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Budget in Brief 2020-21

The Budget in Brief 2020-21 is part of the federal budget for FY 2020-21. This page reproduces the text of its 47 PDF pages, extracted automatically from the official PDF published by the Finance Division, Government of Pakistan.

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Page 1

  FEDERAL
BUDGET
 2020-21

 BUDGET
     IN
   BRIEF

 Government of Pakistan
    Finance Division
       Islamabad

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No text layer on this page, see the official PDF.

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                 PREFACE

      Budget in Brief is a synopsis of the Federal Budget 2020-21, which
is being published to provide concise information in simple manner for
understanding of readers.
      Before providing information about the next year budget, measures
taken by the government on path to stabilization, adverse impacts of
Covid 19 and government response have been highlighted. Furthermore
the budget philosophy and approach have been briefly explained.

      ‘Budget at a Glance’ offers a quick overview of the federal budget
2020-21 while information on fiscal deficit and financing has also been
tabulated. The Budget Estimates have been added along the comparison
of budgetary position of fiscal year 2020-21 viz-a-viz outgoing fiscal year
2019-20.
      This  document  offers  a  bird  eye  view  on  revenues  and
expenditures, budgeted  for  fiscal  year 2020-21 as  well as  budget
estimates for the fiscal year 2019-20. The details of subsidies, grants and
transfers along with break-up of current  / development  / investments for
ensuing fiscal year has also been given. Further, a detail of provincial
share in Federal taxes has been given.
       Detailed information is available in the relevant budget documents
i.e Annual Budget Statement and Explanatory Memorandum on Federal
Receipts.
        After the Budget presentation in the National Assembly, budget
books, including the Budget in Brief, are uploaded on the website of the
Ministry of Finance: www.finance.gov.pk.
           I hope that this document will be useful to all those who seek a
simple understanding of Budget 2020-21.

                                Naveed Kamran Baloch
                               Secretary to Government of Pakistan

Finance Division
Islamabad, the 12th June, 2020

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                C O N T E N T S

                                                   Page
Focus of Government of Pakistan                            1
First 9 Months of FY 2019-20                                1
Covid 19 changed all                                      2
Government Response                                     3
Budget Philosophy and Approach                               3-4
Table - 1:   Budget at a Glance for the Fiscal Year 2020-21             5
Table - 2:   Working of Fiscal Deficit & Financing Budget 2020-21       6
Table - 3:   Budget Estimates 2020-21                             7
Table - 4:   FBR Taxes                                         8
Table - 5:   Revenues other Than FBR                                8-9
Table - 6:    Details of Transfers to Provinces                         9-10
Table - 7:    Capital Receipts                                     10
Table - 8:    External Resources                                  11
Table - 9:    Current and Outside PSDP Expenditures                 11-12
Table - 10:   Function Wise Expenditure                            12
Table - 11:   Subsidies                                          13
Table - 12:   Grants and Transfers                                  13-14
Table - 13:   Current Investments                                  15
Table - 14:   Distribution of PSDP                                   15-17

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Focus of Government of Pakistan - To Improve Fiscal Discipline
     The Government took following steps to improve the Fiscal Discipline:
     a)   Implementation   of  Public  Finance  Management  Reforms  and  Cash
        Management System leading towards Treasury Single Account
     b)   Austerity and restructuring of the Federal Government to lessen financial
          burden.
      c)  No borrowing from SBP for budget financing
     d)  No supplementary grants approved
     e)   Maintain a Primary Surplus
        f)   To facilitate PSDP spending bottlenecks in efficient release of funds were
        removed
     g)   Existing stock of public guarantees was capped by the government
     h)   Refunds of Rs 254 billion issued to the business community which are 125%
        more than Rs 113 billion issued last year. Additionally, Rs 35 billion have been
          provided for payment of DLTL claims
         i)   Launching of flagship “Ehsaas” program to improve cash transfers to the
          poorest segment of society through better targeting
         j)    Historic package  of Rs 152  billion  to  the merged  districts  of Khyber
         Pakhtunkhawa to ensure their development
First 9 months of FY 2019-20 - On the Path to Stabilization
     The policy decisions of the Government helped in stabilizing the economy and
bringing in improvement in major economic indicators during the first 9 months of the FY
2019-20.
       a)   Current Account deficit reduced by 73% from $ 10 billion to $ 3 billion
       b)  Trade deficit decreased by 31% from $ 21 billion to $ 15 billion
       c)   Fiscal deficit reduced from 5% to 3.8% of the GDP

Page 8

       d)   Primary surplus of 0.4% of the GDP achieved first time in last 10 years
       e)  FBR revenue increased by 17% and the government was on track to achieve
           the revised target of Rs 4,800 billion
          f)  Non tax revenue increased by 134 % against the annual target of Rs 1,161
              billion
       g)  Remittances increased to $ 17 billion.
       h)   Foreign direct investment almost doubled from $ 0.9 billion to $ 2.15 billion
           i)   Debt management improved by shifting 74% of domestic debt portfolio to long
          term resulting in reduction of domestic borrowing rates from 14% to 10%. It
          saved Rs. 240 billion
           j)   Due to the reforms introduced by the government, Extended Fund Facility of
         $ 6 billion was approved by IMF
       k)   In December 2019, Bloomberg has ranked Pakistan Stock Exchange as one
            of the top performing markets of the world
           l)   Moody’s ratings upgraded from B3-Negative to B3-Positive
     m)  Improvement in Pakistan’s “Ease of Doing Business” ranking
       n)   Significant progress on 27 actionable items included in the FATF action plan
Covid 19 has changed all: Adverse impacts
       Covid 19 has turned out to be a severe global economic threat, having the
potential of destabilizing the international economic system. Pakistan was no exception
as Corona  virus adversely impacted the economy  of the country. The immediate
economic repercussions of Covid 19 for Pakistan during FY 2019-20 are highlighted as
under;
     a)  The Industry and the  retail businesses  all over Pakistan have been badly
          affected
     b)  Economic growth has been reduced by Rs 03 trillion which brought down GDP
         growth projection from 3.3% to -0.4%

Page 9

     c)   Projection of over-all budget deficit has been revised upward from 7.1% to
       9.1% of GDP
     d)  FBR revenue loss has been projected at Rs 900 billion
     e)  Non tax revenue of the federal government has been reduced by Rs 102 billion
       f)   Exports and remittances have been badly affected
     g)  Unemployment and poverty have increased
     h)  Large scale manufacturing and FDI have declined
        i)   Domestic tourism in Pakistan has stalled
Government Response: Economic Relief Packages
      Government has stood up to the socio-economic challenge by reaching out to the
vulnerable segments of the society and business community to neutralize the negative
impact of lock down and unemployment. Government has approved a Stimulus Package
of more than Rs 1,200 billion. In addition Government has given relief to farmers and
daily wage earners. Incentives have been given to construction sector for stimulating the
economy. State Bank  of Pakistan has also introduced a number  of  initiatives  for
businesses to neutralize the negative impact of closures.
Budget Philosophy and Approach
    The next year budget is undoubtedly a crisis budget and its preparation requires
well thought out philosophy and approach. Following are the main features of the budget
2020-21 philosophy:
      a)    Striking a balance between corona expenditure and fiscal deficit
      b)   Keeping primary balance at sustainable level
      c)    Protection of social spending under the Ehsaas Program to support the
           vulnerable segments of the society
      d)   Resource mobilization without unnecessary changes in tax structure
      e)    Successful continuation of IMF program

Page 10

f)    Carrying forward of Stimulus Package
g)   Keeping development budget  at adequate  level  to  stimulate economic
      growth.
h)   Defence and internal security of the country has been given due importance.
i)    Housing  initiatives  including Naya Pakistan Housing  project have been
     funded
j)    Funding for special areas i.e erstwhile FATA, Azad Jammu and Kashmir,
       Gilgit Baltistan has also been ensured for their development
k)   The special initiatives led by the Prime Minister like Kamyab Jawan, Sehat
     Card, Billion tree Tsunami etc have also been protected.
l)    Austerity and rationalization of expenditures will be ensured.
m)   Subsidy regime  will be  rationalized  to provide targeted subsidy  to the
     deserving segments of the society.
n)  NFC award will be revisited. Moreover, the provinces will be asked to fulfill its
      funding commitment made at the time of merger of erstwhile FATA.

