014 17,434 25,349
a. External Receipts (I +II) 2,178,168 2,228,999 2,724,974
b. Project Loans & Grants Outside PSDP 44,751 57,859 22,817
Loans 42,411 50,450 22,139
Grants 2,340 7,409 678
6 Total External Receipts (a +b) 2,222,919 2,286,859 2,747,792Page 13
PUBLIC ACCOUNT RECEIPTS
Article 78(1) of the Constitution of Islamic Republic of Pakistan provides that all revenues received by the
Federal Government, all loans raised by that Government and all moneys received by it in repayment of
loan, shall form part of the Federal Consolidated Fund. Article 78(2) provides that all other monies
received by or on behalf of the Federal Government shall be credited into the Public Account of the
Federation. Therefore, all the monies received by or on behalf of the Federal Government in terms of
Article 78(2) are Public Account receipts which are not revenues in terms of Article 78(1) of the
Constitution. However, such Public Account receipts cannot be operated without establishment of Special
Purpose Funds, deposits, reserves etc under the authority of an act of the Parliament or with the approval
of the Federal Government. Moreover, as per Section 32 of the Public Finance Management Act, 2019,
special purpose funds, in which monies have been appropriated by the National Assembly shall be
established under any law or with the approval of the Federal Government. There are two sources of
Public Account Receipts as under;
National Savings Schemes
National Savings Schemes include Savings bank accounts, Defence Savings Certificates, Special
Savings Certificates, Pension Benefit Accounts, Behbood Savings Certificates etc. Budget Estimates are
as under;
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
i. G111 Investment Deposit Accounts (Savings Schemes) 932,904 849,253 939,866
G11101 Savings Bank Accounts 365,111 337,558 320,427
G11106 Defence Savings Certificates 63,939 37,464 59,798
G11111 Special Savings Certificates (Registered) 96,550 56,383 51,480
G11112 Special Savings Accounts 105,437 78,212 71,409
G11113 Regular Income Certificate 74,007 86,179 124,458
G11126 Pension Benefit Accounts 52,555 67,186 94,370
G11127 Behbood Saving Certificates 132,285 171,252 172,903
G11130 Shuhada Welfare Account 20 20 20
New Savings Schemes 30,000 - 30,000
Short Term Savings Certificates 13,000 15,000 15,000
ii. Other Accounts 8,000 5,260 -
G03109 Postal Life Insurance Fund 8,000 5,260 -
iii. G061 Provident Fund 60,000 46,600 47,000
Total Receipts ( i+ii+iii ) 1,000,904 901,113 986,866
1 Gross Receipts 1,000,904 901,113 986,866
Gross Expenditure(Public Account) (Page-20) 773,626 962,010 928,730
Net Receipts 227,279 (60,897) 58,137
Contd…..Page 14
PUBLIC ACCOUNT RECEIPTS
Deposits and Reserves
Deposits and Reserves represent all monies forming part of the Public Account of the Federation as per
Article 78(2) of the Constitution of Islamic Republic of Pakistan. Budget estimates of receipts in the
following table are however subject to fulfillment of following stipulations; (i) The funds appropriated by the
National Assembly out of Federal Consolidated Funds in terms of Articles 80 to 84 of the Constitution for a
particular financial year (being lapsable) shall be utilized as per Cash Management and TSA Rules 2020
and shall not be deposited under these deposits and reserves heads of account (being non-lapsable)
under the Public Account.(ii) The maintenance and operation of all these funds, deposits, reserves etc
shall be subject to their due establishment either under the authority of an act of Parliament or with the
approval of the Federal Government, as the case may be.(iii) Revenues in terms of Article 78(1) of the
Constitution shall not be deposited in these deposits and reserves heads of account under the Public
Account. The revenues shall only be deposited in the respective heads of account of tax revenue and non
tax revenue.(iv) Receipt of funds into these deposits and resreves heads of account shall only be allowed
by the Accounting Offices subject to compliance of the stipulations at (i) to (iii) above and to the extent of
reconciled available balance under the respective head of account.
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
G Deposits and Reserves
FGE Benevolent Funds
G06202 F.G.Employees Benevolent Fund (Civil) 1,331 1,282 1,199
G06205 F.G.Employees Benevolent Fund (Pak.Post) 169 166 200
G06206 F.G.Employees Benevolent Fund (Pak.PWD) 7 6 5
G06209 F.G.Employees Benevolent Fund (N.S.) 13 12 12
G06210 F.G.Employees Benevolent Fund (Mint) 3 - 4
G06212 F.G.Employees Benevolent Fund (GSP) 5 - 5
Group Insurance Fund
G06409 F.G.Employees Group Insurance Fund (Civil) 421 401 387
G06410 F.G.Employees Group Insurance Fund (Defence) 196 181 265
Pakistan Post Office
G07101 Post Office Renewal Reserve Fund 32 3 50
G07102 Pakistan Post Office Welfare Fund 61 1 37
G07106 PPO Miscellaneous 188,255 266,337 198,253
Railways
G08117 Railways Reserve Fund 40,000 - -
G08121 Railways Depreciation Reserve Fund 4,922 - -
Pak PWD
G10101 Pak. PWD Receipts & Collection Account 378 992 931
G10113 Public Works/Pak. PWD Deposits 22,686 30,254 18,076
Contd…..Page 15
(Rs in million)
Budget Revised Budget
Object Description Estimates Estimates Estimates Code
2020-21 2020-21 2021-22
Defence
G11224 Deposit Account with Defence 3,756 5,480 2,572
G06203 F.G.Employees Benevolent Fund (Defence) 2,563 2,558 1,899
Misc.
