Fiscal Policy Division Pakistan Institute of Development Economics Islamabad

Transcription

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2 (6 th August, 2010) Ayaz Ahmed Sr. Research Economist & Mahmood Khalid Research Economist Fiscal Policy Division Pakistan Institute of Development Economics Islamabad

3 Provincial Budget Allocations Grants and Loans Financing of Deficit Provincial Transfers Provincial Revenues Provincial Expenditures Budget Making-Post NFC Source of Data 1. Ministry of Finance Web-site 2. State Bank Annual Report (2009) 3. Combined Finance and Revenue Accounts of the Federal, Provincial and District Governments (Various issues)

4 Provincial Budget Allocations

5 Budget Allocation in PUNJAB (Rs In Million) Heads/Years Total Revenue/Grants 159, , , , ,377 Provincial Own Receipts Tax Revenue Non-Tax Revenue Federal Transfers Provincial Share Federal Grants Total Expenditure 182, , , , ,306 Current Development Balance (22,367) (14,285) (80,579) (13,462) (18,929) Own Receipts/Expenditure Total Receipts/Expenditure Balance/Expenditure (12.27) (6.05) (25.54) (3.95) (4.94)

6 Budget Allocation in SINDH (Rs In Million) Heads/Years Total Revenue/Grants 103, , , , ,959 Provincial Own Receipts Tax Revenue Non-Tax Revenue Federal Transfers Provincial Share Federal Grants Total Expenditure 104, , , , ,340 Current Development Balance (1,258) (6,217) (15,042) 7,284 (10,381) Own Receipts/Expenditure Total Receipts/Expenditure Balance/Expenditure (1.20) (4.57) (9.29) 4.01 (4.71)

7 Budget Allocation in Khyber Pukhtoon Khawa (Rs in Million) Total Revenue/Grants 47,618 68,267 63,904 99, ,934 Provincial Own Receipts Tax Revenue Non-Tax Revenue Federal Transfers Provincial Share Federal Grants Total Expenditure 46,909 76,854 72,813 84, ,157 Current Development Balance 709 (8,587) (8,909) 15,660 8,777 Own Receipts/Expenditure Total Receipts/Expenditure Balance/Expenditure 1.51 (11.17) (12.24)

8 Budget Allocation in Baluchistan (Rs In Million) Heads/Years Total Revenue/Grants 27,126 30,453 37,737 51,552 64,205 Provincial Own Receipts Tax Revenue Non-Tax Revenue Federal Transfers Provincial Share Federal Grants Total Expenditure 37,612 47,620 52,726 64,939 59,175 Current Development Balance (10,486) (17,167) (14,989) (13,387) 5,030 Own Receipts/Expenditure Total Receipts/Expenditure Balance/Expenditure (27.88) (36.05) (28.43) (20.61) 8.50

9 Federal Grants and Loans

10 Federal Loans and Grants-Punjab M i l l i o n R s Federal loans & Grants Loans (net) Grants Over all Balance

11 Federal Loans and Grants-Sindh M i l l i o n R s Federal loans & Grants Loans (net) Grants Over all Balance

12 Federal Loans and Grants-Khyber Pakhtoon Khawa M i l l i o n R s Federal loans & Grants Loans (net) Grants Over all Balance

13 Federal Loans and Grants-Baluchistan M i l l i o n R s Federal loans & Grants Loans (net) Grants Over all Balance

14 Financing of Deficits

15 Financing of Budget Deficits-Punjab (Million RS) Over all Balance (Total Revenue- Exp) Financing Domestic Bank Non Bank

16 Financing of Budget Deficits-Sindh (Million Rs) Over all Balance (Total Revenue- Exp) Financing Domestic Bank Non Bank

17 Financing of Budget Deficits-Khyber Pakhtoon Khawa (Million Rs) Over all Balance (Total Revenue- Exp) Financing Domestic Bank Non Bank

18 Financing of Budget Deficits-Baluchistan (Million Rs) Over all Balance (Total Revenue- Exp) Financing Domestic Bank Non Bank

