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Federal Medium Term Budget Estimates for Service Delivery 2012 - 15

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Federal Medium Term Budget Estimates for Service Delivery 2012 - 15 Federal Medium Term Budget Estimates for Service Delivery 2012 - 15 Government of Pakistan Finance Division Islamabad Federal Medium Term Budget Estimates for Service Delivery 2012 – 15 Government of Pakistan Finance Division Islamabad Preface The Medium Term Budget Estimates for Service Delivery set out in this document have been prepared under the Medium Term Budgetary Framework (MTBF) for the Federal Government. The Budget Estimates for Service Delivery (BESD) constitute a response to the growing need for adequate documentation, at the time of the presentation of the budget, of the purposes for which Parliament is being requested to appropriate funds. The BESD provide supplementary information to the details, which have long been provided through the Details of Demands for Grants and Appropriations – the so-called “Pink Book”, which sets out the details of the budget by accounting budget line according to the economic and functional classifications of the Chart of Accounts. The BESD, referred to as the “Green Book”, while presenting the same budget as the Pink Book, has a different orientation and purpose. The principal aim of the Green Book is to provide Parliament and other stakeholders with the clearest possible statement of the services which are to be delivered and the investments to be undertaken through the application of the funds appropriated by Parliament, and, equally important, the results which are expected to be achieved in terms of the achievement of goals of public sector activity and the benefits expected to accrue to different population groups from the activities of the federal Government. The publication of the Green Book marks a major step forward in enhancing the transparency of the federal budget. The Green Book represents the results of the adoption of the MTBF in its third year of application. Attention is drawn to the following major innovations, which are included in this Green Book: • The Green Book uses the 3-year framework for budgetary planning which lies at the heart of the MTBF reforms. Under this process ministries make their plans and prepare budgetary estimates for a rolling 3-year budgetary horizon. This includes the 2012-13, which are to be appropriated by Parliament, and two additional or “outer” years (in this case 2013-14 and 2014- 15) which represent projections of budget estimates for planning purposes and not to be appropriated; • The centerpiece of the Green Book is the breakdown of each ministry’s budget by “Outputs”. Outputs represent major lines of service delivery of each ministry. In the preparation of the MTBF budgets each ministry has been requested to identify its main lines of service delivery and the costs associated with the delivery of each main line of service, down to the level of the individual spending unit. It will also make it easier for Parliament and other i stakeholders to assess whether the public is achieving value for money through the federal budget. • While for accounting purposes, the government budget is divided between the recurrent budget and the development budget, the delivery of outputs usually requires a combination of allocations through the recurrent budget to meet the operations costs and development budget to meet cost of expansion of access to services or improvement of the future quality of services delivered. The adoption of MTBF is expected to lead to a closer harmonization in recurrent and capital spending, both of which are critical for service delivery and development in a wider sense. • Besides identifying the lines of service delivery of each ministry, the Green Book also provides information on the indicators, which should be used for measuring the quantity and quality of services (outputs) to be delivered. The Green Book also provides targets for the levels of services, which the ministries and divisions are expecting to achieve. An important purpose for adopting the system of budgetary preparation based on outputs/services, is to provide a basis, defined at the time of budget preparation, for monitoring, during budget execution, of the extent to which the results expected from public spending are, in fact, being achieved. • In addition to defining the services (outputs) to be delivered, the Green Book also identifies the outcomes, which are expected to be achieved through public spending. Outcomes refer to the effects of service delivery on the target population of each line of service delivery. Outcomes are often more difficult to measure than outputs and are typically measured less frequently. While some outcomes are available through different sources of information, such as the regular censuses and surveys undertaken