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    Process No.5: Preparation of Forward Estimates/Ceilings'

    Uploaded by

    Arshad Khan Afridi
    The document outlines 19 processes for preparing the provincial budget in multiple steps. It begins with developing indicative ceilings and a fiscal framework for departments for the next 3 years. A Budget Strategy Paper is then prepared jointly by Finance and Planning departments, which includes the ceilings and medium-term fiscal plans. This is presented to the Cabinet and ministers. Forms and ceilings are then issued to departments, who update their strategic plans based on the ceilings. Detailed budget reviews are conducted between departments and revisions made before the annual budget and development plan are approved by the Cabinet and presented to the provincial assembly.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Process No.5: Preparation of Forward Estimates/Ceilings'

    Uploaded by

    Arshad Khan Afridi
    31 views4 pages
    The document outlines 19 processes for preparing the provincial budget in multiple steps. It begins with developing indicative ceilings and a fiscal framework for departments for the next 3 years. A Budget Strategy Paper is then prepared jointly by Finance and Planning departments, which includes the ceilings and medium-term fiscal plans. This is presented to the Cabinet and ministers. Forms and ceilings are then issued to departments, who update their strategic plans based on the ceilings. Detailed budget reviews are conducted between departments and revisions made before the annual budget and development plan are approved by the Cabinet and presented to the provincial assembly.

    Original Description:

    budget procedure

    Original Title

    Budget 27 39

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    The document outlines 19 processes for preparing the provincial budget in multiple steps. It begins with developing indicative ceilings and a fiscal framework for departments for the next 3 years. A Budget Strategy Paper is then prepared jointly by Finance and Planning departments, which includes the ceilings and medium-term fiscal plans. This is presented to the Cabinet and ministers. Forms and ceilings are then issued to departments, who update their strategic plans based on the ceilings. Detailed budget reviews are conducted between departments and revisions made before the annual budget and development plan are approved by the Cabinet and presented to the provincial assembly.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    31 views4 pages

    Process No.5: Preparation of Forward Estimates/Ceilings'

    Uploaded by

    Arshad Khan Afridi
    The document outlines 19 processes for preparing the provincial budget in multiple steps. It begins with developing indicative ceilings and a fiscal framework for departments for the next 3 years. A Budget Strategy Paper is then prepared jointly by Finance and Planning departments, which includes the ceilings and medium-term fiscal plans. This is presented to the Cabinet and ministers. Forms and ceilings are then issued to departments, who update their strategic plans based on the ceilings. Detailed budget reviews are conducted between departments and revisions made before the annual budget and development plan are approved by the Cabinet and presented to the provincial assembly.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Process No.

    5: Preparation of Forward Estimates/Ceilings


    Development of Fiscal Framework will be enable the departments of Finance
    and Planning & Development to create indicative ceilings (recurrent and
    development budgets) for the next 3-years for each department separately.
    These ceilings are indicative in nature as they may be modified by the
    Cabinet approval or at the time of approval by the National Economic
    Council. Ceilings are presented as per the following table:
    Department
    s

    Actual
    Expenditure

    Original
    Budget

    Revised
    Budget

    Projections

    Previous
    Year

    Current
    Year

    Current
    Year

    Budg
    et
    Year

    Budget Budge
    Year
    t
    +1
    Year+
    2

    Department
    A
    Process No.6: Development of Budget Strategy Paper
    The Budget Strategy Paper (BSP) is government policy document presented
    in the Cabinet prior to the presentation of the annual budget. The purpose of
    the BSP is to:
    1. Set out the macroeconomic context
    2. Analyze the pressures on the budget
    3. Ensure that the allocation of public funds through the provincial budget
    is strategically aligned with the priorities of the government
    4. Provide a framework for consultation between the technical and the
    political levels of the government
    The BSP is developed jointly by the departments of Finance and Planning &
    Development.
    The BSP encloses Medium-Term Fiscal Framework and departmental
    indicative ceilings.
    The BSP is presented by the Secretaries of Finance and Planning &
    Development to Chief Secretary and Ministers for Finance and Planning.
    Process No. 7: Presentation of Budget Strategy Paper to the
    Cabinet