Page 11

                               Table - 1
                  BUDGET AT A GLANCE
               FOR THE FISCAL YEAR 2020-21

                                                                      (Rs. in Billion)
             RECEIPTS                     EXPENDITURE
TAX REVENUE                     5,464       A. CURRENT                 6,346
    -  FBR Taxes                    4,963        Interest Payments              2,946
    -   Other Taxes                  501       Pension                      470
- NON-TAX REVENUE             1,109      Defence Affairs & Services      1,289
                                              Grants and Transfers to
a) Gross Revenue Receipts          6,573                                   905
                                              Provinces & Others
b) Less Provincial Share             2,874       Subsidies                     209
I.  Net Revenue Receipts (a-b)        3,700      Running of Civil Govt.          477
                                                Provision for Contingencies
II. Non Bank Borrowing              1,395                                    50
                                  & Fund
III. Net External Receipts             810       B. DEVELOPMENT           792
IV. Estimated Provincial
                                  242        Federal PSDP                650
Surplus
                                             Net Lending (Investments &
V. Bank Borrowing (T-Bills,
                                  889       Loans to PSEs minus           72
PIBs, Sukuk)
                                                  recoveries)
                                              Other Dev. Expenditure
VI. Privatization Proceeds            100                                    70
                                              Outside PSDP

                                   TOTAL
TOTAL RESOURCES (I to VI)        7,137                                    7,137
                                      EXPENDITURE(A+B)

Page 12

                               Table - 2
      WORKING OF FEDERAL FISCAL DEFICIT AND FINANCING
                    BUDGET 2020-21
                                                                      (Rs. in Billion)
               Fiscal Deficit                          Financing

A) Federal Revenue (net)           3,700      A) Net External Financing      810

B) Total Federal                    7,137            Multilateral & Bilateral
   Expenditure (i+ii)                             Sources                   563
                                              Commercial Sources        248
i) Current Expenditure               6,346

ii) Development and Net             792
  Lending (a+b+c)                            B) Net Domestic Financing     2,527

a) Federal PSDP                  650           National Saving Schemes    227

b) Other Development               70          Government Securities       2,300
  Expenditure
                                         C) Privatization Proceeds     100
c) Net Lending                     72

C) Federal Deficit (A-B)             -3,437      Total Financing (A+B+C)       3,437

Page 13

                               Table - 3
                     Budget Estimates 2020-21
                                                                      (Rs. in Billion)
                              Budget        Revised           Budget
                                 2019-20        2019-20            2020-21

FBR Revenue                      5,555           3,908               4,963

Other Revenues                    1,162           1,596               1,610

Gross Revenue                     6,717           5,504               6,573

Less: Transfer to Provinces         -3,255           -2,402               -2,874

Net Revenue for Federal
                                 3,462           3,102               3,700
Government

Expenditure                        7,022           6,830               7,137

Federal Budget Deficit               -3,560           -3,728               -3,437

Provincial Surplus                423             -81               242

Overall Budget Deficit               -3,137           -3,809               -3,195

% GDP                           -7.1%          -9.1%              -7.0%

Primary Budget Deficit              -669            -1,099               -249

Memo: GDP                       44,003          41,727             45,567

Page 14

                     TABLE - 4
                    FBR Taxes

                                                         (Rs in Million)
                                                 Budget    Budget           Classification
                                                     2019-20    2020-21

A.  FBR TAXES (I + II)                                 5,555,000  4,963,000
  I.  Direct Taxes                                       2,081,945  2,043,000
        -  Income Tax                                   2,073,000  2,036,752
        -  Workers Welfare Fund                             5,050      3,207
        -  Capital Value Tax                                  3,895      3,041
  II.  Indirect Taxes                                     3,473,055  2,920,000
        -  Customs Duties                                1,000,500    640,000
        -  Sales Tax                                     2,107,738  1,919,000
        -  Federal Excise                                 364,817    361,000

                     TABLE - 5
                 Revenues other than FBR
                                                         (Rs in Million)
                                                 Budget    Budget           Classification
                                                     2019-20    2020-21

A. LEVIES & OTHER TAXES                            267,160    501,300
    - Petroleum Development Levy                         216,025    450,000
    - Mobile Handset Levy                                   3,000      5,800
    - Gas Infrastructure Development Cess                   30,000     15,000
    - Gas Development Surcharge                          10,000     10,000
    - Islamabad Capital Territory Taxes                        8,100     20,475
    - Airport Tax                                          35        25

B. NON-TAX REVENUE (i+ii+iii)                          894,464  1,108,926

   i  Income from Property and Enterprise                269,582    210,708

    - Pakistan Telecom Authority (Surplus)                     1,000      2,000
    - PTA (3/4G Licences)                                  52,730     27,000
    Regulatory     Authorities     (Surplus/
    -                                                       1,282       542
     penalities)
    - Mark up (Provinces)                                  24,112     26,843
    - Mark up (PSEs & Others)                            124,495     93,345
    - Dividends                                           65,963     60,978
                                                    Contd…

Page 15

                   Revenues other than FBR
                                                         (Rs in Million)
                                                 Budget    Budget           Classification
                                                     2019-20    2020-21
    Receipts from Civil Administration
  ii                                                    430,961    645,616
    and Other Functions
    - General Administration                                 4,284      3,440
    - SBP Profit                                         406,070    620,000
    - Defence Receipts                                    15,453     18,431
    - Law and Order Receipts                                2,034      1,198
    - Community Services                                    1,454      1,097
    - Social Services                                        1,666      1,450
  iii  Miscellaneous Receipts                            193,921    252,602
    - Economic Services                                     4,127      2,096
    - Foreign Grants                                       18,795     22,517
     Citizenship, Naturalization & Passport
    -                                                     25,000     25,000
    Fee
    - Discount Retained on Local Crude Price                 16,000     17,000
    - Royalty on Crude Oil                                  24,673     23,000
    - Royalty on Natural Gas                                51,560     53,812
    - Windfall Levy against Crude Oil                          7,000      8,000
    - Petroleum Levy on LPG                                4,000      5,516
    - Extraordinary Receipts (UNO)                          30,000     28,045
    - Extraordinary Receipts (Others)                          57        41
    - Others                                              12,711     67,575
C. TOTAL REVENUE OTHER THAN FBR (A+B)           1,161,624  1,610,226

                    TABLE - 6
         DETAILS OF TRANSFERS TO PROVINCES
                                                         (Rs in Million)
                                                 Budget    Budget           Classification
                                                     2019-20    2020-21

A. DIVISIBLE POOL TAXES                             3,153,770  2,817,212
    - Income Tax                                        1,176,770  1,156,193
    - Capital Value Tax                                      2,234      1,744
    - Sales Tax (Excl. GST on Services)                   1,206,911  1,098,916
    - Federal Excise (excl. Excise Duty on Natural Gas)           199,770    198,403
    - Customs Duties (excl. Export Development Surcharge)        568,086    361,957

                                                    Contd…

Page 16

         DETAILS OF TRANSFERS TO PROVINCES
                                                         (Rs in Million)
                                                 Budget    Budget           Classification
                                                     2019-20    2020-21
B. STRAIGHT TRANSFERS                             100,756    106,506
    - Gas Development Surcharge                            9,800     15,867
    - Royalty on Natural Gas                                50,627     52,736
    - Royalty on Crude Oil                                  24,179     23,199
    - Excise Duty on Natural Gas                            16,149     14,705
TOTAL (A to B):                                        3,254,526  2,923,718
    - Tax Refund                                                                        -     -50,000
LESS TAX REFUND                                                                  -  2,873,718
PROVINCE- WISE SHARE
    Punjab                                            1,611,364  1,439,116
    Sindh                                             814,916    742,030
    Khyber Pakhtunkhwa
                                                      533,261    477,519
      (Inclusive 1% War on Terror)
    Balochistan                                        294,983    265,054
    Tax Refund                                                                        -     -50,000

                     TABLE - 7
                   CAPITAL RECEIPTS
                                                         (Rs in Million)
                                                 Budget    Budget           Classification
                                                     2019-20    2020-21

