Medium Term Budget Estimates for Service Delivery on the Principles of Sound Public Sector Budgeting for Translating Its Vision and Strategies Into Action
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Public sector budgeting systems evolve and change according to the dynamics of public sector management. Public sector budgets are not merely used to allocate resources among competing needs, their usage as a tool to monitor performance has grown tremendously in recent years. Since the traditional budget does not provide information on results to be achieved from the use of public resources, one needs to look at the output based budgets (OBB) of the departments. The OBB in Khyber Pakhtunkhwa was introduced in 2010, as a supplement to the traditional budget. The objective of OBB is to provide a link between the financial budget of public sector entities and tangible targets in order to enhance the effectiveness and efficiency of public spending. The OBB has been designed to rise above the traditional line item system to clearly define outcomes and outputs for all government departments and to bring about improvements in the quality of governance. It serves as a tool for evaluation of the achievement of last year’s results, which can be utilized to provide feedback to improve the policy design and measurement of key performance indicators. Like previous years, the Government of Khyber Pakhtunkhwa has formed its Output Based Budget/Medium Term Budget Estimates for Service Delivery on the principles of sound public sector budgeting for translating its vision and strategies into action. As such, it presents its budget estimates for the medium term of 3 years ( 2017-18 to 2019-20) in an integrated manner with a focus on agreed level of outputs/service delivery. DISCLAIMER: Progress reported against targets set for financial year 2016 -17 is up to March 2017 and those key performance indicators against which progress and future targets were not conveyed by the departments have been left blank. i The foremost principle of effective management of public resources is that public resources should be utilised for the best possible public benefit. The Government of Khyber Pakhtunkhwa, adhering to its unremitting commitment to bring change, has taken numerous measures to improve public financial management systems and practices in the province. The Government has, therefore, started implementation of Public Financial Management Reform (PFM) Strategy ( 2017-18 to 2019-20), which will help in strengthening key public financial management structures and processes by introducing international best practices in the field, both for Provincial Government and the Local Governments of Khyber Pakhtunkhwa. The Government of Khyber Pakhtunkhwa assigns great importance to socio-economic development of the people of the province. However, development and prosperity cannot be ensured without adequate and sustainable flow of funds. Through concerted efforts the government has been able to establish peace and security in the province, which are pre-requisites for establishing a conducive economic environment. In order to stimulate economic growth and development, promoting employment and creating an atmosphere of investment, the Government of Khyber Pakhtunkhwa has adopted two-pronged approach. On one hand, it is taking initiatives to maximise its revenue potential from local resources, while on the other hand, agreements are being signed with foreign investors under the CPEC to further enhance development of the region. In order to equip the government departments with adequate resources and systems and make best use of the emerging opportunities, it is also establishing specialised units within the government system. The “Medium Term Budget Estimates for Service Delivery” is the result of an extensive exercise by all departments under Medium Term Budgetary Framework and Output Based Budgeting methodology. This documents provides departments’ prioritized expenditure plans and indicators to gauge their performance for results within the available financial resources. It is useful for the depa rtments for having greater focus on Government’s policies and priorities leading to improved service delivery. I would like to appreciate the efforts and dedication of all line departments, Sub-National Governance Programme, and especially the staff of Finance Department, which made it possible to publish this informative and useful book. SHAKEEL QADIR KHAN SECRETARY, FINANCE DEPARTMENT, KHYBER PAKHTUNKHWA ii TABLE OF CONTENTS ABOUT THIS BOOK ....................................................................................................................................... I FOREWORD .............................................................................................................................................. II LIST OF ACRONYMS ................................................................................................................................. IV INTRODUCTION ............................................................................................................................................... 1 MEDIUM TERM FISCAL FRAMEWORK GOVERNMENT OF KHYBER PAKHTUNKHWA 2017-18 TO 2019-20 ................... 4 BUDGET ESTIMATES: BY COMPONENTS OF PROVINCIAL ACCOUNT-I ............................................................................. 6 BUDGET ESTIMATES: BY MAJOR TYPE OF EXPENDITURE ............................................................................................. 6 BUDGET ESTIMATES: BY SECTORS ........................................................................................................................ 7 SOCIAL SERVICES ...................................................................................................................................... 8 DEPARTMENT WISE BUDGET ESTIMATES FOR SOCIAL SERVICES SECTOR ........................................................................... 9 AUQAF, HAJJ, RELIGIOUS AND MINORITY AFFAIRS DEPARTMENT ............................................................................... 10 ELEMENTARY & SECONDARY EDUCATION DEPARTMENT .......................................................................................... 13 HEALTH DEPARTMENT .................................................................................................................................... 22 HIGHER EDUCATION, ARCHIVES AND LIBRARIES DEPARTMENT ................................................................................... 29 INFORMATION AND PUBLIC RELATIONS DEPARTMENT ............................................................................................. 34 POPULATION WELFARE DEPARTMENT ................................................................................................................. 37 PUBLIC HEALTH ENGINEERING DEPARTMENT ........................................................................................................ 40 RELIEF, REHABILITATION AND SETTLEMENT DEPARTMENT ........................................................................................ 44 ZAKAT, USHR, SOCIAL WELFARE, SPECIAL EDUCATION AND WOMEN EMPOWERMENT DEPARTMENT ................................. 49 GROWTH ................................................................................................................................................ 55 DEPARTMENT WISE BUDGET ESTIMATES FOR GROWTH SECTOR ................................................................................ 56 AGRICULTURE, LIVESTOCK AND COOPERATIVE DEPARTMENT ..................................................................................... 58 COMMUNICATION AND WORKS DEPARTMENT ...................................................................................................... 65 ENERGY & POWER DEPARTMENT ....................................................................................................................... 69 ENVIRONMENT DEPARTMENT ........................................................................................................................... 73 FOOD DEPARTMENT ....................................................................................................................................... 79 HOUSING DEPARTMENT .................................................................................................................................. 82 INDUSTRIES, COMMERCE AND TECHNICAL EDUCATION DEPARTMENT .......................................................................... 85 IRRIGATION DEPARTMENT ................................................................................................................................ 89 LABOUR DEPARTMENT .................................................................................................................................... 93 MINERALS DEVELOPMENT DEPARTMENT ............................................................................................................. 96 SCIENCE & TECHNOLOGY AND INFORMATION TECHNOLOGY DEPARTMENT ................................................................. 100 SPORTS, CULTURE, TOURISM, ARCHAEOLOGY, MUSEUMS AND YOUTH AFFAIRS DEPARTMENT ........................................ 105 TRANSPORT AND MASS TRANSIT DEPARTMENT ................................................................................................... 112 GOVERNANCE ...................................................................................................................................... 116 DEPARTMENT WISE BUDGET ESTIMATES FOR GOVERNANCE SECTOR ........................................................................... 117 ESTABLISHMENT AND ADMINISTRATION DEPARTMENT .........................................................................................