G06304 Workers Welfare Fund 9,765 10,744 18,533
G07104 F.G.Employees Group Insurance Fund (PPO) 12 87 15
G11225 Deposit Account with AGPR 290 184 372
G11230 Special Remittances Deposits 1,078 1,334 5,251
G10102 Foreign Affairs Receipt & Collection Account 2,860 1,843 7,625
G Deposits and Reserves
G10104 Mint Receipts & Collection Account 132 73 94
G10106 Deposit Works of Survey of Pakistan 26 68 46
G10304 Zakat Collection Account 2,194 2,184 2,153
G11215 Revenue Deposits 996 5,371 10,295
G11216 Civil and Criminal Court Deposits 18 37 46
G11217 Personal Deposits 40,662 63,147 60,367
G11220 Deposits in connection with Elections 4 4 92
G11240 Security Deposits of Cashiers 309 227 386
G11255 Defence Services Security Deposits 2,066 3,048 3,857
G11256 Defence Services Misc. Deposits 217,041 170,908 177,999
G11280 Withholding Tax on Profit From Investment in
NSS 11,446 12,107 6,786
G11281 Deposit Account of fees realized by PNAC 33 53 59
G11290 Security Deposit of Firms/Contractors 33 275 237
G12150 PM's Relief Fund for IDP's 2014 3,646 2,665 3,926
G12157 PM COVID-19 Panademic Relief Fund 2020 25 508 929
G12205 Pakistan Minorities Development Fund 0 47 21
G12206 Spl. Fund for Welfare & Uplift of Minorities 47 53 92
G12226 Federal Govt. Artists Welfare Fund 14 28 4
G11276 Security Deposits of Private Companies 29 - -
G12305 Export Development Fund 0 - 894
G12308 Reserve Fund for Exchange Risk on Foreign
Loans 293 334 2,847
G12412 Pakistan Oil Seeds Development Cess Fund 152 159 134
G12419 Research and Development Fund 948 1,397 1,885
G12421 SCP Diamer Basha&Mohamand Daam Fund 24 - 4
G12713 Income Tax Deduction from Salaries 21 24 21
G12714 Income Tax Deduction from Contractors/Suppliers 84 124 108
G12738 National Fund for Control of Drug Abuse 35 66 36
G12741 Fed. Civil Servant's subs. to Services Book Club 18 14 11
G12777 Sales Tax Deduction at Source 8 19 17
Contd…..Page 16
(Rs in million)
Budget Revised Budget
Object Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
G12783 Universal Service Fund 3,600 4,448 5,946
G13127 Grants and T.A from US Government 885 635 140
G13140 GSP Receipt and Collection Account 25 30 31
G141 Coinage Account 1,350 - -
Others 27 20 11
2 Gross Receipts (Deposits and Reserves) 564,993 589,938 535,165
Exp (Deposits and Reserves) (Page-23) 576,654 610,359 519,107
Net Deposits and Reserves Receipts (11,660) (20,421) 16,058
Public Account - Summary
3 Gross Receipt (1+2) 1,565,898 1,491,051 1,522,031
Gross Expenditure (Page-23) 1,350,279 1,572,369 1,447,837
7 Public Account Net Receipts 215,619 (81,318) 74,195Page 17
SUMMARY OF EXPENDITURE (Current & Dev)
In this table, the Budget Estimates of current expenditure (on revenue and capital account) and Budget
Estimates of Development expenditure (on revenue and capital accounts) have been mentioned as per
Article 80(2) of the Constitution of Pakistan.
(Rs in million)
Budget Revised Budget Function Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
Current Expenditure on Revenue Account
01 General Public Services 4,428,960 4,491,028 5,435,200
02 Defence Affairs and Services 1,292,943 1,299,188 1,373,275
03 Public Order and Safety Affairs 169,961 168,952 178,511
04 Economic Affairs 71,751 192,452 115,243
05 Environment Protection 431 399 436
06 Housing and Community Amenities 35,680 9,997 34,597
07 Health* 25,494 52,325 28,352
08 Recreation, Culture and Religion 9,822 12,160 10,372
09 Education Affairs and Services 83,363 88,090 91,970
10 Social Protection 230,907 246,411 255,292
a. Current Exp. on Revenue Account 6,349,311 6,561,000 7,523,248
b. Current Exp. on Capital Account 1,491,065 1,064,924 1,601,211
1 Total Current Expenditure (a + b) 7,840,375 7,625,924 9,124,459
c. Dev. Exp. on Revenue Account (i+ii) 460,121 370,884 599,080
d. Dev. Exp. on Capital Account (i+ii) 489,617 492,451 538,770
2 Total Development Expenditure (c+d) 949,738 863,335 1,137,850
Total - Expenditure (1+2) 8,790,114 8,489,259 10,262,309
3 Break-up of Expenditure
Revenue Account (a+c) 6,809,432 6,931,884 8,122,328
Capital Account (b+d) 1,980,682 1,557,375 2,139,981
Total Expenditure: 8,790,114 8,489,259 10,262,309
*An amount of Rs 100 billion has been allocated for COVID related expenditure
during FY 2021-22Page 18
Current Expenditure on Revenue Account
(Rs in million)
Budget Revised Budget Function Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
01 General Public Service 4,428,960 4,491,028 5,435,200
011 Executive & Legislative Organs,
Financial & Fiscal Affairs, External Affairs 3,664,058 3,752,261 4,235,254
Debt Servicing 2,946,135 2,850,688 3,059,681
Servicing of Foreign Debt 315,135 239,568 302,506
Servicing of Domestic Debt 2,631,000 2,611,120 2,757,176
Superannuation Allowances & Pensions 470,000 470,000 480,000
Others 247,923 431,574 695,573
012 Foreign Economic Aid 2,387 1,901 3,305
014 Transfers 687,355 688,780 1,149,251
Provinces 171,890 157,890 213,350
Others 515,465 530,890 935,901
015 General Services 10,623 10,346 10,619
016 Basic Research 5,952 6,015 6,413
017 Research & Dev. General Public Services 15,108 16,246 16,744
018 Admn. of General Public Service 3,149 3,149 3,827
019 Gen. Public Services not elsewhere defined 40,329 12,330 9,788
02 Defence Affairs and Services 1,292,943 1,299,188 1,373,275
021 Defence Services 1,290,000 1,295,000 1,370,000
A01 Employees Related Expenses 475,657 471,762 481,592
A03 Operating Expenses 301,109 308,970 327,136
A09 Physical Assets 357,756 357,393 391,499
A12 Civil Works 155,478 156,875 169,773
025 Defence Administration 2,943 4,188 3,275
03 Public Order and Safety Affairs 169,961 168,952 178,511
031 Law Courts 6,937 7,248 7,974
032 Police & Civil Armed Forces 158,621 157,312 165,153
033 Fire Protection 303 266 290
034 Prison Administration and Operation 47 42 48
035 R&D Public Order and Safety 50 60 56
036 Administration of Public Order 4,003 4,024 4,990
Contd…..Page 19
Current Expenditure on Revenue Account
(Rs in million)
Budget Revised Budget Function Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
04 Economic Affairs 71,751 192,452 115,243
041 Gen. Eco., Commercial & Labour Affairs 14,108 87,982 31,054
042 Agri., Food, Irrigation, Forestry & Fisheries 13,696 29,400 14,098
043 Fuel and Energy 10,762 12,762 20,770
044 Mining and Manufacturing 1,968 2,689 2,278
045 Construction and Transport 15,638 22,246 26,700
046 Communications 3,779 25,716 18,916
047 Other Industries 11,800 11,457 1,426
Research & Development
48 Economic Affairs 200 -
05 Environment Protection 431 399 436
055 Administration of Environment Protection 431 399 436
06 Housing and Community Amenities 35,680 9,997 34,597
061 Housing Development 31,000 5,353 30,720
062 Community Development 4,680 4,644 3,877
07 Health 25,494 52,325 28,352
071 Medical Products, Appliances and
