federal budget of Pakistan

1. Federal budget

2. Definition of a Budget
A budget is a microeconomic concept that shows the tradeoff made when one
good is exchanged for another.
An estimation of the revenue and expenses over a specified future period of time.
A budget can be made for a person, family, group of people, business,
government, country, multinational organization or just about anything else that
makes and spends money.

3. What is Govt. budget
A govt. budget is a govt. document presenting the govt. proposed revenues and
spending's for a financial year that is often passed by the legislature , approved
by the chief executive or president and presented by the finance minister to the
nation.

4. Federal budget
• The federal budget is a country is determined yearly and forecasts the
amount of money that will be spent in a variety of expenses in the upcoming
year.

5. The Budget Cycle
Each year, the budget follows a predetermined cycle:
Preparation of the budget
Consideration, debate and approval of budget
Communication of Grants
Budget implementation / Execution
Post budget Allocation
Budget auditing

6. The Budgeting Process
Executive Budget
Prepared by chief executives or the president within a government's executive
branch, the governor at the state level, the county executive at the county level,
and the mayor at the municipal level.
Legislative Budget
Prepared by a body of elected representatives, the state legislature or city
council.

7. Types of Budget
 Capital
 Operating
 Line-Item
 Performance
 Zero-Based

8. Public Budgets
Capital Budget
Operating Budget

9. Capital Budget
• 'Capital Budgeting' The process in which a business determines
whether projects such as building a new plant or investing in a long-term
venture are worth pursuing.
 A long-term plan that deals with the financing of capital projects, investments
that include buildings, bridges, and quality of life projects such as parks.
 Financed through borrowing, usually in the form of bonds. States, counties,
municipalities issue bonds to raise revenue.
 Investors buy the bonds and earn interest on them.

10. Operating Budget
 A short-term, year-to-year budget that plans how resources be allocated for
government agencies and programs.
 Based on estimates of income and expenses associated with the organization’s
operations.
 Administration, marketing, labor, manufacturing, and any other production
associated costs are included, whereas long-term items such as capital debt and
income not associated with company operations, such as investments are
excluded.

11. Line-Item Budget
Most popular among local governments, given its relative simplicity.
Illustrates where public money will be spent item by item.
The amount that will be spent is clearly defined to keep spending under control.
Simple tool for keeping tabs on where money goes, ensuring that funds are spent
appropriately.
Personnel costs, office supplies, and the like are projected each year and are
lined up beneath one another.

12. Performance Budget
Commonly used by the government to show the link between the funds provided
to the public and the outcome of these services.
Allocation of funds and resources are based on their potential results.
Place priority on employees' commitment to produce positive results, particularly
in the public sector.
Reflects the input of resources and the output of services for each unit of an
organization.

13. Zero-Based Budget
Starts from a "zero base" and every function within an organization is analyzed
for its needs and costs.
Budgets are then built around what is needed for the upcoming period.
All expenses must be justified for each new period.
All departments must defend their programs and consequently their level of
funding each year.
Department head must demonstrate how different levels of funding would impact
the delivery of a given program’s services.

14. Budget Surplus
Budget Surplus = Savings
A company's or individual's income exceeds its expenditures over a particular
period of time.
The amount by which government revenues exceed government spending.
A surplus is considered a sign that government is being run efficiently.
Used to pay off debt, save for the future, or to make a desired purchase that has
been delayed.

15. Budget Deficit
Budget Deficit = Shortfall
A company’s or individual's liabilities exceeds its assets over a particular period
of time.
The amount by which government spending exceeds income in any one fiscal
year.
Financed by borrowing money and paying interest on the borrowed funds.

16. Program Spending
Discretionary Spending
Programs that are deem discretionary must have funding approved each year.
 ie. Defense, Education, and Housing
Entitlement Spending
Funding for entitlement programs are mandated by law.
 ie. Social Security and Medicare

17. Federal budget of Pakistan
2015 - 16

18. Govt. to target industry,
agriculture in budget 2015 - 16
Federal Minister for planning and development Ahsan Iqbal has said that
government’s main target in budget 2015-16 is to strengthen industrial and
agriculture sectors through incentives. Talking to a private news channel, the
minister informed that the government would achieve 5.5 percent growth rate
this year, next year 6 to 6.5 % and it will try to achieve 7.5 percent growth rate
in third fiscal year.

19.
PAK Budget 2015-2016 Highlights

20. Highlights

21. Highlights

22. Highlights

23. Highlights

24. Highlights

25. Highlights

26. Khyber pakhtunkhawa package
• Exemption in taxes
• KPK allowed to do business with Afghanistan in Pakistani rupee.
• 7.5% increase in Govt. employees salaries.
• sales tax on agricultural machines to be reduced from 17% to 7%.

27. Criticism on Pakistan Budget
2015-16
• The growth rate of 5.5 % has been promised by the finance minister of
Pakistan for the fiscal year 2015-16. But what the people are not told is how
achievable actually is this target, keeping in view that the target set in the
previous year was also not achieved.
• Every year the Defense budget gets a boost and this year it constitutes 16.2
% of the total budget.
• The priorities of government should be clear in front of people. The reality of
unjust and unwise allocation of funds is often wrapped and hidden in
sentimental and sweet talk. If figures are kept in mind it seems that railway
and even the metro project is more important to this nation than education
as the budget allocation of railway triumphs that of education.
• Pakistan is an agricultural country and its agricultural sector also gets
ignored despite the fact that it employs 37 % of the labor

28. Challenges
• 1. Poor governance and corruption
• 2. Economic Policies
• 3. We Consume More and Save Less.
• 4. We Import More and Export Less.
• 5. We Face Energy and Water Shortages
• 6. Cost of Doing Business is high.

29. The End
Thanks