TOTAL CAPITAL RECEIPTS (I + II)                      1,016,950  1,541,672
I.   Recoveries of Loans & Advances                   183,520    147,167
          - Provinces                                       79,371     89,025
          - Others                                        104,150     58,142
II.  Non Bank Borrowing (A + B)                        833,430  1,394,505
  A. Public Debt Net (1 + 2)                              582,677  1,178,886
     1. Permanent Debt                                  211,930    864,067
     2. Floating Debt                                    370,747    314,819
  B. Public Account                                     250,753    215,619
III. DISBURSEMENTS                                 185,291     78,493
NET CAPITAL RECEIPTS (I + II - III):                      831,659  1,463,179

Page 17

                     TABLE - 8
                EXTERNAL RESOURCES
                                                         (Rs in Million)
                                                 Budget    Budget           Classification
                                                     2019-20    2020-21
I.  EXTERNAL LOANS (A to C)                        2,990,579  2,157,500
 A. Project Loans (i+ii)                                 211,171    218,153
         i    Federal Government                           118,872     66,822
         ii   Provinces                                       92,299    151,331
 B. Programme Loans                                 276,958    503,567
 C. Other Aid                                         2,502,450  1,435,781
II.  EXTERNAL GRANTS                                27,950     20,667
D.  External Resources (I + II):                         3,018,529  2,178,168

E.  Project Loans & Grants Outside PSDP                13,796     44,751

GROSS EXTERNAL RESOURCES (D+E):                3,032,325  2,222,918
Foreign Loans and Repayment                         1,095,254  1,228,880
Repayment of Short Term Credits                       108,300    183,691
NET EXTERNAL RESOURCES:                         1,828,771    810,348

                     TABLE - 9
              CURRENT EXPENDITURE
                                                         (Rs in Million)
                                                 Budget    Budget           Classification
                                                     2019-20    2020-21
A. Current Expenditure
       (i)  Mark-up Payment                             2,891,449  2,946,135
            -   Mark-up on Domestic Debt                  2,531,685  2,631,000
            -   Mark-up on Foreign Debt                     359,764    315,135
       (ii)  Pension                                      421,000    470,000
            -    Military                                    327,088    359,000
            -    Civil                                        93,912    111,000
       (iii) Defence Affairs and Services                   1,152,535  1,289,134
      (iv) Grants and Transfers                         835,496   904,644
            -   Grants to Provinces                         96,482    85,000
            -   Grants to Others                          739,014   819,644
     (v)  Subsidies                                     271,500    209,000
      (vi) Pay and Pension Increase                        79,000         0
        Provision for Contingencies &
     Vii)                                               115,000     50,000
       Fund
      (viii
       Running of Civil Government                   431,246    476,589
      )
Total CURRENT EXPENDITURE (i to viii)                6,197,226  6,345,502
                                                   Contd…

Page 18

              EXPENDITURE OUTSIDE PSDP
                                                         (Rs in Million)
                                                          Budget
Classification
                                                                2020-21
B. Expenditure Outside PSDP
    1   Crop Loan Insurance Scheme                                  1,000
    2   Livestock Insurance Scheme                                 500
    3   Credit Guarantee Scheme for Small                            100
    4   Provision for Reconstruction of                                  2,000
    5  PFM and PfR                                                 4,000
    6   Low Cost Housing                                             1,000
    7   Pakistan Kamyab Jawan                                       2,000
    8   Prime Minister's Program (Old)                                 1,000
    9   Grant Relief & Rehibilitaions of                                17,000
    10  Security Enhancement & others                               33,000
    11  Gas Infrastructure Development                                 3,000
    12 PM New Initiative                                             1,000
    13  TDPs Emergency Recovery Project                             3,000
    14 SAP Upgradation                                             1,400
   TOTAL Expenditure Outside PSDP                               70,000
C. Net Lending                                                    72,000
Total Expenditure (A + B + C)                                      6,487,502

                     TABLE - 10
              FUNCTION-WISE EXPENDITURE
                                                         (Rs in Million)

                                                 Budget    Budget
         Classification
                                                     2019-20    2020-21

1)   General Public Service                             5,607,041  4,428,960
2)   Defence Affairs and Services                        1,152,535  1,289,134
3)   Public Order and Safety Affairs                       152,919    169,961
4)   Economic Affairs                                    84,167     71,751
5)   Environment Protection                               470       431
6)   Housing and Community Amenities                      2,292     35,680
7)   Health Affairs & Services                             11,058     25,494
8)   Recreation, Culture and Religion                        9,838      9,822
9)   Education Affairs and Services                        77,262     83,363
10)  Social Protection                                   190,595    230,907
   TOTAL:                                           7,288,179  6,345,502

Page 19

                       TABLE - 11
                         SUBSIDIES
                                                            (Rs in Million)

                                                   Budget    Budget            Classification
                                                        2019-20    2020-21

Power & Petroleum                                       250,500    149,500
Utility Stores Corporation                                     5,500      3,000
PASSCO including GB Wheat                                15,500     13,000
Others                                                                                         -     43,500
   Metro Bus                                                                                -      2,000
    Fertilizer Plant (Engro, Fatima)                                                     -      6,000
   Naya Pakistan Housing Authority                                                  -     30,000
   Other (Lump)                                                                            -      5,500
TOTAL                                                  271,500    209,000

                      TABLE - 12
               GRANTS AND TRANSFERS
                                                            (Rs in Million)

                                                   Budget    Budget
              Classification
                                                        2019-20    2020-21

  GRANTS IN AID & MISCELLANEOUS
I.                                                          96,482     85,000
  ADJUSTMENTS
        A.  SPECIAL GRANTS                              86,482     85,000
                   -  Punjab                                                                  -                -
                   -  Sindh                                       20,400     19,000
                   -  Khyber Pakhtunkhwa                         56,082     56,000
                   -  Balochistan                                  10,000     10,000
       B.  LUMP PROVISION                               10,000                -
II. GRANTS TO OTHERS                                  734,693    819,644
      -  Contingent and Misc.                                392,000    416,000
      -  Pakistan Railways                                    39,000     40,000
       -  Provision for Relief etc.                                 3,000      3,000
       -  Competition Commission of Pakistan                    210       250
       -  Reimbursement of TT Charges,                        15,000     22,477

                                                           Contd….

Page 20

            GRANTS AND TRANSFERS
                                                        (Rs in Million)

                                                Budget    Budget
         Classification
                                                    2019-20    2020-21

-  Pakistan Remittance Initiative                          100        23
-  Wallet Accounts                                       1,000       500
  Scheme For Marketing Home
-                                                        2,000      2,000
   Remittance
-  Audit Oversight Board                                 35        35

-  PPPA / VGF                                         75       100

-  Azad Jammu and Kashmir                             54,890     54,890
-   Gilgit Baltistan                                       33,000     32,000
-  Bait-ul-Maal                                           5,653      6,104

-  Pakistan Machine Tool Factory                                              -       500

-  BISP                                              180,000    200,000
- FMU                                                                                 -       300
-  DLTL                                                                                -     10,000
-   Artist and Retired Officer                                                      -      3,000
-  Technology Upgradation Fund                                               -       400
-  Pakistan innovation Fund                                                      -       100
-  PPAF                                                 2,150      2,000
- ECP (LG Election)                                                               -      2,500
- NDMA                                                                              -      5,000
-  Medical Equipments                                                            -      5,000
-  Relief to SME & Agriculture (Locust)                                       -     10,000
-  Others                                                6,580      3,465

  TOTAL GRANTS (I + II):                             831,175    904,644

Page 21

                    TABLE - 13
              CURRENT INVESTMENTS
                                                        (Rs in Million)

                                                Budget    Budget          Classification
                                                    2019-20    2020-21

   GoP Contribution in Equity of Pak China
1                                                   500       200
    Investment Co. Ltd. Islamabad
   GoP  Equity  injuction  in  Sarmaya-e-
2                                                   200       200
    Pakistan Ltd
   Paid up Capital for the proposed Exim
3                                                  2000      1,000
   Bank of Pakistan
    4th General Increase of Capital Stock
4                                                        1,264      1,263
    Islamic Develoment Bank (IDB)
    Pakistan    Mortgaauge    Refinance
5                                                        5,000      1,550
   Company Ltd. PMRCL
   GoP Equity in DISCOs through PHPL for
6                                                        6,000      6,000
   payment of DSL of STFF
    Pakistan's Annual Contribution to Inter
7                                                      4         4
   Governmental Group IF 24 (G-24)
    International Financial Institutions GOP
8  contribution   in  equity   of  Pak-Libya                 500       300
    Holding Company Limited
  MCR  DOE   Postal   Life   Insurance
9                                                                                          -      1,000
   Company