Equipments 31 31 31
073 Hospital Services 22,774 16,316 23,982
074 Public Health Services* 504 33,061 849
076 Health Administration 2,184 2,916 3,489
*An amount of Rs 100 billion has been allocated for COVID related
expenduture during FY 2021-22
Contd…..Page 20
Current Expenditure on Revenue Account
(Rs in million)
Budget Revised Budget
Function Description Estimates Estimates Estimates Code
2020-21 2020-21 2021-22
08 Recreation, Culture and Religion 9,822 12,160 10,372
081 Recreational and Sporting Services 0.4 0.2 0.3
082 Cultural Services 747 751 934
083 Broadcasting and Publishing 7,500 8,912 7,677
084 Religious Affairs 1,122 2,049 1,185
086 Admn. of Information, Recreation & Culture 453 447 574
09 Education Affairs and Services 83,363 88,090 91,970
091 Pre-Primary and Primary Education Affairs
and Services 2,931 2,931 3,021
092 Secondary Education Affairs and Services 7,344 7,355 7,632
093 Tertiary Education Affairs and Services 70,741 75,033 78,195
095 Subsidiary Services to Education 312 317 317
096 Administration 1,237 1,608 1,915
097 Education Affairs & Services not
Elsewhere Classified 798 847 890
10 Social Protection 230,907 246,411 255,292
107 Administration 21,763 29,284 2,018
108 Others 886 863 815
109 Social Protection (Not elsewhere classified) 208,258 216,265 252,460
a. Current Expenditure on Revenue Account 6,349,311 6,561,000 7,523,248Page 21
Current Expenditure on Capital Account
(Rs in million)
Budget Revised Budget Function Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
01 General Public Service 1,491,065 1,064,924 1,601,211
011 Foreign Loans Repayment 1,228,880 841,993 1,427,592
011 Repayment of Short Term Foreign Credits 183,691 121,944 74,405
014 Transfers 78,493 100,986 99,214
Federal Misc. Investments and
Other Loans and Advances by the Fed. Govt. 78,493 100,986 99,214
b. Current Expenditure on Capital Account 1,491,065 1,064,924 1,601,211
I. Total Current Expenditure (a+b) 7,840,375 7,625,924 9,124,459Page 22
Development Expenditure on Revenue Account
(Rs in million)
Budget Revised Budget Function Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
01 General Public Service 273,596 244,312 330,916
011 Executive & Legislative Organs, Financial
& Fiscal Affairs, External Affairs 8,070 6,556 5,181
014 Transfers 157,979 160,263 169,940
015 General Services 73,695 48,138 101,162
016 Basic Research 7,474 3,140 13,318
017 Research & Dev. General Public Services 548 143 1,967
019 General Public Services not elsewhere
defined 25,830 26,071 39,349
02 Defence Affairs and Services 1,579 1,204 3,192
021 Defence Division 0 125 1,400
025 Defence Administration 1,579 1,079 1,792
03 Public Order and Safety Affairs 3,329 4,083 8,720
031 Law Courts 991 2,354 6,001
032 Police and Civil Armed Forces 2,169 1,598 2,492
036 Administration of Public Order 169 130 226
04 Economic Affairs 116,287 71,113 152,405
041 Gen. Eco. Commercial and Labour Affairs 117 67 2,955
042 Agri., Food, Irrigation, Forestry & Fisheries 77,450 53,017 102,742
043 Fuel and Energy 2,741 1,810 19,764
044 Mining and Manufacturing 80 80 80
045 Construction and Transport 32,408 14,326 23,142
046 Communications 3,346 1,739 3,679
047 Other Industries 146 74 43
05 Environment Protection 5,000 5,000 14,327
055 Administration of Environment Protection 5,000 5,000 14,327
06 Housing and Community Amenities 8,818 2,912 13,304
062 Community Development 8,818 2,912 13,304
Contd…..Page 23
Development Expenditure on Revenue Account
(Rs in million)
Budget Revised Budget Function Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
07 Health 14,533 8,437 21,748
073 Hospital Services 6,668 3,683 12,816
074 Public Health Services 2,975 1,975 2,715
075 Research and Development Health 3 3 -
076 Health Administration 4,888 2,776 6,216
08 Recreation, Culture and Religion 1,022 247 4,647
081 Recreation and Sporting Services 929 155 3,735
082 Cultural Services 92 92 10
83 Broadcasting and Publishing 0 0 902
09 Education Affairs and Services 34,235 33,404 47,570
091 Pre-Primary & Primary Edu. Affairs & Services 65 53 18
092 Secondary Edu. Affairs & Services 938 806 475
093 Tertiary Edu. Affairs & Services 31,338 31,041 44,619
095 Subsidiary Services to Education 354 207 721
097 Education Affairs & Services not
Elsewhere Classified 1,540 1,298 1,736
10 Social Protection 1,722 171 2,252
107 Administration 1,500 - 1,600
108 Others 87 66 53
109 Social Protection (Not elsewhere classified) 135 106 599
c. Dev. Exp. on Revenue Account 460,121 370,884 599,080Page 24
Development Expenditure on Capital Account
(Rs in million)
Budget Revised Budget Function Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
01 General Public Service 474,891 471,958 499,818
011 Executive & Legislative Organs, Financial
& Fiscal Affairs, External Affairs 10 10 -
014 Transfers 451,153 448,247 472,618
017 Research and Dev. General Public
Services 23,647 23,621 27,200
019 General Public Services not Elsewhere defind
80 80 -
04 Economic Affairs 14,726 20,493 38,901
041 Gen. Eco., Commercial and Labour Affairs 27 17 70
043 Fuel and Energy 1,760 1,779 3,180
044 Mining and Manufacturing 800 769 2,916
045 Construction and Transport 10,724 16,544 30,299
046 Communications 1,416 1,385 2,436
8 Recreation Culture and Religion - - 51
83 Broadcasting and Publishing - - 51
d. Dev. Expenditure on Capital Account 489,617 492,451 538,770
II. Total Development Expenditure (c+d) 949,738 863,335 1,137,850
III. Total Exp. (Current+Development) 8,790,114 8,489,259 10,262,309Page 25
CAPITAL EXPENDITURE
The expenditure incurred on repayment of domestic debt receipts is termed as Capital Expenditure.
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
A101 i. Domestic Permanent Debt 962,936 962,445 1,683,486
Pakistan Investment Bonds (Bank) 277,531 569,000 746,685
Pakistan Investment Bonds (Non Bank) 679,472 388,003 930,158
Foreign Exchange Bearer Certificates 5 1 5
Foreign Currency Bearer Certificates 5 1 5
US Dollar Bearer Certificates 3 0 3
Special US Dollar Bonds 50 40 50
Premium Prize Bonds (Registered) 5,000 5,000 5,000
Pakistan Banao Certificate (3-years) 199 128 1,581
Pakistan Banao Certificate (5-years) 528 141 -
FADRA 143 131 -
A104 ii. Floating Debt 9,136,965 13,756,191 19,933,861
Prize Bonds 133,807 324,333 250,403
Treasury Bills through Auction 9,001,000 13,430,000 19,500,000
Bai-Maujjal Ijara Sukuk Bonds - - 183,158
Other Bills 1,858 1,858 -
Ways and Means Advances 300 - 300.00
A10 IV. Total Public Debt Repayment (i+ii) 10,099,902 14,718,637 21,617,347
V. Total - Federal Consolidated Fund
Disbursement (III+IV) 18,890,015 23,207,895 31,879,655Page 26
PUBLIC ACCOUNT EXPENDITURE
National Savings Schemes
The expenditure incurred on repayment of National Savings Schemes is termed as Public Account
Expenditure.
