Budgeting Process in Pakistan (Assigment) PDF

Budgeting process in Pakistan
Introduction of research scholar Introduction of Supervisor

Name: Imama Khalid Name: Dr Sajida Begum
Roll No: 01 Designation: Professor
Class: M.Phil. political Science Department: Political Sci
Session: 2023-2025 Institute Minhaj University
School of Political Science

Faculty of Humanties and Social Sciences
MINHAJ UNIVERSITY LAHORE

(1)
Introduction
Since we all knows that budget is a tool that allows you
to manage your income, expenses, and financial objectives
over a given period of time. A nation's budget paints a picture
of its social and welfare goals as well as its financial and
fiscal goals. It also evaluates the government's policies, both
on the home and international fronts. It conveys an outlook
for the future of its populace. The budget's decisions and the
corresponding allocations they make have a big influence on
society's socioeconomic situation.
The future of the ruling party or incumbent
government—those who create, explain, and carry out the
budget—is a critical factor in emerging nations like ours and
in democracies generally. In this sense, the budget is also a
component of the campaign for the upcoming election, which
benefits the ruling party unquestionably.
Furthermore, because of its absolute significance, It holds
a special position within the parliament's apparatus.
Throughout the fiscal year, it is one of the most important
pieces of legislation that is discussed and approved there. The
process of laying the groundwork, deciding on, discussing,
endorsing, implementing, and overseeing the budget's
execution has particular significance in any democratic system
due to its great prominence. Various strategies and tactics are
used globally to ensure that the budget is inclusive.
(2)
In recent years, Pakistan's federal budget has become
increasingly important due to the nation's rapidly deteriorating
economic circumstances. Reforms to Pakistan's budget
making process are obviously urgently needed, especially
given the country's current financial predicament. Below
mentioned discourse will let you know about the budgeting
process in Pakistan.
Objectives
(1) The core motive of this writing is to provide
information about budgeting process in Pakistan.
(2) Give a sneak peak about the inner mechanism of state
as organization of collecting tax and funds and
utilizing them as assets to function.
(3) How does budget finalizes and distributed.
Socioeconomic & practical Significance

1. Financial Stability and Economic Stability: The
budget also acts as a check on the economy's
potential for large swings in either direction. This is
accomplished by implementing tactical measures
like creating a budget deficit during periods of
deflation and surplus during periods of inflation.
2. Budgeting not only estimates the expenditures but it
also assures the practical aid to sort the issues where
the state is lacking as whole it also helps in
(3)
navigating the paths to fulfill each little mechanism

of organization working for the greater good of
Pakistan.
3. Budgeting Impacts societal functioning in both
positive and negative ways budget deficit causes DE
functioning in social order such as inflation,
imbalance in demands and supplies and on the other
hand budget that collides with demands and
supplies bring prosperity as whole since from the
last decade Pakistan is facing traumatizing poor
economic era due to several economic factors.
Research Questions
1) How does budget forms in Pakistan?
2) What are the possible measure and procedures of
formulating budget in Pakistan
3) What are the how’s and do’s of budget processing in
Pakistan?
4) What is the importance of gathering estimated data of
possible expenditure while formulating budget?
5) How “Budget Call Circular” does initiate the budgeting
process in Pakistan?
6) How does budget reaches to the desk of president of
Pakistan for approval, Explain stage by stage?
7) How does budgeting navigate the route of expenses and
generating revenues, Explain?
8) What is budgeting in Pakistan?
(4)
Review of literature
Under mentioned references of articles and readings are
relevant to budgeting process in Pakistan that may help in
better understanding.
News article:
(2023, June 08).Who makes Pakistan’s budget and how they
can do better. DAWN, P.7.
Constitutional reference:
Article 73: procedures with respect to money bills “when a
Money Bill, including the Finance Bill containing the Annual
Budget Statement, is presented in the National Assembly, a
copy thereof shall be transmitted to the Senate which may,
within fourteen days, make recommendations thereon to the
National Assembly; and] 35[(1A) The National Assembly
shall consider the recommendations of the Senate and after the
Bill has been passed by the National Assembly with or
without incorporating the recommendations of the Senate, it
shall be presented to the President for assent.”
Article 77: tax to be levied by law only. “No tax shall be

levied for the purposes of the Federation except by or under
the authority of Act of Majlis-e-Shoora (Parliament)”.
Article 80: annual budget statement: “The federal government

shall, in respect of every financial year, cause to be laid before
the National Assembly a statement of the estimated receipts
and expenditure of the Federal Government for that year, in
this Part referred to as the Annual Budget Statement”.
(5)
Article 81 tells us about the expenditure charged upon Federal
Consolidated Fund.
Journal article:
W, Richard.(1983).Planning and budgeting in Pakistan.