19 Cost of the Debt (Interest Payment as % of Development Expenditures % Punjab Sindh Khyber Pakht oon Khawa Baluchist an

20 Provincial Transfers

21 Transfers to Provinces from the Divisible Pool Receipts Revenue Receipts Less Transfers to Provinces % among Sources Taxes on Income Sales Tax Excise Duty & Royalties Surcharges on Gas Custom Duties Capital Value Tax Federal Excise ( Net on Gas ) G.S.T ( Provincial )

22 Rs. Million Budget Revised Budget Gross Total revenues Provincial Share (58%) %

23 Rs. Million Budget Revised Budget Total PSDP Financing of PSDP by Provinces %

24 Rs. Million Budget Revised Budget Change in the Provincial Cash Balance Repayments to Federal Government Recovery of Loans from Provinces Interest payments

25 Resources available for Provinces to Decide Net Resource transfer from Revenues Punjab Financing of PSDP by Provinces Sindh Change in Provincial Cash Balance KPK Repayment to Federal Government Baluchistan % Left over for own Decision

26 Resource availability for Provinces Net Resource transfer increase from Revenues Increase in PSDP Increase in Provincial Cash Balances Increase in Repayment to Federal Government Net Resource transfer increase

27 Inter-Provincial Revenue Distribution under various NFC Awards (Percentage) Years Fed : Prov. Punjab Sindh Khyber Pakht oonkh wa Balochist an Total : : Interim award : : Interim award : Source: Ministry of Finance, Pakistan

28 7th NFC resource transfers (vertical share is 56% this year and 57% next years) Province-Wise Share Budget Revised Budget Punjab Sindh KPK Baluchistan Total Transfer from Revenue of Federal

29 Actual Disbursement as Percentage of Total Projected Transfers Under Different NFCs Receipts Revenue Receipts , , , ,783.6 Transfers to Provinces Committed Vertical Distribution of Resources (Government of Punjab White Paper on the Budget, ) Actual Transfers as a Percentage of Committed

30 Actual Disbursement as Percentage of Total Projected Transfers Under Different NFCs Year Total Punjab Sindh NWFP Baluchistan Source: Ahmad Nuzhat & Syed Ashraf Wasti in ADB report: Intergovernmental Fiscal Transfer in Asia: Curent Practice and Challenges for the Future, 2002

31 Provincial Revenues

32 Provincial Revenues-Punjab Provincial Taxes Proerty Taxes Excise Duties Stamp Duties Motor Vehicles Tax Other Provincial Nontax Intrest Irrigation Others Total Provincial Revenues

33 Provincial Revenues Shares-Punjab % Provincial Taxes Proerty Taxes Excise Duties Stamp Duties Motor Vehicles Tax Other Provincial Nontax Intrest Irrigation Others

34 Provincial Revenues-Sindh M i l l i o n R u p e e s Provincial Taxes Proerty Taxes Excise Duties Stamp Duties Motor Vehicles Tax Other Provincial Nontax Intrest Irrigation Others Total Provincial Revenues

35 Provincial Revenues Shares-Sindh % Provincial Taxes Proerty Taxes Excise Duties Stamp Duties Motor Vehicles Tax Other Provincial Nontax Intrest Irrigation Others

36 Provincial Revenues-Khyber Pakhtoon Khawa M i l l i o n R u p e e s Provincial Taxes Proerty Taxes Excise Duties Stamp Duties Motor Vehicles Tax Other Provincial Nontax Intrest Irrigation Profits from hydro electricity Others Total Provincial Revenues

37 Provincial Revenues Shares-Khyber Pakhtoon Khawa % Provincial Taxes Proerty Taxes Excise Duties Stamp Duties Motor Vehicles Tax Other Provincial Nontax Intrest Irrigation Profits from hydro electricity Others

38 Provincial Revenues-Baluchistan M i l l i o n R u p e e s Provincial Taxes Proerty Taxes Excise Duties Stamp Duties Motor Vehicles Tax Other Provincial Nontax Intrest Irrigation Others Total Provincial Revenues