by the Pakistan Bureau of Statistics, the MTBF aims to provide information of investment that Government makes to achieve those outcomes. From the year 2012-13 the Government intends to further improve the budgetary management processes by introducing Results Based Management requiring selected Ministries to have a Medium-Term Strategic Plan that will be monitored and evaluated on regular basis. ABDUL WAJID RANA Secretary to the Government of Pakistan Finance Division Islamabad, June 1, 2012 ii Composition of this document This document presents medium-term (2012-15) budget estimates for service delivery of Federal Government by each Ministry separately. The budget 2012-13 is appropriated by the Parliament while the budget estimates for outer-years (2013-15) are provided for planning purposes. The budget estimates for outer-years are a result of a technical exercise completed by the Finance and Planning Divisions to provide predictability of resources on the recurrent and development budgets. The Cabinet at its meeting on 11 April, 2012 approved the issuance of Indicative Budget Ceilings 2012-15 to all Federal Ministries for both recurrent and development budgets. For each Ministry the following information is presented: 1. Executive Authority: A name of an organisation/entity (e.g. Ministry / Division etc.) is provided. Each executive authority is headed by a Principal Accounting Officer. 2. Principal Accounting Officer(s): The designation and the name of the entity (e.g. Ministry / Division etc.) are provided. Where there are more than one Principal Accounting Officers (PAOs) in a Ministry, designations and related organisations are provided separately. 3. Goals(s): Goals of each entity (e.g. Ministry / Division etc.) have been provided separately. This is a high- level statement that provides an overall goal. 4. Budget by Outcomes: In this section the budget is presented for the medium term 2012-15, which includes both recurrent and development by Outcomes for the Ministry. Also, preliminary actual expenditure for 2010-11 and original budget for 2011-12 is presented for each outcome. 5. Strategic Overview: In this section strategic overview of the budget of each executive authority is presented. This overview is presented in a specific format addressing three main areas; a) Major achievements against the services delivered in 2010-11, b) Major challenges faced or being faced and c) Medium term (2012-15) policy priorities of the executive authority. iii 6. Budget by Outputs: In this section the budget is provided for Outputs (Services Delivered) for each Outcome. Also, preliminary actual expenditure for 2010-11 and original budget for 2011-12 is presented for each output. 7. Selected Performance Indicators and Targets by Outputs: In this section Key Performance Indicators and Targets have been provided for each Output defined for three years (2012-15). In addition, targets achieved in 2010-11 and original targets set at the time of budget for 2011-12 have also been presented. 8. Budget by Input (Object Classification): In this section medium-term budget is presented by heads of Chart of Accounts (major heads of object classification). Also, preliminary actual expenditure for 2010-11 and original budget for 2011-12 is presented by each major head of object classification. This table provides an analysis of inputs (resources) required to deliver the outputs and achieve the associated targets. 9. Progress of Selected Construction Projects: In this section progress of selected construction projects undertaken by a ministry is shown. The progress is shown in the form of percentage completion cumulatively i.e. the outer years include in addition to the progress made during those years, the percentage completion of the preceding years. 10. Total Number of Demands: In this section Demands and their numbers as per the ‘Demands for Grants and Appropriations’ for 2011-12 are shown. This table facilitates the reader in reconciling this document (Green Book) with the ‘Demands for Grants and Appropriations’. Note Please note that the Actual Expenditure shown in this document is based on preliminary figures obtained from the ministries and Accountant General of Pakistan Revenue (AGPR). iv Contents Page # 1 Cabinet Secretariat 1 2 Ministry of Capital Administration and Development 44 3 Ministry of Climate Change 48 4 Ministry of Commerce 53 5 Ministry of Communications 58 6 Ministry of Defence 63 7 Ministry of Defence Production 69 8 Ministry of Economic Affairs and Statistics 72 9 Ministry of Finance, Revenue and Planning & Development 85 10 Ministry of Foreign Affairs 130 11 Ministry of Housing and Works 134 12 Ministry of Human Resource Development 138 13 Ministry of Human Rights 142 14 Ministry of Industries 147 15 Ministry of Information and Broadcasting 152 16 Ministry of Information Technology 157 17 Ministry of
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