10 Equity For Post Payment Compnay                                        -       200

   TOTAL:                                             15,468     11,717

                    TABLE - 14
                 DISTRIBUTION OF PSDP
                                                        (Rs in Million)
                                                Budget    Budget        Classification
                                                    2019-20    2020-21

1  Aviation Division                                       1,267      1,321
2  Board of Investment                                  100        80
3  Cabinet Division                                      15,986     47,802
4  Climate Change Division                                7,579      5,000
                                                      Contd…

Page 22

                 DISTRIBUTION OF PSDP
                                                        (Rs in Million)
                                                Budget    Budget        Classification
                                                    2019-20    2020-21
5  Commerce Division                                  100       104
   Communications Division (other than
6                                                    248       255
   NHA)
7  Defence Division                                    456       660
8  Defence Production Division                             1,700      1,579
9  Establishment Division                                333       283
    Federal   Education  &   Professional
10                                                       4,797      4,526
    Division
11 Finance Division                                     36,822     18,667
12 Foreign Affairs Division                                30        10
13 Higher Education Commission                         29,047     29,470
14 Housing & Works Division                               2,930      8,737
15 Human Rights Division                                143       256
16 Industries and Production Division                        2,343       800
    Information & Broadcasting & National
17                                                   516       361
    Heritage Division
18 Information Tech. & Telecom Division                     7,342      6,673
19  Inter Provincial Coordination Division                     340       929
20  Interior Division                                        9,848     14,758
21 AJK                                                26,894     27,425
22  Gilgit Baltistan                                       17,805     25,000
23 Merged Districts KPK (Ex FATA)                                            -     48,000
24 Law and Justice Division                                1,340       991
25 Maritime Affairs Division                                3,600      2,683
26 Narcotics Control Division                             135        54
    National  Food  Security &  Research
27                                                     12,048     12,000
    Division
                                                      Contd…

Page 23

                    DISTRIBUTION OF PSDP
                                                            (Rs in Million)
                                                   Budget    Budget            Classification
                                                        2019-20    2020-21
        National Health Services, Regulations &
   28                                                     13,377     14,508
        Coordination Division
        National  History &  Literary  Heritage
   29                                                   128       195
        Division
   30 Pakistan Atomic Energy Commission                    24,457     23,297
   31 Pakistan Nuclear Regulatory Authority                   301       350
   32 M/o. Energy (Petroleum Division)                        582      1,786
        Planning,   Development  &  Reform
   33                                                       7,964      3,545
        Division
        Poverty Alleviation and Social Safety
   34                                                   200       135
        Divivion
   35 Railways Division                                    16,000     24,000
   36 Religious Affairs & Interfaith Harmony                   1000        54
   37 Revenue Division                                      1,818      1,697
       Science  &  Technological  Research
   38                                                       7,407      4,458
        Division
   39 SUPARCO                                            6,033      4,975
   40 Water Resources Division                             85,021     81,250
   41 National Highway Authority (NHA)                     155,967    118,675
   42 NTDC/PEPCO/WAPDA                               41,792     39,650
   43 ERRA                                                5,000      3,000
      COVID Responsive and Other Natural
   44                                                                                         -     70,000
        Calamities Program
   45 Others                                            150,204                -
    (A) Total Federal PSDP (1 to 45)                         701,000    650,000
    (B) Provinces                                         912,000    674,000
TOTAL NATIONAL PSDP (A + B)                           1,613,000  1,324,000

Page 24

            PART-II

DETAILED BUDGET ESTIMATES

Page 25

                      TABLE - 1
                    FBR TAXES
                                                           (Rs in Million)
                                        Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21

FBR TAXES (I + II)                           5,555,000   3,908,000   4,963,000
  I.  Direct Taxes                            2,081,945   1,623,000   2,043,000
         -  Income Tax                        2,073,000   1,618,037   2,036,752
         -  Workers Welfare Fund                   5,050       2,548       3,207
         -  Capital Value Tax                       3,895       2,415       3,041
  II.  Indirect Taxes                          3,473,055   2,285,000   2,920,000
         -  Customs Duties                     1,000,500    546,000    640,000
         -  Sales Tax                          2,107,738   1,427,000   1,919,000
         -  Federal Excise                       364,817    312,000    361,000
                      TABLE - 2
              REVENUES OTHER THAN FBR
                                                           (Rs in Million)
                                        Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21

A.  LEVIES & OTHER TAXES                 267,160    300,459    501,300
         -  Other Taxes (ICT)                       8,100      15,442      20,475
         -  Mobile Hand Set Levy                   3,000       4,000       5,800
         -   Airport Tax                             35         17         25
         -  Gas   Infrastructure  Development
                                              30,000      11,000      15,000
       Cess (GIDC)
         -  Natural    Gas     Development
                                              10,000      10,000      10,000
        Surcharge
         -  Petroleum Levy                      216,025    260,000    450,000

Page 26

              REVENUES OTHER THAN FBR

                                                           (Rs in Million)

                                        Budget    Revised    Budget
           Classification                                           2019-20    2019-20    2020-21

B.   NON-TAX REVENUE (I + II + III))         894,464   1,296,030   1,108,926

   I  Income from Property and Enterprise      269,582    243,187    210,708

    - Pakistan Telecom Authority (Surplus)          1,000       6,449       2,000
    - PTA (3 G Licences)                        52,730    125,000      27,000
    - Regulatory     Authorities     (Surplus/
     penalities)                                  1,282        540        542
    - Mark up (Provinces)                        24,112      26,111      26,843
    - Mark up (PSEs & Others)                  124,495      36,917      93,345
    - Dividends                                 65,963      48,171      60,978

  II  Receipts from Civil Administration
    and Other Functions                     430,961    809,666    645,616
    - General Administration                       4,284       3,408       3,440
    - SBP Profit                               406,070    785,000    620,000
    - Defence                                  15,453      17,553      18,431
    - Law and Order                              2,034       1,137       1,198
    - Community Services                         1,454       1,039       1,097
    - Social Services                              1,666       1,528       1,450

  III  Miscellaneous Receipts                  193,921    243,177    252,602
    - Economic Services                          4,127       1,254       2,096
    - Foreign Grants                            18,795      27,463      22,517
    - Citizenship, Naturalization & Passport
    Fee                                      25,000      25,000      25,000
    - Discount Retained on Local Crude Price      16,000      16,000      17,000
    - Royalty on Crude Oil                       24,673      25,000      23,000
    - Royalty on Natural Gas                     51,560      54,050      53,812
    - Windfall Levy against Crude Oil               7,000       7,000       8,000
    - Petroleum Levy on LPG                     4,000       3,635       5,516
    - Extraordinary Receipts (UNO)               30,000      27,441      28,045
    - Extraordinary Receipts (Others)                57         30         41
    - Others                                   12,711      56,304      67,575