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
i. G111 Investment Deposit Accounts (Savings
Schemes) 707,626 901,601 873,730
G11101 Savings Bank Accounts 363,089 340,977 332,976
G11103 Khas Deposit Accounts 5 5 5
G11104 Mahana Amadni Accounts 70 70 70
G11106 Defence Savings Certificates 38,023 45,561 50,440
G11108 National Deposit Certificates 1 1 1
G11109 Khaas Deposit Certificates 1 1 1
G11111 Special Savings Certificates (Registered) 62,995 81,397 88,807
G11112 Special Savings Accounts 68,794 112,914 123,193
G11113 Regular Income Certificate 43,044 61,843 63,293
G11126 Pensionery Benefits 28,512 50,945 52,379
G11127 Behbood Saving Certificate 90,090 168,385 129,560
G11130 Shuda Welfare Account 2 3 5
New Savings Schemes 3,000 - 3,000
Short Term Savings Certificates (STSC) 10,000 39,500 30,000
ii. Other Accounts 10,000 5,909 -
G03109 Postal Life Insurance Fund 10,000 5,909 -
iii. G061 Provident Fund 56,000 54,500 55,000
1 Total Expenditure ( i+ii+iii ) 773,626 962,010 928,730
Contd….Page 27
PUBLIC ACCOUNT EXPENDITURE
Deposits and Reserves
Deposits and Reserves represent all monies forming part of the Public Account of the Federation as per
Article 78(2) of the Constitution of Islamic Republic of Pakistan. Budget estimates of Expenditure
(withdrawal of funds) from the Deposits and Reserves as depicted in the following table are however
subject to fulfillment of following stipulations; (i) The maintenance and operation of all these funds,
deposits, reserves etc shall be subject to their due establishment either under the authority of an act of
Parliament or with the approval of the Federal Government, as the case may be.
(ii) Withdrawal of funds from these deposits and resreves heads of account shall only be allowed by the
Accounting Offices subject to compliance of the stipulations at (i) above and to the extent of reconciled
available balance under the respective head of account. (iv) There shall be no authority of directed access
to Central Account No.1 (Non Food) in SBP.(vii) Withdrawal of funds from these Deposits and Reserves
head of accounts shall be in accordance with the provisions of Public Finance Management Act, 2019,
Cash Management and Treasury Single Account Rules 2020 and the Special Assignment Account
Procedure for the Public Account of the Federation 2021. Personal Ledger Accounts shall not be used for
withdrawal of funds.
(Rs in million)
Budget Revised Budget Object Description Estimates Estimates Estimates Code 2020-21 2020-21 2021-22
G Deposits and Reserves
FGE Benevolent Funds
G06202 F.G.Employees Benevolent Fund (Civil) 1,266 1,901 1,191
G06205 F.G.Employees Benevolent Fund (Pak. Post) 119 212 189
G06206 F.G.Employees Benevolent Fund (Pak. PWD) 7 6 5
G06209 F.G.Employees Benevolent Fund (N.S.) 12 12 12
G06210 F.G.Employees Benevolent Fund (Mint) 3 - 4
G06212 F.G.Employees Benevolent Fund (GSP) 3 - 4
G06409 F.G.Employees Group Insurance Fund (Civil) 434 336 393
G06410 F.G.Employees Group Insurance Fund (Defence) 170 171 267
G07101 Post Office renewal reserve fund - 24
G07102 Pakistan Post Office Welfare Fund 45 29 35
G07106 PPO Miscellaneous 189,865 267,170 197,546
Railways
G08117 Railways Reserve Fund 40,000 - -
G08121 Railways Depreciation Reserve Fund 4,921 - -
Pak PWD
G10101 Pak. PWD Receipts & Collection Account 377 862 474
G10113 Public Works/Pak. PWD Deposits 22,081 18,656 18,479
Defence
G06203 F.G.Employees Benevolent Fund (Defence) 2,198 2,268 1,885
Contd….Page 28
(Rs in million)
Budget Revised Budget
Object Description Estimates Estimates Estimates Code
2020-21 2020-21 2021-22
G11201 Spl.Deposit Fund for Army suplies 155 - -
G11224 Deposit Account with Defence 1,567 2,776 2,598
G11255 Defence Services Security Deposits 9,481 3,645 2,554
G11256 Defence Services Misc. Deposits 218,732 214,638 181,762
Misc.
G06304 Workers Welfare Fund 4,568 6,960 12,539
G07104 F.G.Employees Group Insurance Fund (PPO) 7 10 28
G10102 Foreign Affairs Receipt & Collection Account 3,037 4,620 5,473
G10104 Mint Receipts & Collection Account 58 65 82
G10106 Deposit Works of Survey of Pakistan 50 23 24
G10304 Zakat Collection Account 929 12,457 2,993
G Deposits and Reserves
G11215 Revenue Deposits 28,117 5,723 10,213
G11216 Civil and Criminal Court Deposits 10 14 32
G11217 Personal Deposits 29,058 44,663 55,856
G11220 Deposits in connection with Elections 35 25 55
G11225 Deposit Account with AGPR 190 44 357
G11230 Special Remittances Deposits 966 1,417 4,397
G11240 Security deposits of Cashiers 292 602 54
G11276 Security Deposits of Private Companies 74 - -
G11280 Withholding Tax on Profit From Investment in
NSS 10,677 11,841 6,736
G11281 Deposit Account of fees realized by PNAC 19 27 55
G11290 Security Deposit of Firms/Contractors 162 665 243
G12150 PM's Relief Fund for IDP's 2014 3,645 2,621 3,932
G12157 PM's Covid-19 Pandemic Relief Fund - 16 7
G12205 Pakistan Minorities Welfare Fund - - 27
G12206 Special Fund for Welfare & Uplift of Minorities 43 46 67
G12226 Federal Government Artist Welfare Fund 20 11 5
G12305 Export Development Fund 1,174 1,444 715
G12308 Reserve Fund for Exchange Risk on
Foreing Loans - - 1
G12412 Pakistan Oil Seeds Development Cess Fund - - 2
G12419 Research and Development Fund 558 600 1,061
G12421 SCP Diamer Basha&Mohamand Daam Fund 48 - 8
G12713 Income Tax Deduction from Salaries 18 19 22
G12714 Income Tax Deduction from Contractors/Suppliers 64 105 78
G12738 National Fund for Control of Drug Abuse - - -
Contd….Page 29
(Rs in million)
Budget Revised Budget
Object Description Estimates Estimates Estimates Code
2020-21 2020-21 2021-22
G12741 Fedederal Civil Servant's subscription to Services
Book Club 8 11 9
G12777 Sales Tax Deduction at Source 9 16 13
G12783 Universal Service Fund - 3,600 6,570
G13127 Grants and Technical Assistance from US - -
G13140 GSP Receipt and Collection Account 21 21 23
G141 Coinage Account 1,350 - -
Others 11 11 8
2 Total Expenditure Deposits & Reserves 576,654 610,359 519,107
VI Total Public Account Expenditure (1+2) 1,350,279 1,572,369 1,447,837Page 30
STATEMENT OF ESTIMATED CHARGED AND
VOTED EXPENDITURE MET FROM THE
FEDERAL CONSOLIDATED FUND
In terms of Article 80(2) of the Constitution of Pakistan, this statement distinguishes charged and voted