Public administration and development;
https://doi.org/10.1002/pad.4230030205.
Book reference
Khan, M Nawaz(2010).Government budgeting in Pakistan.
Michigan,USA: Audit & Accounts Training Institute,1989.
Online source:
Pakistan: moving to a medium-term budgetary framework,
https://www.opml.co.uk/projects/pakistan-moving-to-a-
medium-term-budgetary-framework
By David Holes
Research design and methodology:
Budgeting process is Pakistan is quite a complex process
since Pakistan is a federal parliamentary state where budget is
been allocated to departments and ministries as per the data od
expenditures and required funds being collected by qualitative

(6)
And quantative methods and sometimes budget being given to
departments on the assumed expenditures.
Ironically, there is no particular methodology and no hard and
fast rules here in Pakistan for data collection for budgeting for
the whole state it uses the mix methodologies for formulation
of budget so do this assignment, is going to exponent the
salient procedures and processing of budget in Pakistan.
A.The 'Budget Call Circular', sent by the Ministry of
Finance to all federal ministries, divisions, and provincial
governments, starts the budgetary process in Pakistan.
The ministries then create plans outlining their
anticipated income and expenses.
B. The Ministry of Finance examines and compiles the
estimates of expenditure and revenues that spending
departments create and submit during the second stage of
budget preparation.
(7)
C. Authorization, the third step, is presenting the Annual
Budget Statement (ABS) to the assembly. There are two
phases to this process: the assembly must approve it after
debating and discussing it, and the prime minister and
chief ministers of the corresponding province legislatures
must authenticate it. The "Schedule of Authorized
Expenditure" (SAE), which is the authorized budget, is
subsequently given to the governor or president for
approval.
D.Execution is the fourth step. The budgets are sent by the
Ministry of Finance to the relevant accountant general's
office, expenditure ministries, and administrative
departments at this point. Now that the authorized
spending caps have been reached, the spending
departments can proceed with their scheduled operations
and incur costs.
E. At order to enable tracking of progress against budgetary
allotments during the fiscal year, the spending

(8)
Departments document and report actual expenditures and
revenues in the fifth stage of reporting and monitoring. The
accountant general's office keeps track of expenditures.
And last but not the least the budget of Pakistan got checked
and monitored by the accounts offices and departments and
reviews on budgeting and accounts review being evaluated by
the auditor general of Pakistan and by the public account
committee, The authority to examine the spending of
ministries under their purview also extends to standing
committees of the national and relevant provincial assemblies.
Delimitations and limitations
While writing down this respective assignment and gathering
data for it I had to face some hindrances like non availability
of data like how funds circulates on lower levels of
administration of provinces and their divisions and above of
all state level, so I had to limit the assignment material to

(9)
budgeting process in Pakistan, Though it can be examine in
the light of budgeting flaws and the level of transparency of
budget distribution in short there are plenty of paradigms in
which budgeting in Pakistan can be explained and critically
examined but as per the given topic I had the limit my search
just to budgeting process in PAKISTAN.

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Budgeting process in Pakistan

Introduction of research scholar Introduction of Supervisor

School of Political Science

MINHAJ UNIVERSITY LAHORE

Socioeconomic & practical Significance

navigating the paths to fulfill each little mechanism

Article 77: tax to be levied by law only. “No tax shall be

Article 80: annual budget statement: “The federal government

W, Richard.(1983).Planning and budgeting in Pakistan.

Pakistan: moving to a medium-term budgetary framework,

Research design and methodology:

Budgeting process is Pakistan is quite a complex process

since Pakistan is a federal parliamentary state where budget is

been allocated to departments and ministries as per the data od

expenditures and required funds being collected by qualitative

And quantative methods and sometimes budget being given to

departments on the assumed expenditures.

Ironically, there is no particular methodology and no hard and

the whole state it uses the mix methodologies for formulation

of budget so do this assignment, is going to exponent the

salient procedures and processing of budget in Pakistan.

A.The 'Budget Call Circular', sent by the Ministry of

Finance to all federal ministries, divisions, and provincial

governments, starts the budgetary process in Pakistan.

The ministries then create plans outlining their

anticipated income and expenses.

B. The Ministry of Finance examines and compiles the

estimates of expenditure and revenues that spending

departments create and submit during the second stage of

Budget Statement (ABS) to the assembly. There are two

phases to this process: the assembly must approve it after

debating and discussing it, and the prime minister and

chief ministers of the corresponding province legislatures

must authenticate it. The "Schedule of Authorized

Expenditure" (SAE), which is the authorized budget, is

subsequently given to the governor or president for

D.Execution is the fourth step. The budgets are sent by the

Ministry of Finance to the relevant accountant general's

office, expenditure ministries, and administrative

departments at this point. Now that the authorized

spending caps have been reached, the spending

departments can proceed with their scheduled operations

and incur costs.

E. At order to enable tracking of progress against budgetary

allotments during the fiscal year, the spending

revenues in the fifth stage of reporting and monitoring. The

accountant general's office keeps track of expenditures.

and monitored by the accounts offices and departments and

reviews on budgeting and accounts review being evaluated by

the auditor general of Pakistan and by the public account

committee, The authority to examine the spending of

ministries under their purview also extends to standing

committees of the national and relevant provincial assemblies.

Delimitations and limitations

While writing down this respective assignment and gathering

data for it I had to face some hindrances like non availability

of data like how funds circulates on lower levels of

administration of provinces and their divisions and above of

all state level, so I had to limit the assignment material to