    Total (A +B)                            1,161,624   1,596,488   1,610,226

Page 27

     Distribution of Resources Among Federation and Provinces

1.         Pakistan is a Federal democracy. In order to maintain inter-governmental
fiscal relationship, Article 160 of the Constitution provides for setting up of a National
Finance Commission (NFC) with intervals not exceeding five years. The mandate of
NFC is to make recommendations to the President for the distribution of resources
between the Federal and Provincial Governments. The recommendations of the NFC
are given  legal cover through a  Presiden's Order. The  relevant  provisions  of
President's Order No. 5 of 2010 as amended vide No. 6 of 2015 are as under:
(i)      Distribution of Revenues.-(1) The divisible pool taxes in each year shall
consist of the following taxes levied and collected by the Federal Government in that
year, namely:─
     (a)      taxes on income;
     (b)      wealth tax;
     (c)       capital value tax;
     (d)      taxes on  the  sales and purchases  of goods  imported,  exported,
             produced, manufactured or consumed;
     (e)      export duties on cotton;
       (f)      customs duties;
     (g)       federal excise duties excluding  the excise duty on gas charged at
              well-head; and
     (h)     any other tax which may be levied by the Federal Government.
(2)     One percent of the net proceeds of divisible pool taxes shall be assigned to
Government of Khyber Pakhtunkhwa to meet the expenses on war on terror.
(3)       After deducting the amounts as prescribed in clause (2), of the balance
amount of the net proceeds of divisible pool taxes, fifty-six percent shall be assigned
to provinces during the financial year 2010-11 and fifty-seven and half percent from
the financial year 2011-12 onwards. The share of the Federal Government in the net
proceeds of divisible pool shall be forty-four percent during the financial year 2010-11
and forty-two and half percent from the financial year 2011-12 onwards.
(ii)      Allocation of shares to the Provincial Governments.-(1) The Province -
wise ratios given in clause (2) are based on multiple indicators. The indicators and
their respective weights as agreed upon are:-
     (a)        Population                               82.0%
     (b)        Poverty or backwardness                   10.3%
     (c)       Revenue collection or generation              5.0%
     (d)        Inverse population density                    2.7%
     (2)   The sum assigned to the Provincial Governments under Article 3 shall be
distributed amongst the Provinces on the basis of the percentage specified against
each:─

Page 28

     (a)       Balochistan                               9.09%
     (b)       Khyber Pakhtunkhwa                      14.62%
     (c)       Punjab                                 51.74%
     (d)       Sindh                                  24.55%
                                          Total:            100.00%

     (3)   The Federal Government shall guarantee that Balochistan province shall
receive the projected sum of eighty-three billion rupees from the provincial share in
the net proceeds of divisible pool taxes in the first year of the Award. Any shortfall in
this amount shall be made up by the Federal Government from its own resources.
This arrangement for Balochistan shall remain protected throughout the remaining
four years of the Award based on annual budgetary projections.

(iii)     Payment of net proceeds of royalty on crude oil.─Each of the provinces
shall be paid in each financial year as a share in the net proceeds of the total royalties
on crude oil an amount which bears to the total net proceeds the same proportion as
the production of crude oil in the Province in that year bears to the total production of
crude oil.

(iv)     Payment of net proceeds of development surcharge on natural gas to
the Provinces.─(1) Each of the Provinces shall be paid in each financial year as a
share in the net proceeds to be worked out based on average rate per MMBTU of the
respective province. The average rate per MMBTU shall be derived by notionally
clubbing both the royalty on natural gas and development surcharge on Gas. Royalty
on natural gas shall be distributed in accordance with clause (1) of Article 161 of the
Constitution whereas the development surcharge on natural gas would be distributed
by making adjustments based on this average rate.

    (2)   The development surcharge on natural gas for Balochistan with effect from
1st July 2002, shall be re-worked out hypothetically on the basis of the formula given
in clause (1) and the amount, subject to maximum of ten billion rupees, shall be paid
in five years in five equal installments by the Federal Government as grants to be
charged on the Federal Consolidated Fund.

(v)      Grants-in-Aid to the Provinces.-There shall be charged upon the Federal
Consolidated Fund each year, as grants-in-aid of the revenues of the province of
Sindh an amount equivalent to 0.66% of the provincial share in the net proceeds of
divisible pool as a compensation for the losses on account of abolition of octroi and
zilla tax.

(vi)      Sales tax on services.-NFC recognizes that sales tax on services is a
Provincial subject under the Constitution of the Islamic Republic of Pakistan, and may
be collected by respective Provinces, if they so desired.

(vii)       Recently, the President has consituted 10th NFC Award for consideration
on distribution of resources afresh.

Page 29

(viii)        Detail of Provincial share of Federal Taxes for budget estimates and
revised estimated of 2019-20 and bdget estimates of 2020-21are given in table 3
below:-
                     TABLE - 3
     DETAILS OF PROVINCIAL SHARE IN FEDERAL TAXES
                                                           (Rs in Million)
                                        Budget    Revised    Budget
           Classification                                           2019-20    2019-20    2020-21

A. DIVISIBLE POOL TAXES                  3,153,770   2,300,482   2,817,212
    - Income Tax                             1,176,770    941,574   1,156,193
    - Capital Value Tax                           2,234       1,461       1,744
    - Sales Tax (Excl. GST on Services)         1,206,911    851,912   1,098,916
    - Federal Excise
                                            199,770    174,001    198,403      (excl. Excise Duty on Natural Gas)
    - Customs Duties
                                            568,086    331,534    361,957      (excl. Export Development Surcharge)
B. STRAIGHT TRANSFERS                   100,756    101,598    106,506
    - Gas Development Surcharge                 9,800      9,799      15,867
    - Royalty on Natural Gas                     50,627     53,949      52,736
    - Royalty on Crude Oil                       24,179     25,126      23,199
    - Excise Duty on Natural Gas                 16,149     12,724      14,705
C.  Less
    Tax Refund                                 0          0      50,000
TOTAL (A + B- C):                           3,254,526   2,402,080   2,873,719
PROVINCE- WISE SHARE
    Punjab                                 1,611,364   1,135,447   1,439,116
    Sindh                                   814,916    592,321    742,030
    Khyber Pakhtunkhwa
                                            533,261    379,097    477,519      (Inclusive 1% War on Terror)
     Balochistan                              294,983    295,214    265,054
    Tax Refund                                 0          0     -50,000
TOTAL PROVINCIAL SHARE:                3,254,526   2,402,080   2,873,719

Page 30

                      TABLE - 4

                    CAPITAL RECEIPTS
                                                           (Rs in Million)

                                        Budget    Revised    Budget
           Classification                                           2019-20    2019-20    2020-21

TOTAL CAPITAL RECEIPTS (I + II)            1,016,950   1,176,853   1,541,672
I.   Recoveries of Loans & Advances         183,520    131,713    147,167
           - Provinces                             79,371      84,666      89,025
           - Others                              104,150      47,047      58,142
II.  CAPITAL RECEIPTS (A + B)              833,430   1,045,140   1,394,505
  A. Public Debt Net (1 + 2)                   582,677    623,865   1,178,886
     1. Permanent Debt                       211,930    650,657    864,067
           - Pakistan Investment Bonds            200,000    410,137     400,000
           - Ijara Sukuk Bonds                       8,993    228,993     450,000
           - Foreign Exchange Bearer
          Certificates (FEBCs)                             (5)            (1)            (5)
           - Foreign Currency Bearer
          Certificates (FCBCs)                             (5)            (1)            (5)
           - U.S. Dollar Bearer Certificates                  (3)             -               (3)
           - Special US Dollar Bonds                     (50)         (40)         (50)
           - Premium Prize Bonds (Regd.)            3,000      15,390      15,000
           - Pakistan Bano Certificate (3 Years)          0        (170)        (199)
           - Pakistan Bano Certificate (5 Years)          0        (220)        (528)
           - FADRA                                 0      (3,432)        (143)
     2. Floating Debt                         370,747     -26,792    314,819
           - Prize Bonds                           70,747   (181,967)     (85,181)
           - Treasury Bills Auction                 300,000    155,175    400,000
 B. Public Account                          250,753    421,275    215,619
           - National Savings Schemes            275,628    426,842    223,279
           - G.P. Fund                              3,000       3,500       4,000
           - Net Deposits                           (27,875)      (9,067)     (11,660)
III.  DISBURSEMENTS                       185,291    210,145      78,493
           - Government Investments, Loans,
        Advances and Others                  76,991      72,922      78,493
           - Repayment of Short Term Credits       108,300    137,222          0
NET CAPITAL RECEIPTS (I + II - III):           831,659    966,708   1,463,179

Page 31

                      TABLE - 5
                EXTERNAL RESOURCES
                                                           (Rs in Million)

                                        Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21

I.  EXTERNAL LOANS (A to C)              2,990,579   2,181,202   2,157,500
 A. Project Loans (i+ii)                      211,171    214,744    218,153
        i   Federal Government                118,872    143,136      66,822
           - Ministries/Divisions                    16,118      17,912      13,274
           - Corporations/Autonomous Bodies       102,754    125,224      53,548
        ii   Provinces                           92,299      71,608    151,331