expenditure. (Rs in million)
Budget Revised Budget
Description Estimates Estimates Estimates
2020-21 2020-21 2021-22
I. Expenditure on Revenue Account 6,809,432 6,931,884 8,122,328
Current 6,349,311 6,561,000 7,523,248
Development 460,121 370,884 599,080
Total-Authorized Expenditure 6,809,432 6,931,884 8,122,328
Charged 4,216,001 4,216,544 4,530,774
Voted 2,593,431 2,715,340 3,591,554
II. Expenditure on Capital Account 12,080,584 16,276,012 23,757,328
Current 11,590,966 15,783,560 23,218,557
Development 489,617 492,451 538,770
Total Authorized Expenditure 12,080,584 16,276,012 23,757,328
Charged 10,513,332 10,513,331 21,929,602
Voted 1,567,252 5,762,681 1,827,726
III. Total Expenditure met from Federal
Consolidated Fund 18,890,015 23,207,895 31,879,655
Current Expenditure 17,940,277 22,344,560 30,741,805
Development Expenditure 949,738 863,335 1,137,850
IV. Total-Authorized Expenditure 18,890,015 23,207,895 31,879,655
Charged - Total 14,729,333 14,729,875 26,460,376
Voted - Total 4,160,682 8,478,020 5,419,279Page 31
Statement of The Purpose - Demands for Grants
This statement is being provided to comply with the provisions of section 4 of the Public
Finance Management Act, 2019. Based on the policy priorities of the Federal Government,
the demands for grants have been proposed to ensure debt servicing on domestic and
foreign loans, social safety cover, housing sector (Naya Pakistan Housing), defence and
security related expenditures, pay and pensions, grants, subsidies etc. Moreover, it contains
development expenditure to provide impetus for economic growth and job creation.
With the continued challenges being faced by the Federal Government to balance the
sustainability of economic activity during the ongoing pandemic, the government’s policy
priority is focusing on economic growth, providing relief to people and businesses. It has also
been envisaged to provide targeted subsidies on essential food items in order to assist the
less well-off strata of society, energy bills and agriculture inputs.
Yusuf Khan
Secretary to Government of Pakistan
Finance Division
Islamabad, the11th June, 2021Page 32
SCHEDULE-I
DEMAND FOR GRANTS AND APPROPRIATION FOR
EXPENDITURE MET FROM THE FEDERAL CONSOLIDATED
FUND FOR THE FINANCIAL YEAR COMMENCING ON
IST JULY, 2021 AND ENDING ON
30TH JUNE, 2022Page 33
SCHEDULE - I
Demand-Wise Expenditure for Budget Estimates 2021-22
(Rs. in million)
Demand Budget Estimates 2021-22 Ministries / Divisions No. Charged Voted Total
1 Cabinet 277 277
2 Cabinet Division 2,048 2,048
3 Emergency Releif and Repatriation 387 387
4 Intelligence Bureau 8,034 8,034
5 Atomic Energy 10,818 10,818
6 Pakistan Nuclear Regulatory Authority 1,148 1,148
7 Naya Pakistan Housing Development
Authority 30,720 30,720
8 Prime Minister's office (Internal) 401 401
9 Prime Minister's office (Public) 520 520
10 National Disaster Management Authority 643 643
11 Board of Investment 367 367
12 Prime Minister's Inspection Commission 60 60
13 Aviation Division 1,483 1,483
14 Airports Security Force 8,078 8,078
15 Establishment Division 5,500 5,500
16 Federal Public Service Commission 884 884
17 National School of Public Policy 1,168 1,168
18 Civil Services Academy 635 635
19 National Security Division 144 144
Poverty Alleviation and Social Safety 20 2,155 2,155 Division
21 Benazir Income Support Prpgrame 250,000 250,000
22 Pakistan Bait-Ul-Mal 6,505 6,505
23 Climate Change Division 468 468
24 Commerce Division 26,786 26,786
25 Communications Division 204 204
26 Other Expenditure of Communications
Division 20,096 20,096
27 Pakistan Post office Department 20 14,980 15,000
28 Defence Division 3,683 3,683
Federal Government Educational Institutions 29 6,981 6,981 In Cantonments and Garrisons
30 Defence Services 1,370,000 1,370,000
31 Defence Production Division 949 949
32 Economic Affairs Division 697 697
Contd............Page 34
SCHEDULE - I
Demand-Wise Expenditure for Budget Estimates 2021-22
(Rs. in million)
Demand Budget Estimates 2021-22 Ministries / Divisions No. Charged Voted Total
Miscellaneous Expd. of Economic Affairs 33 13,187 13,187 Division
34 Power Division 330,460 330,460
35 Petroleum Division 20,639 20,639
36 Geological Survey of Pakistan 601 601
Federal Education and Professional Training 37 19,005 19,005 Division
38 Higher Education Commission (HEC) 66,250 66,250
39 National Vocational & Technical Training
Commission (NAVTTC) 399 399
40 National Heritage & Culture Division 1,738 1,738
41 Finance Division 1,980 1,980
42 Other Expenditure of Finance Division 4,834 4,834
43 Controller General of Accounts 7,720 7,720
44 Superannuation Allowances and Pensions 3,480 476,520 480,000
45 Grants Subsidies & Miscellanious
Expenditure 19,250 1,159,643 1,178,893
46 Revenue Division 77 77
47 Fedral Board of Revenue 28,800 28,800
48 Foreign Affairs Division 1,970 1,970
49 Foreign Missions 21,167 21,167
50 Housing and Works Division 5,051 5,051
51 Human Rights Division 1,185 1,185
52 Industries and Production Division 13,631 13,631
53 Financial Action Task Force (FATF)
Secretariat 85 85
54 Information and Broadcasting Division 2,755 2,755
Miscellaneous Expd. of Information & 55 6,417 6,417 Broadcasting Division
Information Technology and 56 5,872 5,872 Telecommunication Division
57 Interior Division 8,642 8,642
58 Other Expenditure of Interior Div 6,147 6,147
59 Islamabad Capital Territory (ICT) 11,430 11,430
60 Combined Civil Armed Forces 136,827 136,827
61 Inter-Provincial Coordination Division 1,661 1,661
62
Kashmir Affairs and Gilgit Baltistan Division 891 891
63 Law and Justice Division 297 5,225 5,522
64 Federal Judical Academy 210 210
Contd............Page 35
SCHEDULE - I
Demand-Wise Expenditure for Budget Estimates 2021-22
(Rs. in million)
Demand Budget Estimates 2021-22 Ministries / Divisions No. Charged Voted Total
65 Federal Shariat Court 494 494
66 Council of Islamic Ideology 140 140
67 National Accountability Bureau 5,137 5,137
District Judiciary, Islamabad Capital 68 645 645 Territory
69 Maritime Affairs Division 1,190 1,190
70 Narcotics Control Division 3,534 3,534
71 National Assembly 2,386 3,195 5,581
72 The Senate 2,199 1,548 3,748
National Food Security And Research 73 13,118 13,118 Division