39 Provincial Revenues Shares-Baluchistan % Provincial Taxes Proerty Taxes Excise Duties Stamp Duties Motor Vehicles Tax Other Provincial Nontax Intrest Irrigation Others

40 Provincial Expenditures

41 Share of Major Function among Expenditures from Consolidated Funds Revenue Expenditures Federal Punjab Sindh Khyber Pakhtoon Khawa (some unallocable amount is mentioned) Baluchistan General Public Service Defence Public Order and Safety Affairs Economic Affairs Environment Protection Housing and Community Amenities Health Recreation, Culture and Religion Education Affairs and Services Social Protection

42 Share of Major Function among Expenditures from Consolidated Funds Capital Expenditures Federal Punjab Sindh Khyber Pakhtoon Khawa Baluchistan General Public Service Defence Public Order and Safety Affairs Economic Affairs Environment Protection Housing and Community Amenities Health Recreation, Culture and Religion Education Affairs and Services Social Protection

43 Share of Governments for Major Function among Total Expenditures from Consolidated Funds Federal Revenue Expenditures General Public Service Defence Public Order and Safety Affairs Economic Affairs Environment Protection All Provinces Housing and Community Amenities Health Recreation, Culture and Religion Education Affairs and Services Social Protection

44 Share of Governments for Major Function among Total Expenditures from Consolidated Funds Federal All Provinces Capital Expenditures General Public Service Defence Public Order and Safety Affairs Economic Affairs Environment Protection Housing and Community Amenities Health Recreation, Culture and Religion Education Affairs and Services Social Protection

45 Expenditures from Consolidated Funds-Federal P ercentage Revenue Expenditures Capital Expenditures Loans and Advances

46 Expenditures from Consolidated Funds-Sindh P ercentage Revenue Expenditures Capital Expenditures Loans and Advances

47 Expenditures from Consolidated Funds-Khyber Pakhtoon Khaw a P ercentage Revenue Expenditures Capital Expenditures Loans and Advances

48 Expenditures from Consolidated Funds-Baluchistan P e rc e n ta g e Revenue Expenditures Capital Expenditures Loans and Advances

49 Expenditures from Consolidated Funds-All Provinces P e rc e n ta g e Revenue Expenditures Capital Expenditures Loans and Advances

50 Expenditures from Consolidated Funds-All Governments P e rc e n ta g e Revenue Expenditures Capital Expenditures Loans and Advances

51 Expenditures Shares Among total from Consolidated Funds-Federal P ercen tag e Revenue Expenditures Loans and Advances Capital Expenditures Total Expenditures

52 Expenditures Shares Among total from Consolidated Funds- All Provinces P ercentage Revenue Expenditures Capital Expenditures Loans and Advances Total Expenditures

53 Budget making Post 7 th NFC

54 Punjab Sindh KPK Baluchista n All Provinces Budget components Budget Change ( ) 1 Total Receipts Total Revenue Receipts Total Federal Transfer Federal Share of Taxes Subventions/Grants Direct Transfers Total Own Revenue Total Own Tax Revenue Own Direct Taxes Own In-Direct Taxes Own Non-Tax Revenues Total Capital Receipts Recoveries (Loans and Advances) State Trading Un-funded Debt Others

55 Punjab Sindh KPK Baluchista n All Provinc es Budget components Change ( ) 2 Total Expenditures Current Expenditures Current Revenue Expenditures Debt Servicing Current Capital Expenditures Development Expenditures Development Revenue Expenditures Development Capital Expenditures Surplus/Deficit

56 Provincial Budgeting Process is underpinned by Fiscal authority Over all the provinces own revenue base is low and stagnant Fiscal Transfers play a key role in cost of debt and debt servicing for the provinces There are different expenditure menus for each province representing its political/governance economy There has to be a constitution barring provinces to go over and above a threshold level of fiscal deficit Provincial capacity building in public financial management is required. However it should not just be in accounts keeping rather linking it with targets and achievements should be done. All the federal planning documents should now also incorporate the provincial public-finance aspects as well

57 Thanks for the Patience