 B. Programme Loans                       276,958    620,240    503,567
 C. Other Aid                               2,502,450   1,346,219   1,435,781
          - Islamic Development Bank             165,000    127,117    165,000
          - Saudi Arabia (Saudi Oil)               480,000    138,840    165,000
          - Euro Bond/International Sukuk         450,000          0    247,500
          - Commercial Banks                   300,000    623,610    647,213
          - Budgetary Support from Friendly
                                            750,000          0          0
         Countries
          - IMF Loan for Budgetary Support        357,450    456,652    211,068
II.  GRANTS                                 27,950      32,490      20,667
    - Project Aid Grants                         27,950      32,490      20,667
          • Federal Departments                    6,130       7,254       4,811
          • Autonomous Bodies                     1,677       6,120        842
          • Provinces                             20,143      19,116      15,014

D.  External Resources (I + II):              3,018,529   2,213,692   2,178,168

E.    Project Loans & Grants Outside PSDP
                                             13,796      59,228      44,751
        Loans                                13,250      52,296      42,411
         Grants                               546       6,932       2,340

TOTAL EXTERNAL RESOURCES (D+E):      3,032,325   2,272,920   2,222,919

Foreign Loans and Repayment                    0          0   1,228,880

Repayment of Short Term Credits                  0          0    183,691

EXTERNAL RESOURCES (Net):              3,032,325   2,272,920    810,348

Page 32

                      TABLE - 6
               CURRENT EXPENDITURE
                                                           (Rs in Million)
                                        Budget    Revised    Budget
           Classification                                           2019-20    2019-20    2020-21
(i)      Mark-up Payment                   2,891,449   2,709,351   2,946,135
            -   Mark-up on Domestic Debt       2,531,685   2,374,000   2,631,000
            -   Mark-up on Foreign Debt          359,764    335,351    315,135
(ii)     Pension                            421,000    463,419    470,000
            -    Military                          327,088    354,939    359,000
            -     Civil                             93,912    108,480    111,000
(iii)     Defence Affairs and Services        1,152,535   1,227,388   1,289,134
            -   Defence Services                1,149,665   1,224,522   1,286,192
            -   Defence Administration              2,870       2,866       2,943
(iv)     Grants and Transfers                831,175    896,981    904,644
            -   Grants to Provinces                96,482      83,619      85,000
            -   Grants to Others                 734,693    813,362    819,644
(v)      Subsidies                          271,500    349,500    209,000
(vi)     Pay and Pension                      79,000                 -          0
vii)      Provision for Contingencies          115,000                 -      50,000
(viii)    Running of Civil Government         431,246    483,773    476,589
   CURRENT EXPENDITURE (i to viii)       6,192,924   6,130,413   6,345,502
(ix)     Foreign Loans Repayment          1,095,254   1,245,344          0
   TOTAL CURRENT EXPENDITURE        7,288,179   7,375,757   6,345,502
       (I to ix)

Page 33

                      TABLE - 7

          FUNCTION WISE CURRENT EXPENDITURE

2.      Current expenditure is divided into ten (10) functional items as per Charts of
Accounts. Detail is as under :-

                                                           (Rs in Million)

                                        Budget    Revised    Budget
         Classification
                                           2019-20    2019-20    2020-21

1)   General Public Service                   5,607,041   5,538,073   4,428,960
2)   Defence Affairs and Services             1,152,535   1,227,388   1,289,134
3)   Public Order and Safety Affairs             152,919    153,269    169,961
4)   Economic Affairs                          84,167    106,411      71,751
5)   Environment Protection                     470        470        431
6)   Housing and Community Amenities           2,292       2,545      35,680
7)   Health Affairs & Services                   11,058      12,023      25,494
8)   Recreation, Culture and Religion              9,838       9,301       9,822
9)   Education Affairs and Services              77,262      81,253      83,363
10)  Social Protection                         190,595    245,024    230,907

    TOTAL:                                7,288,179   7,375,757   6,345,502

                      TABLE - 8

              GENERAL PUBLIC SERVICE

3.      Expenditure under above mentioned ten functions detail is as under :-

                                                           (Rs in Million)

                                        Budget    Revised    Budget
           Classification                                           2019-20    2019-20    2020-21

GENERAL PUBLIC SERVICE                 5,607,041   5,538,073   4,428,960
Executive & Legislative Organs, Financial,
Fiscal Affairs & External Affairs                4,716,758   4,839,651   3,664,058
  - Superannuation Allowances & Pensions       421,000    463,419    470,000
  - Servicing of Foreign Debt                    359,764    335,351    315,135
  - Foreign Loans Repayment                  1,095,254   1,245,344          0
  - Servicing of Domestic Debt                 2,531,685   2,374,000   2,631,000
  - Others                                    309,055    421,537    247,923
Foreign Economic Aid                            6,422       6,418       2,387
Transfers                                    643,391    646,720    687,355
General Services                                9,805       9,311      10,623
Basic Research                                 4,992       4,992       5,952
Research and Development General Public
Services                                      14,417      14,562      15,108
Administration of General Public Services           6,846       8,539       3,149
General  Public  Services  not  elsewhere
defined                                     204,410       7,881      40,329

Page 34

                      TABLE - 9
            DEFENCE AFFAIRS AND SERVICES

                                                           (Rs in Million)
                                        Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21

DEFENCE AFFAIRS AND SERVICES          1,152,535   1,227,388   1,289,134
  -  Defence Administration                     2,870       2,866       2,943
  -  Defence Services                       1,149,665   1,224,522   1,286,192
  -  Employees Related Expenses              450,413    455,860    475,657
  -  Operating Expenses                      264,656    318,114    301,109
  -  Physical Assets                          315,375    317,118    357,756
  -   Civil Works                              123,252    135,715    155,478
  -  Less Recoveries                              (4,031)      (2,285)      (3,808)

                      TABLE - 10
            PUBLIC ORDER AND SAFETY AFFAIRS

                                                           (Rs in Million)
                                       Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21

PUBLIC ORDER AND SAFETY AFFAIRS       152,919    153,269    169,961
  -  Law Courts                                 6,012       5,992       6,937
  -  Police                                  142,837    143,207    158,621
  -  Fire Protection                             274        274        303
  -  Prison Administration and Operation            43         43         47
  - R & D Public Order and Safety                 47         47         50
  -  Administration of Public Order                 3,706       3,705       4,003

Page 35

                      TABLE - 11
                 ECONOMIC AFFAIRS
                                                           (Rs in Million)
                                       Budget    Revised    Budget
           Classification                                           2019-20    2019-20    2020-21

ECONOMIC AFFAIRS                        84,167    106,411      71,751
  -  General  Economic,  Commercial  and
    Labour Affairs                             32,580      53,301      14,108
  -  Agriculture, Food, Irrigation, Forestry
    and Fishing                                 4,917       4,916      13,696
  -  Fuel and Energy                           24,718      23,299      10,762
  -  Mining and Manufacturing                    1,811       2,310       1,968
  -  Construction and Transport                  14,753      14,752      15,638
  -  Communications                            3,714       4,182       3,779
  -  Other Industries                             1,674       3,651      11,800

                      TABLE - 12
              ENVIRONMENT PROTECTION

                                                           (Rs in Million)
                                       Budget    Revised    Budget
           Classification                                           2019-20    2019-20    2020-21

ENVIRONMENT PROTECTION                 470        470        431
    Waste Water Management                   470        470        431

                      TABLE - 13
           HOUSING AND COMMUNITY AMENITIES
                                                           (Rs in Million)
                                       Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21

HOUSING AND COMMUNITY AMENITIES           2,292       2,545      35,680
    Housing Development                         0        252      31,000
    Community Development                     2,292       2,292       4,680

Page 36

                      TABLE - 14
             HEALTH AFFAIRS AND SERVICES

                                                           (Rs in Million)
                                       Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21

HEALTH AFFAIRS AND SERVICES            11,058      12,023      25,494
  -  Medical   Products,   Appliances  and
    Equipment                                 31         31         31
  -  Hospital Services                            8,702       9,762      22,774
  -  Public Health Services                      463        463        504
  -  Health Administration                        1,862       1,767       2,184