National Health Services, Regulations and 74 28,074 28,074 Coordination Division
Overseas Pakistanis and Human Resource 75 1,626 1,626 Development Division
76 Parliamentary Affairs Division 482 482
Planning, Development And Special 77 5,620 5,620 Initiatives Division
78 CPEC Authority 313 313
79 Privatisation Division 215 215
80 Railways Division 42,300 42,300
Religious Affairs and Inter-Faith Harmony 81 1,231 1,231 Division
82 Science and Technology Division 10,201 10,201
83 States and Frontier Regions Division 2,621 2,621
84 Water Resources Division 523 523
Federal Miscellaneous Investments & Other 85 99,214 99,214 Loans and Avdvances
Development Expenditure of Cabinet 86 46,235 46,235 Division
Development Expenditure of Aviation 87 3,558 3,558 Division
Development Expenditure of Establishment 88 349 349 Division
Dev Exp of Poverty Alleviation & Social 89 599 599 Safety Div
90 Development Expenditure of SUPARCO 7,369 7,369
Development Expenditure of Climate 91 14,327 14,327 Change Division
Contd............Page 36
SCHEDULE - I
Demand-Wise Expenditure for Budget Estimates 2021-22
(Rs. in million)
Demand Budget Estimates 2021-22 Ministries / Divisions No. Charged Voted Total
Development Expenditure of Commerce 92 1,614 1,614 Division
Development Expenditure of 93 451 451 Communications Division
Development Expenditure of Defence 94 1,978 1,978 Division
95 Dev Exp of Survey of Pakistan 1,502 1,502
Development Expenditure of Defence 96 1,745 1,745 Production Division
97 Development Expenditure of Power Division 19,362 19,362
Development Expenditure of Federal Edu & 98 4,485 4,485 Professional Tr. Div
Development Expd. of Higher Education 99 42,450 42,450 Education Commission
Development Expd. of National Vocational & 100 5,215 5,215 Technical Training Commission (NAVTTC)
Development Expd. of National Heritage & 101 126 126 Culture Division
Development Expenditure of Finance 102 836 836 Division
103 Other Development Expenditure 122,295 122,295
Development Expenditure of Revenue 104 4,025 4,025 Division
Development Expenditure of Human Rights 105 279 279 Division
Dev Exp of Information & Broadcasting 106 902 902 Division
Development Expenditure of Information
107 Technology and Telecommunication 9,361 9,361
Division
108 Development Expenditure of Interior Division 21,049 21,049
Development Expenditure of Inter Provincial 109 3,735 3,735 Coordination Division
Development Expenditure of Kashmir Affairs 110 37,920 37,920 and Gilgit Baltistan Division
Development Expenditure of Law and 111 6,027 6,027 Justice Division
Development Expenditure of Narcotics 112 489 489 Control Division
Contd............Page 37
SCHEDULE - I
Demand-Wise Expenditure for Budget Estimates 2021-22
(Rs. in million)
Demand Budget Estimates 2021-22 Ministries / Divisions No. Charged Voted Total
Dev Exp of Natioanal Food Security and 113 12,017 12,017 Research Div
Dev Expenditure of National Health Sevices, 114 21,723 21,723 Regulation & Coord. Div
Development Expenditure of Planning, 115 106,244 106,244 Development and Special Initiatives Division
116 Dev Exp of Science & Technology Div 8,341 8,341
Development Expenditure of Water 117 92,473 92,473 Resources Division
Capital Outlay on Development of Atomic 118 27,000 27,000 Energy
Capital Outlay on Development of Pakistan 119 200 200 Nuclear Regulatory Authority
120 Capital Outlay on Petroleum Division 3,250 3,250
121 Capital Outlay on Federal Investments 699 699
Development Loans and Advances By the 122 131,346 131,346 Federal Government
External Development Lonas and Advances 123 237,850 75,866 313,716 By The Federal Government
124 Capital Outlay of Civil Works 25,157 25,157
125 Capital Outlay on Industrial Dev. 2,916 2,916
126 Capital Outlay on Maritime Affairs Div 4,462 4,462
127 Capital Outlay on Pakistan Railways 30,026 30,026
85A Provision for Pay & Pension 160,000 160,000
Staff Household & Allowances of The
… 615 - 615 President(Personal)
Staff Household & Allowances of The
… 405 - 405 President(Public)
… Servicing of Foreign Debt 302,506 - 302,506
… Foreign Loans Repayment 1,427,592 - 1,427,592
… Repayment of Short Term Foreign Credits 74,405 - 74,405
… Audit 5,953 - 5,953
… Servicing of Domestic Debt 2,757,176 - 2,757,176
… Repayment of Domestic Debt 21,617,347 - 21,617,347
Contd............Page 38
SCHEDULE - I
Demand-Wise Expenditure for Budget Estimates 2021-22
(Rs. in million)
Demand Budget Estimates 2021-22 Ministries / Divisions No. Charged Voted Total
… Supreme Court 2,810 - 2,810
… Islamabad High Court 1,086 - 1,086
… Election 3,827 - 3,827
Federal Ombudsmansecretariat for
… Protection Against Harrasment of Women at 77 - 77
Work Place
… Wafaqi Mohtasib 837 - 837
… Federal Tax Ombudsman 279 - 279
TOTAL 26,460,396 5,419,260 31,879,655Page 39
SCHEDULE -II
OBJECT CLASSIFICATION WISE EXPENDITURE
Rs. In million
Budget Budget
Object Description Estimates Estimates Code
2020-21 2021-22
A01 Total Employees Related Expenses 760,123 785,244
A011 Pay 139,369 142,480
A011-1 Pay of Officer 46,272 48,628
A011-2 Pay of Other Staff 93,097 93,851
A012 Allowances 620,754 642,765
A012-1 Regular Allowances 601,534 622,361
A012-2 Other Allowances (Excluding TA) 19,220 20,404
A02 Project Pre-investment Analysis 1,665 2,838
A03 Operating Expenses 878,151 876,486
A04 Employees Retirement Benefits 478,525 486,520
A05 Grants, Subsidies & Write off Loans 1,197,014 2,238,126
A06 Transfers 11,020 17,039
A07 Interest Payment 2,946,955 3,059,701
A08 Loans and Advances 493,792 518,828
A09 Physical Assets 384,510 430,706
A10 Principal Repayments of loans 11,512,549 23,119,418
A11 Investments 37,589 64,853
A12 Civil Works 204,878 273,092
A13 Repairs and Maintenance 6,877 6,805
TOTAL EXPENDITURE 18,913,648 31,879,655Page 40
STATEMENT OF CONTINGENT LIABILITIES OF THE
FEDERAL GOVERNMENT
This statement is prepared to comply with section 4, sub-section 3 (a) of Public
Finance Management Act, 2019, which states that Annual Budget Statement shall also
contain statement of contingent liabilities of the Federal Government. As per section 2(h) of
the Act, ‘contingent liability’ is defined as ‘a financial liability that may arise or come into
being if one or more events occur’.