    The BSP is presented in the Cabinet meeting in the shape of a detailed


    document and a summary.
    Process No.8: Issuance of Forms and Ceilings to departments
    The Finance Department will issue Budget Call to all departments. The
    Planning & Development Department will issue Guidelines for Annual
    Development Plan.
    Budget Call Circular
    Guidelines for Annual Development Plan (ADP)
    Ceilings
    Process No.9: Update of Strategic Plan
    Based on the ceilings, the Strategy Plan prepared by the departments (as
    detailed in process No.2) will be updated. Generally high priority policy
    initiatives will be allocated higher amount of financial resources.
    Process No.10: Filling-in of Forms
    There are primary three types of forms to be filled:
    1. Forms annexed with Budget Call Circular- the LD Forms ( to be filled
    by the department)
    2. Forms annex with Budget Call Circular the BM Forms (to be filled by
    DDOs, Project/Schemes
    3. Annual Development Plan (ADP) proformas required for each
    project/scheme separately for on-going and new schemes.
    Process No.11: Pre-Budget Consultations
    Each year the department of Finance and Planning & Development hold prebudget consultations with public and civil society organizations.
    In the pre-budget consultations, the participants are encouraged to come up
    with innovative ideas that could be included in budget proposals. Report of
    these consultations in forwarded to Finance Department and Planning &
    Development Department.
    Process No.12: Detailed Review of Budget Demands
    Departments of Finance and Planning & Development will form a committee
    to review budget demands of each department separately. A schedule of
    these meetings in included in the Budget Call Circular.

    During these meetings, technical discussions are held with departmental


    Secretaries on the Strategic Plan, and Budget Call Circular Forms. Budgetfile prepared during Process No.10 can be used here.
    The departments of Finance and Planning & Development may recommend
    changes in the detailed budget and / or approve the budget demands.
    Process No.13: Review of Projects/Schemes
    The Planning & Development department will undertake a detailed review of
    project/schemes to understand their current completion status, approved
    processes, approved schemes and their budget allocations, status of
    unapproved schemes, foreign and domestic funding, milestones for the
    upcoming year
    Process No.14: Presentation of ADP to Cabinet
    The ADP (Annual Development Plan) is presented in the Cabinet. The
    Secretary Planning & Development Department presents the main contours
    of the ADP and informs Cabinet Ministers of the key policy priorities and the
    linkage of approved projects with those policies
    Process No. 15: Presentation of ADP to National Economic Council
    The Chief Minister apprises the NEC of the provincial priorities and new
    strategic initiative to be taken in shape of ADP.
    Process No. 16: Submission of final filled Budget Forms
    These forms are sent to the Computerization Wing in Finance Department.
    The Computerization Wing is responsible for entering the detailed forms in
    the PIFRA system.
    Process No. 17: Finalization of Budget Books
    Through the computerized system, the Budget section of the Finance
    Department produces the following key budget books:
    1. White Paper to the Budget- summarizing policy priorities, recurrent
    budget, development budget, loans and debts, and future liabilities
    2. Demands for Grants and Appropriations for recurrent and
    development budgets separately
    3. Annual Budget System

    Separately, three other types of information are also included:


    1) Finance Bill detailing taxation proposals
    2) Medium-Term Budget Estimates for Service Delivery (based on
    output-based budgeting methodology)
    3) Budget Speech in both English and Urdu languages.
    Process No.18: Submission of final filled Budget Forms
    The Planning & Development Department produces Annual Development
    Plan consisting of projects/schemes for which budget is allocated.
    The Annual Development Plan is developed using the ADP forms.
    Process No. 19: Presentation of the Budget in the Cabinet and
    Provincial Assembly
    The budget is finally presented in the Cabinet and Provincial Assembly. The
    Finance Minister makes a budget speech in the Assembly before the budget
    debate begins.
    As per the Constitution, the Governor signs the Finance Bill, and the Chief
    Minister approves the Schedule of Authorized Expenditure (expenditure
    budget by Demands for Grants) after vote of approval by the Assembly
    The Rules and Privileges of the Provincial Assembly specify the rules and
    procedures for the budget session.

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