                      TABLE - 15
           RECREATION, CULTURE AND RELIGION

                                                           (Rs in Million)
                                       Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21

RECREATION, CULTURE AND RELIGION         9,838       9,301       9,822

  -  Recreation and Sporting Services                 0.4          0.4          0.4
  -  Cultural Services                           717        646        747
  -  Broadcasting and Publishing                  7,631       7,176       7,500
  -  Religious Affairs                             1,050       1,039       1,122
  -  Administration of Information, Recreation
   & Culture                                 439        440        453

Page 37

                      TABLE - 16
            EDUCATION AFFAIRS AND SERVICES

                                                           (Rs in Million)
                                        Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21

EDUCATION AFFAIRS AND SERVICES          77,262      81,253      83,363
  -  Pre-Primary & Primary Education Affairs
    Services                                    2,831       2,781       2,931
  -  Secondary Education Affairs & Services         6,718       6,726       7,344
  -   Tertiary Education Affairs and Services         65,233      70,037      70,741
  -  Subsidiary Services to Education              310        393        312
  -  Administration                              1,407        727       1,237
  -  Education     Affairs,    Services    not
    elsewhere classified                        763        589        798

                      TABLE - 17
                  SOCIAL PROTECTION

                                                           (Rs in Million)
                                        Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21

SOCIAL PROTECTION                       190,595    245,024    230,907

-    Administration                              1,827       1,827      21,763

-    Others                                   864        894        886

-    Social Protection (not elsewhere class)      187,904    242,303    208,258

Page 38

4.       In addition to the above allocations under the Current Budget as per ten
classification heads, the Federal Govts provides funds for various purpose as under:-

5.       In order to alleviate the impact of  inflation on citizens, especially the poor
segments of society, the Federal Government spends a fairly large sum on providing
power and food subsidies.
                        TABLE - 18
                          SUBSIDIES
                                                              (Rs in Million)
                                           Budget    Revised    Budget
            Classification                                              2019-20    2019-20    2020-21

Subsidy to WAPDA/PEPCO:                     201,000    211,000    129,000
1  Inter-Disco Tariff Differential                    162,000    162,000    110,000
2  To pick up WAPDA/PEPCO receivables from
   merged districts of KPK                         18,000      18,000      10,000
3  To KESC for industrial support package           10,000      10,000       5,000
4   Tariff Differential for Agriculture Tubewells in
   Balochistan                                     8,000       8,000       3,000
5 WAPDA on account of Tariff Differential for
   AJ&K                                          3,000       3,000       1,000
6   Bill Deferment ( Corona)                           0      10,000          0
Subsidy to Petroleum:                            24,000      47,000      10,000
7  Subsidy to LNG sector for providing Gas on
   lower rates to industry                          24,000      24,000      10,000
8  PSO, APL and Others                             0      23,000          0
Subsidy to KESC:                                25,500      25,500      10,500
9  To pick up KESC's Tariff Differential              25,000      25,000      10,000
10 For    Tariff    Differential    for   Agriculture
   Tubewells in Balochistan                        500        500        500
                                                             Contd…..

Page 39

                          SUBSIDIES
                                                              (Rs in Million)
                                           Budget    Revised    Budget
            Classification
                                              2019-20    2019-20    2020-21
PASSCO for:                                     15,500      15,500       7,000
11 Subsidy to PASSCO on Account of Wheat
   Operation                                       2,000       2,000       2,000
   Subsidy to PASSCO Wheat supplied to Gilgit-
12                                                 8,000       8,000          0
    Baltistan (Arrears)
13 Wheat Donation                               500        500          0
14 Wheat Reserved Stock                          5,000       5,000       5,000
Utility Store Corporation                            5,500      43,500       3,000
15 Ramzan Package                               2,500       2,500       3,000
16 Payment of Sugar Arrears                        3,000       1,000          0
17 Sale of Essentials                                                      -      30,000                 -
18 Subsidy to USC (Corona Stimulus Package)                   -                                   -                                                            10,000
Others:                                           0       7,000      49,500
19 Wheat Subsidy to GB                             0          0       6,000
20 Metro Bus Subsidy                               0          0       2,000
21 Fertilizer Plant Subsidy (Engro, Fatima)               0       7,000       6,000
22 Lump Provision for Subsidy                                         -          0       5,500
23
   Subsiday to Naya Pakistan Housing Authority                 -          0      30,000
   TOTAL SUBSIDIES:                         271,500    349,500    209,000

Page 40

6.      Grants and Transfer to provinces and other entities are provided by the
Federal Government. The detail is as under :-
                      TABLE - 19
               GRANTS AND TRANSFERS
                                                           (Rs in Million)
                                        Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21

I.  GRANTS IN AID & MISCELLANEOUS       96,482      83,619      85,000
   ADJUSTMENTS
    A.  SPECIAL GRANTS                    86,482      83,619      85,000
               -  Punjab                                                  -          0                 -
               -  Sindh                            20,400      16,700      19,000
               -  Khyber Pakhtunkhwa               56,082      56,082      56,000
               -  Balochistan                       10,000      10,837      10,000
    B.  LUMP PROVISION                    10,000                 -          0
II.  GRANTS TO OTHERS                    734,693    813,362    819,644
  -  Contingent Liabilities                      308,000    302,534    323,000
  -  Miscellaneous Grants                      84,000      89,466      93,000
  -  Pakistan Railways to meet their losses        39,000      45,000      40,000
  -  National Internship Programme                54         54         54
  -  Lump Provision for Relief etc.                 3,000       8,000       3,000
  -  Competition Commission of Pakistan           210        610        250
  -
    Reimbursement of Telegraphic Transfers
                                             15,000      22,005      22,477
     (TT) Charges on Home Remittances
  -  Pakistan Remittance Initiative                 100         23         23
  -  Audit Oversight Board                        35         35         35

                                                         Contd…..

Page 41

             GRANTS AND TRANSFERS

                                                          (Rs in Million)
                                       Budget    Revised    Budget
         Classification
                                          2019-20    2019-20    2020-21

-  FWBL's Key Initiatives/Development           500        157          0
-  Public Private Partnership Authority-
                                            75                 -          0
  PPPA
-  Wallet Accounts                             1,000                 -        500
-  Remmitances                               2,000       1,221       2,000
-  Grants to AJK Government                  54,890      54,890      54,890
-  Grant-in-Aid to Gilgit Baltistan               33,000      34,000      32,000
-  Grant to Bait-ul-Maal                         5,653       5,653       6,105
-  Wheat Subsidy to Gilgit Baltistan              6,045       5,261          0
   Benazir Income Support Programme        180,000    242,303    200,000
   Pakistan Poverty Alleviation Fund             2,150       2,150       2,000
   Medical Equipment, Agriculture (Locust),
                                             0          0      20,000
  NDMA

  ECP, Artist Fund, Machine Tools Factory          0          0       6,000
   Pakistan Banao Certificate                     0          0        112
   Standard Chartered Bank                      0          0         14
  DLTL (Draw Back of Taxes)                    0          0      10,000
   Others                                     0          0       4,209
  TOTAL GRANTS (I + II):                  831,175    896,981    904,644

Page 42

                      TABLE - 20
            CURRENT LOANS & ADVANCES
                                                           (Rs in Million)
                                        Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21
1  Ways & Means Advances to the Govt. of
   AJK for repayment of principal & interest      17,080      17,080      15,000
2   Junagadh and Kathiawar Chiefs                21         21         21
3   Loans/Advances to Employees of PNRA         15         15         15
4   Loans/Advances to Friendly Countries          500        500        200
5    Gilgit-Baltistan    for   Repayment    of
     Principal and Interest                                           -         18         10
6    Interest  free  Loans  to WAPDA  For
    Operation and Maintenance, Hub Dam &         40                 -         20
    Khanpur Dam
7   Loan to State Engineering Corporation           20         20         25
8   Current Loans to PIA                       24,525      27,168      20,000
9   Loans and Advances to Governments
    Servants                                  14,522      14,514      15,485
10  Loans to Pakistan Steel Mills Karachi          4,800       6,100      16,000
11  Loan to Pakistan Machine Tool Factory                   -       416                  -
12  PICAL Indigenous Development of IFE                    -       600                  -
    TOTAL:                                  61,523      66,452      66,776

