Budgeting in pakistan 6566 unit 3

Budgeting in pakistan 6566 unit 3

• 1.
  Group: Ibrash Pasha Umair Danish SaimaNaveed
• 2.
   Definition ofBudget ◦ A statement of receipts/income/ revenue and expenditure. ◦ It’s a financial plan for specified period. ◦ Its estimation of revenue/ resources and expenses over a specified future period of time.
• 3.
   Concept ofBudget ◦ It’s a plan of action based of past performance. ◦ It’s a financial planning tool. ◦ Its not just forecasting, or Control but also a planning and coordination process and tool. ◦ Budget is practiced at various level like individual, family, department, organization/ institution, district, province or national level
• 4.
   Budget roleat National level ◦ It’s a tool of development planning ◦ Management control ◦ It’s a tool of economic planning  In planned/ socialist economies budget is the framework of economic planning, it’s the overall regulator of all determinants of economic growth  Its drawn up in terms of annual plan, it’s the annual break down of 5 year plan  Governments budget emphasis is on capital formation for accelerating growth and development.
• 5.
   Advantages ofbudgeting ◦ To establish in advance the objective or result of budget period. ◦ To provide the means of coordinating the activities of various departments in organizations ◦ To provide period to period basis of comparison. ◦ To provide basis of orderly management of public funds.
• 6.
   Types ofbudgets ◦ Line item budget ◦ Performance based budget ◦ Planning- Programming- Budgeting system (the indivisible holistic approach for all 3 which are interrelated, inter depended and interacting with each other.
• 7.
   Umair Danish BUDGET PROCEDURES  STAGES OF BUDGET PROGRESS 1. Formulation 2. Authorization 3. Implementation 4. Review
• 8.
   DEVELOPMENTAL BUDGET 1.Cost of land. 2. Cost of Civil work. 3. Expenses on Project Directorates 4. Development of land 5. Cost of consultancy services for civil work, etc. 6. Cost of furniture, equipment, machinery, etc. 7. Foreign training/experts/consultants. 8. Scholarships.
• 9.
   NONDEVELOPMENTAL BUDGET 1.Salaries and allowances of operational staff. 2. Petrol, oil and lighting. 3. Service Charges. 4. Electricity, Water bill, etc. 5. Consumables (Chemicals, Stationary, etc.) 6. Repair and Maintenance of buildings.
• 10.
   Saima Naveed Formulation of ADP for the province of Punjab, Pakistan  First stage: estimation of resources and determination of inter sectoral priorities  Second stage: preparation of list of schemes  Third stage: finalization and printing of first edition of ADP  Fourth stage: final ADP meeting with departments and preparation of ‘hard cire’ ADP  Fifth stage: finalization of ADP and its authentication
• 11.
  Bottlenecks in Budgeting Budgetary cuts  Dichotomy of developmental and non developmental budgets  Overestimation or under estimation of project costs  Bifurcation of planning and budgeting  Phasing of projects  Release of funds on a quarterly basis  Delay in the release of funds
• 12.
  Thanks