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Investor Presentaiton

Chapter III - Estimates of Expenditure PKR 61.1 bn RE FY 2019-20 Education Affairs & Services +18% PKR 71.8 bn BE FY 2019-20 At Provincial level, major spending shall be at Secondary and Tertiary levels of Education; i.e. Colleges and Universities. As against Revised Estimates for FY2019-20, the Current Year's allocation receives 18% increase over. Capital Expenditure in Account No. (Non-Food) i Principal Repayment of Domestic and/or Foreign Debt Loans and advances made to Government entities Capital Expenditure Contributions made to Pension and/or General Provident Fund Government of Punjab maintains Provincial Account No. II (Food) with the State Bank of Pakistan. Capital Expenditure out of this account is incurred on state commodity trading operations in food grains especially procurement of wheat for maintaining critical stocks of the staple food. Out of sale proceeds of the grains released to the Flour Mills, loans obtained from the commercial banks for trading operations of Food Department are repaid. Capital Expenditure Debt Management - Repayment of Principal Investment Loans and Advances Loans to other Non-Financial Institutions Loans to Government Servants State Trading in Medical Stores Total Account No. I Public Debt Account No. II Total Current Capital Expenditure BE 2019-20 RE 2019-20 (PKR Billion) BE 2020-21 49.150 47.178 55.084 84.400 6.720 43.800 76.977 28.418 29.411 76.977 28.418 29.411 0.000 0.093 0.257 0.127 210.621 82.573 128.518 208.255 334.545 331.869 418.876 417.118 460.292 Public Financial Management Reforms initiated shift from Incremental Budgeting to Medium-Term Budgeting Framework (MTBF) against the traditional yearly approach. On the basis of macroeconomic indicators, a Medium-Term Fiscal Framework (MTFF) was developed to finalize an indicative resource envelope for next three Financial Years. Faced with uncertainties this year, Finance Department intends to introduce Framework for Rolling Expenditure to control and monitor expenditure on the basis of demand as against traditional supply model. The Framework may make budgetary allocations resilient enough to combat unexpected macroeconomic challenges. With the introduction of the Framework, Administrative Department will be expected to demand release of allocated monies spread over the entire fiscal years based on actual needs at a given time. This constitutes a paradigm shift of sorts as well. Page 28
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