2. Contingent liabilities are possible obligation that arises from past events
and their existence will be confirmed only by the occurrence or non-occurrence of one or
more uncertain future events not wholly within the control of the government.
3. Contingent liabilities should be examined in the same manner as a
proposal for a loan, taking into account, inter alia, the credit-worthiness of the borrower, the
amount and risks sought to be covered by a sovereign guarantee, the terms of the
borrowing, justification and public purpose to be served, probabilities that various
commitments will become due and possible costs of such liabilities. Hence, such off-balance
sheet transactions cannot be overlooked in order to gain a holistic view of a country’s fiscal
position and unveil the hidden risks associated with the obligations made by the government
outside the budget.
4. Contingent liabilities of Pakistan are primarily guarantees issued on behalf
of Public Sector Enterprises (PSEs). The sovereign guarantee is normally extended to
improve financial viability of projects or activities undertaken by the government entities with
significant social and economic benefits. It allows public sector companies to borrow money
at lower costs or on more favourable terms and in some cases allows to fulfil the requirement
where sovereign guarantee is a precondition for concessional loans from bilateral/multilateral
agencies to sub-sovereign borrowers.
5. The volume of new government guarantees issued during a financial year
is limited under Fiscal Responsibility and Debt Limitation Act which stipulates that the
government shall not give guarantees aggregating to an amount exceeding two percent of
the GDP in any financial year including those for rupee lending, rate of return, outright
purchase agreements and other claims and commitments provided the renewal of existing
guarantees shall be considered as issuing a new guarantee.
6. During July 2020 to March 2021, the government issued fresh/rollover
guarantees/Letter of Comforts (LoCs) aggregating to Rs 83 billion or 0.2 percent of GDP.
The total executed guarantees were Rs 2,756 billion while outstanding stock was Rs 2,410
billion at end March 2021 as per the following details:Page 41
Table-1: Summary of Outstanding Government
Guarantees
(All figures are
Rs in billion
unless
otherwise
stated)
Domestic 1,613
External 796
Total Outstanding 2,410 Government Guarantees
Memo:
External (US$ in million) 5,213
Exchange Rate (Pak 153 Rupee/US Dollar)
7. Sector-Wise share of the above guarantees is as follows:
Table 2: Sector Wise Government Guarantee
Outstanding (PKR in Billion)
End March 2021
% Sector Drawn Share
Power Sector 1,990 83%
Aviation 203 8%
Financial 66 3%
Manufacturing 45 2%
Oil and Gas 55 2%
Other 51 2%
Total 2,410 100%Page 42
8. Guarantees issued against commodity operations are not included in the
stipulated limit of 2 percent of GDP as the loans are secured against the underlying
commodity and are essentially self-liquidating. These guarantees are issued against the
commodity financing operations undertaken by TCP, PASSCO, and provincial governments.
The outstanding stock of commodity operations was Rs 701 billion at end March 2021.
9. The existing guarantees constitute around 6 percent of GDP and
government is committed to maintain or reduce this exposure in the upcoming fiscal year.
Yusuf Khan
Secretary to Government of Pakistan
Finance Division
Islamabad, the11th June, 2021Page 43
Statement of Fiscal Risks
As required under Section 4(3)(b) of the Public Finance Management Act, 2019,
the Annual Budget Statement shall also contain a statement of fiscal risks.
It is therefore expedient to highlight risks, which might lead to any revision in fiscal
forecasts approved by the Federal Government in Medium Term Budget Strategy Paper
under section 3 of the Public Finance Management Act, 2019. Principle of ‘reasonableness’
has been followed depicting only those fiscal risks which might materialize during fiscal year
2021-22 and in the medium-term.
Economic risks: Corona’s third wave has hit Pakistan and if the situation blows
out of proportion, the fiscal forecasts may change slightly or substantially depending upon
the severity of the pandemic. Resultantly, the economic growth will be impacted with
reduction in revenues and increase in Corona-related expenditures. However, the
government has taken a number of initiatives to provide stimulus to the economy to off set
the impact of Corona.
Losses of power sector: Whereas the government has put in place necessary
safeguards to minimize the losses of power sector including reduction in the pace of
accumulation of circular debt, there are a couple of risks which may impact the fiscal
forecasts 1) continuation of flow of energy sector losses, and 2) non-payment of arrears and
liabilities. These risks may impact government’s fiscal position if such arrears and liabilities
are required to be paid through the budgetary process.
Losses of State Owned Entities (SOEs): The government provides financial
support to SOEs in the form of guarantees, grants, loans, equity investments etc if the
situation so warrants. If the losses of SOEs continue, provision of financial support by the
Government may impact the fiscal forecasts. However, the Government has approved a
legal framework to improve governance of PSEs and has placed State Owned Enterprises
(Governance and Operations) Bill 2021 for approval of the Parliament. Furthermore, the
Government has also initiated the requisite work to gauge the performance of PSEs to
decide whether to sell, liquidate or retain the existing SOEs.
Budget Surplus of Provinces: The provinces take a substantial share of national
revenues however the federal government being liable for the debt servicing, security,
Communications, Higher Education etc. Therefore, the structural fiscal balance has become
lopsided. The situation is unsustainable unless an appropriate adjustment occurs in the
structural fiscal balances of federal and provincial governments. The government has formed
10th National Finance Commission with the view to deliberate on options leading to fiscal
harmonisation. In the context of this fiscal risk, excessive spending by the Province and low
generation of own source incomes and revenue may lead to fiscal adjustment.Page 44
Natural disasters: Natural disasters including floods, earthquakes, droughts etc
has adversely impacted the fiscal projections in the past. So, such hazards being natural and
unpredictable may also affect the fiscal forecasts.
