Investor Presentaiton

PREFACE White Paper on the Budget is rooted in tradition. It is a lucid interpretation of the Annual Budget and aims to highlight, in a most readable manner, the Revenues and Expenditures of the Province. It provides a succinct commentary on the myriad Policy standpoints that the Provincial Government aims to adopt in the financial year. A focused overview of macroeconomic challenges and situation sets the context of this White Paper. The Budget formulation for Fiscal Year 2020-21 has been impacted overwhelmingly by the Covid-19 Crisis. The Finance Department's work was already cut out for the last quarter of FY 2019-20, with major realignments and a calibrated revisionary approach. The Finance Department had to make serious judgment calls and enforce a fiscal discipline regime of the sternest order. The discerning eye had no time to even blink. This very approach was resorted to in the making of the Annual Budget 2020-21 as well. A Covid-19 centric modulation of Punjab Growth Strategy was initiated and has given purposive underpinning to both the Development and Non-Development Budgets. This approach has led to targeted allocations for addressing Health care deficit, Social Protection, Economic Regeneration and employment generation. With Federal and Provincial Revenues sliding sharply, Expenditure Management without compromising Development and improved service delivery has been the single, most important concern for the Finance Department. The atypical and calibrated rationalization of the Current Budget has, hence, thrown up an impressive ADP of the size of PKR 337 billion in a crisis-infested FY. The Finance Team also draws comfort in introducing two unique Fiscal instruments for this Financial Year. Both, put together, have the makings of a paradigmatic shift in Budget formulation and implementation. Inclusive Budgeting was launched with modest expectations but has evidently resulted in eliciting useful opinions on budgetary priorities from the public at large. These were subjected to analytics and used for appropriation of funds. We draw a great sense of gratification from this promising beginning. The Framework for Rolling Expenditure will keep us in good stead in a crisis-stricken FY by enabling us to modulate and prioritize Non-Development Expenditure through a colour-coded, calibrated matrix over the four quarters of the FY. In addition to this, the White Paper brings to the fore the utility and evolution of institutional forums like the Standing Committee of the Cabinet on Finance and Development, and institutional interventions like the Ready Reckoner. Ready Reckoner is fast-becoming an instrument of pro-active disclosure that is generated every month. The out-going FY has been immensely challenging for the entire Finance Department team for reasons of a deeply stressed economy and a seemingly protracted Covid-19 crisis. Budget making in such a situation is an onerous exercise in undertaking intricate balancing acts. I I am honour-bond, therefore, to acknowledge the continuous and resolute hard work of the entire team working on the Budget. As for the assiduous compilation of the White Paper, I would like to acknowledge the efforts of the entire team; in particular Mujahid Sherdil (SSF-Budget & Resources), Rana Ubaid Ullah Anwar (AFS-Budget), Sarah Hayat (DS-Resource-1), Faisal Rashid (Senior Consultant), Farhan Abbas and Hammad Uddin Khan (IDAP). The first two cited here had bereavements in the family (in one case really tragic) right in the middle of the busiest period of Budget formulation. Both kept contributing in difficult days for them and were back in office in no time. The Finance Team relied heavily on the wise counsel of Makhdoom Hashim Jawan Bakht, Minister Finance, right through the effort. Gratitude is also due to the Chief Minister and the Chief Secretary for their continued guidance. June 15, 2020 ABDULLAH KHAN SUMBAL Finance Secretary Government of the Punjab "As countries contain the pandemic and shutdowns end, broad-based, coordinated fiscal stimulus - depending on countries' financing constraints - will become a more effective tool to foster the recovery. Page 1 IMF Fiscal Monitor, April, 2020

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