                      TABLE - 21
         DEVELOPMENT LOANS AND ADVANCES

                                                           (Rs in Million)
                                        Budget    Revised    Budget
           Classification
                                           2019-20    2019-20    2020-21

 1  Development Loans and Advances          136,113    124,640    140,288
 2  External Development Loans and
    Advances                               270,335    197,051    286,728

    TOTAL:                                 406,448    321,691    427,016

Page 43

                     TABLE - 22
               CURRENT INVESTMENTS
                                                          (Rs in Million)
                                       Budget    Revised    Budget
          Classification
                                          2019-20    2019-20    2020-21
 1 GoP Contribution in Equity of Pak China
    Investment Co. Ltd. Islamabad                500          0        200
 2 GoP  Equity  injuction   in  Sarmaya-e-
    Pakistan Ltd                              200          0        200
 3  Fifth General Capital Increase of Aisian
   Development Bank                               0.1                 -          0
 4  Paid up Capital for the proposed Exim
   Bank of Pakistan                            2,000                 -       1,000
 5  4th General Increase of Capital Stock
    Islamic Develoment Bank (IDB)               1,264       1,324       1,263
 6  Pakistan     Mortguage     Refinance
   Company Ltd. PMRCL                       5,000       4,642       1,550
 7 GoP Equity in DISCOs through PHPL for
   payment of DSL of STFF                     6,000          0       6,000
 8  Pakistan's Annual Contribution to Inter
   Governmental Group IF 24 (G-24)               4          4          4
 9  International Financial Institutions GOP
    contribution   in  equity   of  Pak-Libya
    Holding Company Limited                    500        500        300
10 MCR  DOE   Potal   Life   Insurance
   Compnay                                                           -                 -       1,000
11 Equity For Post Payment Company                         -                 -        200
   TOTAL:                                  15,468       6,470      11,717

Page 44

                           SIZE OF PSDP

    7.     The Public Sector Development Programme (PSDP) is the main instrument
    for improving  the socio-economic  conditions  in the  country and  achieving  the
   macroeconomic and development objectives and targets set by the government,
   which yield maximum benefits in the shortest possible time for the society.

                        TABLE - 23

              Public Sector Development Programme (PSDP)
                                                              (Rs in Million)

                                           Budget    Revised    Budget
            Classification
                                              2019-20    2019-20    2020-21

A. Federal Ministries/Divisions                   348,240    283,560    394,675

    1  Aviation Division                             1,267        493       1,321
    2  Board of Investment                        100                 -         80
    3  Cabinet Division                           15,986       8,112      23,802
    4  Climate Change Division                     7,579       7,573       5,000
    5  Commerce Division                         100                 -        103
    6  Communications Division (other than
      NHA)                                    248        177        255
    7  Defence Division                           456        225        660
    8  Defence Production Division                  1,700       1,700       1,579
    9  Establishment Division                      333         24        283
    10 Federal   Education  &   Professional
        Training Division                            4,797       2,050       4,526
    11 Finance Division                           36,822      47,826      18,667
    12 Foreign Affairs Division                       30         30         10
    13 Higher Education Commission               29,047      28,497      29,470
    14 Housing & Works Division                    2,930       2,469       8,737
    15 Human Rights Division                      143         39        256
    16  Industries and Production Division             2,343        926        800
    17 Information & Broadcasting & National
        Heritage Division                           516         28        361
    18 Information Tech. & Telecom Division          7,342       4,561       6,673
    19  Inter Provincial Coordination Division           340        109        929
    20  Interior Division                             9,848       8,841      14,758
                                                           Contd…….

Page 45

                       SIZE OF PSDP
                                                          (Rs in Million)

                                       Budget    Revised    Budget
        Classification
                                          2019-20    2019-20    2020-21

21 Kashmir Affairs & Gilgit Baltistan Division
      (i+ii+iii)                                   44,699      16,729    100,425
  i.   AJK                                    26,894                 27,425
                                                      16,729
  ii.    Gilgit Baltistan                           17,805                 25,000
  iii.  Merged Districts KPK (EX FATA)               0                 -      48,000
22 Law and Justice Division                     1,340        769        991
23 Maritime Affairs Division                      3,600       4,324       2,683
24 Narcotics Control Division                    135         64         54
25 National  Food  Security &  Research
    Division                                  12,048       7,412      12,000
26 National Health Services, Regulations &
    Coordination Division                       13,377       8,119      14,508
27 National  History &  Literary  Heritage
    Division                                  128          0        195
28 Pakistan Atomic Energy Commission         24,457      26,019      23,297
29 Pakistan Nuclear Regulatory Authority          301          0        350
30 M/o. Energy (Petroleum Division)              582         72       1,786
31 Planning,   Development  &   Reform
    Division                                    7,964        797       3,545
32 Poverty Alleviation and Social Safety Div.         200         20        135
33 Railways Division                          16,000       9,016      24,000
34 Religious Affairs & Interfaith Harmony          1,000      16,280         54
35 Revenue Division                            1,818         51       1,697
36 Science  &   Technology   Research
    Division                                    7,407       1,739       4,458
37 SUPARCO                                  6,033       3,649       4,975

38  Textile Division                            203         14          0

39 Water Resources Division                   85,021      74,807      81,250

                                                        Contd…….

Page 46

                           SIZE OF PSDP
                                                              (Rs in Million)
                                           Budget    Revised    Budget
            Classification
                                              2019-20    2019-20    2020-21

B. Corporations                                197,759    173,730    158,325
    1  National Highway Authority (NHA)           155,967    129,440    118,675
    2 NTDC/PEPCO/WAPDA                     41,792      44,290      39,650
C. ERRA                                          5,000       3,680       3,000
D COVID Responsive and Other Natural
   Clamities Program                              0          0      70,000
E  Relief and Rehabilitation of IDPs               17,000          0          0
F  Security Enhancement                        53,000                 -          0
G Prime Minister's Youth Skill Dev. Initiative        5,000                 -          0
H  Clean Green Pakistan Movement/ Tourism        2,000                 -          0
I  Gas Infrastructure Development Cess            1,000          0          0
J  Merged Areas of FATA 10 Years
   Development Plan                            48,000      37,000          0
K Pak SDGs & Community Development
   Programme                                   24,000      35,250      24,000
     Total Federal PSDP (A to K):                 701,000    533,220    650,000

Page 47

                        TABLE - 24

                 EXPENDITURE OUTSIDE PSDP
                                                              (Rs in Million)

                                           Budget    Revised    Budget
            Classification
                                              2019-20    2019-20    2020-21

1  Crop Loan Insurance Scheme                     1,000        919       1,000
2  Livestock Insurance Scheme                     500        500        500
3  Credit Guarantee Scheme for Small Farmers          100          0        100
4  Provision for Reconstruction of Afghanistan           5,000       5,000       2,000
5  Subsidy to TCP for Import of Urea Fertilizer         5,000          0          0
6  Provision for Misc. Dev. Exp Outside PSDP         8,350          0                 -
7  Public Financial Management & Accountability
    to support services delivery programme              2,000          5       2,000
8  Duty Drawback of Taxes Order 2016-17           35,000      51,285          0
9  Public  Management  and  Accountability  to
   Support  Service  Delivery  Program  (PFR)
   Performance incentive to progress                  4,000       1,372       2,000
10 SME Landing Program                          450          0       2,000
11 Export package strategic trade policy               5,000          0          0
12 National Disaster Risk Management fund           1,000          0          0
13 TDPs (ERPs)                                   3,866          0          0
14 Low cast housing scheme                        5,000          0          0
15 PM Kamyab Jawan Programme                   450          0          0
16 Development Exp. Of EAD outside PSDP           8,366          0          0
17 Grant Relief And Rehabilitation of Internally
   Displaced Persons (Programme)                                  -          0      17,000
18 Security Enhancement & Other                                     -          0      36,400
19 Gas Infrastructure Development Cess
                                                                                   -          0       3,000
20 Prime Minister Youth Businuss Loan Scheme
                                                                                   -       2,807       1,000
21 Temporary Displaced Persons Emergency
   Recovery Project                                                       -          0       3,000
22 Others                                       709       3,927          0

TOTAL:                                         85,791      65,816      70,000