Budget
Flash #2
Rs189.97 billion for the provinces from the federal
receipts
Bureau Report
ISLAMABAD: The federal government here on Monday earmarked a sum
of Rs189.97 billion for the provinces from the federal receipts
for 2001-2002 on the basis of National Finance Commission (NFC)
Award of 1996 against last year's estimates of Rs182.24 billion.
Out of this total allocated amount, under NFC formula Punjab
will get the lion share i-e 57.88 per cent followed by Sindh 23.28
per cent, NWFP 13.54 percent and Balochistan 5.3 per cent.
Although, this year an increased allocation for the provinces
to the tune of about Rs5billion has been shown in the budget
documents, however the same documents revealed that last year
(2000-2001) the provinces faced serious financial problem at the
hand of Finance Ministry bosses as the federal government actually
did not transfer a huge sum of Rs13billion to them from their due
share.
Against the estimated amount of Rs182.2 billion earmarked for
the provinces in 2000-2001, the NWFP, Punjab, Balochistan and
Sindh, actually got Rs169.983 billion thanks to short revenue
collection by federal government concerned agencies.
According to available break up of last year (2000-2001) actual
releases to the provinces, Punjab was given Rs85.557billion
against actual allocation of Rs93.473billion- a loss of about
Rs8billion, Sindh got about Rs2 billion less as against the
allocation of Rs49.54billion, it got Rs47.75billion, NWFP was
supposed to get Rs21.22billion, but it received Rs19.21billion- a
cut of about Rs2billion and Balochistan got Rs17.2 billion against
the allocation of Rs18.21billion- a cut of about Rs1bilion.
Now according to budget document for 2001-2002, during the next
fiscal the federal government has estimated to give Rs96.786 to
Punjab against last year estimation of Rs93.47billion, Sindh
Rs52.86 billion against last year of Rs 49.54billion, NWFP to get
Rs21.788billion against last year estimation of Rs21.2 Billion and
Balochistan is projected to get Rs18.534billion against to
Rs18.2billion.
As far as the share of provinces in the federal receipts for
the year 2001-2002 is concerned, Rs50.829billion are estimated to
be given to the provinces from income tax head against last year
of Rs46.75billion. But the actual release was
Rs44.327billion-Rs2.4billion less.
Rs71.3 million will go to provinces from wealth tax against
last year allocation of Rs375.8 million of last year. The actual
release was however higher as the provinces got Rs645million.
Rs276.5 million has been earmarked for next year from capital
value tax head, Rs17.246 billion will be given from federal excise
(net of gas), sales tax Rs65.26billion, Customs Duties
Rs24.795billion, Rs10.22 billion on account of royalty on crude
oil and gas, Rs14.7billion will be paid to the provinces on
surcharge on gas (net), excise duty on natural gas Rs4.5billion
and the provinces will get
Rs1.9billion on account of GST on services.
Budget Flash #3
Govt. prepares Medium Term Budgetary Framework
Mariana Baabar
ISLAMABAD: The government for the first time this year, has
prepared a three
year perspective plan, called the Medium Term Budgetary Framework
(MTBF),
which it hopes will give it better knowledge and management of
resources and
expenditure required in future.
This will include growth, inflation, investment and savings
revenues,
expenditure and balance of payment in the next three years.
The government is expecting the economy to revive in the next
three years
with the real growth rate of GDP increasing from 4% in 2001-2002
to 5.2% in
2003-2004. This increase in growth rate is due to higher rate of
growth in
agriculture and other sectors and continued recovery of large
scale and
small scale manufacturing. Inflation is expected to remain steady
at 5%.
The MTBF as far as Growth and Inflation is concerned is
expected to show
in the area of Agriculture 4.0% in 2001-2002, 4.7% in 2002-2003,
and 5.2% in
2003-2004.
In Manufacturing (Large Scale), the increase is expected to be
2.0% in
2002-2002, 4.7% in 2002-03 and 4.5% in 2003-04.
In Manufacturing the increase is expected to be 6.5% in
2001-02, 6.8% in
2002-03, 7.0% in 2003-04.
In other sectors the increase which is expected is , 4.15 in
2001-02,
4.2% in 2002-03, and 5.1% in 2003-04.
The MTBF sees increased investment in the coming years.
Fixed
investment, as percentage of GDP, is expected to increase from
13.6% to
15.0%. Domestic savings will be financing this increased
investment but
foreign savings may decrease from 2.2% in 2001-02 to 1.5% of GDP
in 2003-04.
In Investments and Savings , Investment as percentage of GDP
will show an
increase of 15.2% in 2001-02, 15.8% in 2002003 and 16.5 % from
2003-04.
In the area of Fixed Investment in Public Sector there will
increase of
13.6% in 2001-02, 14.2% in 2002-03 and 15.0% in 2003-04.
While Fixed Investment in the Private Sector , increase will be
7.9% in
2001-02, 8.4% in 2002-03 and 9.0% in 2003-04.
In the area o Savings , National Savings sees 13.0% in 2001-02,
14.1% in
2002-03 and 15.0% in 2003-4.
In Foreign Savings, the increase is expected to be 2.2% in
2001-02, 1.7% in
2002-03, and 1.5% in 2003-04.
CBR revenues are expected to increase in the next three years.
This will not
only help finance greater allocations for the Development
expenditure but
also help lower the overall fiscal deficit from 4.9% of GDP in
2001-02 to
3.6% of GDP in 2003-04.
In the area if Public Finance, total revenue sees in billions,
642.6% in
2001-02, 718.5% in 2002-03, and 816.7% in 2003-04.
CBR Revenue will see457.7% . in 2001-02, 523.0% in 2002-03 and
600% in
2003-4.
Total expenditure sees an increase of 829.0% in 2001-02, 897.7%
in 2002-03,
and 986.7% in 2003, 04.
Current Expenditure sees in the next three years an increase of
701.6%,
763.5%, 829.7%.
PSDP (Public Sector Development Program) sees an increase in
the next three
years, as 130.0%, 140.0%, 165.0%.
Exports are expected to rise at a faster rate than imports,
decreasing the
balance of trade from US$ 913 million in 2001-02 to US$ 405
million in
2003-04.Current account deficit is expected to improve from US$
1341 million
in 2001-02 to US$ 994 million in 2003 -04.
Balance of Payments are expected to increase in the area of
Exports (FOB) in
millions of US dollars as, in the next three years as, 9849.0,
10834.0,
11917.0.
Imports (FOB) will see -10762.0, -11462.0, -12322.0.
Trade balance is -913.0, -628.0, -405.
Current Account Deficit shows, -1341.0, -1065.0, and -994.0
Audio Budget speech (mp3 format): 