Conclusion: The Government is committed to off-set the impact of these fiscal
risks, if occur, with better and efficient public financial management under the PFM reforms
already initiated. Moreover, the SOEs Bill 2021 will also set the direction with regard to
professional management of the state owned entities. The reforms in power sector have also
been started which will improve the governance and management of the Distribution
Companies. The agreements with IPPs have also been re-negotiated with a view to
decrease the cost of electricity.Page 45
STATEMENT OF ESTIMATED TAX EXPENDITURE
Section 8 of the Public Finance Management Act, 2019 provides that the
Federal Government shall, in respect of every financial year cause to be laid before the
National Assembly, Finance Bill consistent with Article 73 of the Constitution including a
statement of estimated tax expenditure of the Federal Government.
2. A Tax Expenditure statement providing the detail of tax expenditure in FY
2021 which involves tax expenditure in sales tax of Rs. 578.456 billion, a tax expenditure in
income tax of Rs. 448.046 billion, and tax expenditure in Customs Duty of Rs. 287.771
billion, arriving at a total estimated tax expenditure of Rs. 1314.273 billion is being laid before
the Parliament.
Asim Ahmad
Chairman FBR
Dated: 11-06-2021Page 46
Medium Term Budgetary Statement
(2021-22 to 2023-24)
Government is laying before the National Assembly a Medium Term Budgetary
Statement in pursuance of Section 5 of the Fiscal Responsibility and Debt Limitation Act,
2005. This statement is consistent with the country’s overall macroeconomic framework.
2. The year 2020-21 was a year of economic recovery backed by incentives to various
quarters of the economy. Pakistan’s economy has shown strong signs of revival after being
hit by the Covid-19 pandemic. The Government has taken timely response measures to
combat this daunting challenge. These measures have mitigated the socio-economic
impacts of the pandemic. Policies introduced during the year like smart lockdowns, stimulus
relief package worth Rs. 1.24 trillion and unprecedented concessions granted to the
construction and SME sectors have yielded positive results.
3. The major step undertaken on the fiscal front during the Current Financial Year (CFY
2020-21) were to keep an appropriate balance between the Covid-19 related expenditures
and fiscal deficit. Furthermore, public finance management reforms continued to increase
transparency and accountability of public funds. For the protection of vulnerable segments of
the society, the government proactively responded by implementing various components
under Ehsaas Program and by combating inflation through price control and monitoring. On
the external front, various policy actions were undertaken including bilateral and multilateral
arrangements, IMF program continuity and exchange rate stability in the backdrop of strong
foreign exchange reserves, as well as reviving export industry. Consequently, the economy
picked up and is moving towards sustained economic growth.
4. Over the medium-term a number of important policy measures will be taken. These
policy measures will broadly include reduction of budget deficit, revenue mobilization,
maintaining the policies of no borrowings from State Bank of Pakistan for budget financing,
flexible exchange rate, structural reforms in public entities including privatisation, reforms in
energy sector (electricity and gas) and circular debt management , increase in public
investments in management of water, implementation of projects under China-Pakistan
Economic Corridor, strengthening energy transmission and distribution system,
implementation of national tariff policy, implementation of special economic zones, etc.
5. The context and strategy for FY 2021-22 year budget hovers around fostering
sustained and inclusive growth, horizontal and vertical expansion of social safety net to
support the vulnerable segments of the society and successful continuation of IMF program.Page 47
Moreover, providing impetus to the economic activity through higher public development spending and consequently supporting job creation. Funding for special initiatives led by the Prime Minister like Kamyab Jawan, Sehat Sahulat Card, Naya-Pakistan Housing Scheme, House Financing Mark-up, Collateral free lending to SMEs etc. have also been protected. In wake of Covid-19 and additional measures by the government to improve the economic outlook, no new taxes shall be introduced in 2021-22 budget. FBR collection however, will increase through improvement in tax system, broadening tax base and strengthening of administrative controls through technological inventions. Other measures include withdrawing tax exemptions, rationalizing concessionary regime, simplifying tax rules and ensuring tax compliance. Furthermore, ensuring better financial management and fiscal discipline, by striking a balance between relief measures and fiscal deficit to keep the primary balance at a sustainable level. 6. For sustained economic growth in medium term it is imperative for the Federal government to accordingly pursue a multipronged strategy with focus on revenue mobilization, rationalization of recurrent expenditures to provide space for development/ capital expenditure, support for the driver sectors of the country’s economy and increase the foreign exchange earnings for management of current account and easing off pressure on the Rupee (PKR).
Page 48
Key Medium Term Macroeconomic &
Budgetary Indicators
Projections Budget Revised Budget for
Description
2020-21 2020-21 2021-22 2022-23 2023-24
Real GDP Growth (%) 2.1 3.9 5.0 5.7 6.4
Inflation (%) 6.5 9.0 8.2 7.2 6.4
As % of GDP
Total Federal 14.4 13.4 14.7 14.9 14.9Revenue
Tax Revenue 10.9 9.8 10.8 11.5 11.8
Non Tax Revenue 3.5 3.6 3.8 3.3 3.0
Total Federal 15.7 15.4 15.8 14.6 13.2Expenditure
Current 13.9 13.8 14.0 12.8 11.4
Development 1.7 1.6 1.8 1.8 1.8
Overall Fiscal -7.0 -7.1 -6.3 -5.3 -3.9Balance
Primary -0.5 -1.2 -0.7 0.2 1.2 Balance
Public Debt 87.6 83.1 81.8 79.1 73.9
GDP at market
45,567 47,709 53,867 60,811 70,151prices (Billions)Page 49
Government of Pakistan
Finance Division
STATEMENT OF RESPONSIBILITY UNDER SECTION 10(1)(a)
OF FISCAL RESPONSIBILITY AND DEBT LIMITATION ACT
2005
Stated that all policy decisions with material economic or fiscal implications that the
Federal Government has made before 11th June 2021, the day on which the contents of the
Medium Term Budgetary Statement were finalized and all other circumstances with material
economic or fiscal implications of which I was aware before that day, have been
communicated to the Secretary, Finance Division.
The statement to the best of my knowledge provides for
a) the integrity of the disclosures contained in the economic policy statement;
b) the consistency with requirements of this Act of the information contained in the economic
policy statement; and
c) the omission from the economic policy statement of any decision or circumstance specified
in sub-section 3 of section 8 of the Act.
(Shaukat Fayaz Ahmed Tareen)
Minister for Finance and RevenuePage 50
Government of Pakistan
Finance Division
STATEMENT OF RESPONSIBILITY UNDER SECTION 10(1)(b)
OF FISCAL RESPONSIBILITY AND DEBT LIMITATION ACT
2005
Stated that the Finance Division has supplied to the Minister for Finance and
Revenue, using its best professional judgment on the basis of economic and fiscal
information available to it before 11th June 2021, the day on which the contents of the
Medium Term budgetary Statement were finalized, incorporating the fiscal and economic
implications of those decisions and circumstances, but any decisions or circumstances that
the Minister for Finance and Revenue has determined under Sub-section (3) of Section 8 of
the Fiscal Responsibility and Debt Limitation Act 2005 have not been incorporated in the
Medium Term Budgetary Statement.
Yusuf Khan
Secretary to Government of Pakistan
Finance Division
Islamabad, the11th June, 2021