POST BUDGET- 2012

S.KAMAL HAYDER KAZMI,
(feedback@pgeconomist.com)
Research Analyst
, PAGE
June 13 - 19, 2011

BUDGETARY POSITION (Rs in Million)

CLASSIFICATION BUDGET 2010-11 REVISED 2010-11 BUDGET 2011-12
i. RESOURCES ( a + b) 2,256,278 2,107,150 2,463,292
a. Internal Resources 1,869,659 1,817,325 2,049,363
Revenue Receipts (Net) 1,377,350 1,238,188 1,528,829
Capital Receipts (Net) 325,384 459,332 395,652
Estimated Provincial Surplus 166,925 119,805 124,882
b. External Resources 386,620 289,824 413,929
ii. EXPENDITURE 2,422,823 2,559,367 2,766,816
Current Expenditure 1,997,892 2,295,921 2,314,859
Development Expenditure (PSDP) 290,000 196,000 300,000
Development Loans & Grants to Provinces 31,385 21,929 54,871
Other Development Expenditure 123,545 45,517 97,085
Estimated Operational Shortfall (20,000) 0 0
BANK BORROWING 166,544 452,217 303,524

REVENUE RECEIPTS (Rs in Million)

CLASSIFICATION BUDGET 2010-11 REVISED 2010-11 BUDGET 2011-12
Tax Revenue 1,778,715 1,679,363 2,074,182
Direct Taxes 657,700 626,900 743,600
Indirect Taxes 1,121,015 1,052,463 1,330,582
Non - Tax Revenue 632,279 556,526 657,968
Property and Enterprise 169,985 103,625 195,330
Civil Administration and Other Functions 332,250 302,640 321,383
Miscellaneous Receipts 130,044 150,261 141,255
Revenue Receipts (Gross) 2,410,994 2,235,889 2,732,150
Less: Provincial Share 1,033,644 997,701 1,203,321
Revenue Receipts (Net) 1,377,350 1,238,188 1,528,829

TAX REVENUE (Rs in Million)

CLASSIFICATION BUDGET 2010-11 REVISED 2010-11 BUDGET 2011-12
*TAX REVENUE ( I + II) 1,778,715 1,679,363 2,074,182
I. Direct Taxes 657,700 626,900 743,600
Income Tax 633,000 602,500 718,600
Workers Welfare Fund 20,000 20,000 25,000
Capital Value Tax 4,700 4,400 0
II. Indirect Taxes 1,121,015 1,052,463 1,330,582
Customs 180,800 173,300 206,400
Sales Tax 674,900 654,600 836,700
Federal Excise 153,600 132,900 165,600
Petroleum Levy 110,000 90,000 120,000
Other Taxes (ICT) 1,640 1,592 1,807
Airport Tax 75 71 75
* Out of which F.B.R tax collection 1 ,667,000 1,587,700 1,952,300

NON - TAX REVENUE (Rs in Million)

CLASSIFICATION BUDGET 2010-11 REVISED 2010-11 BUDGET 2011-12
NON - TAX REVENUE 632,279 556,526 657,968
Income From Property and Enterprise 169,985 103,625 195,330
Profits Pakistan Post Office 1,100 ( 140) (2,195)
Profits Pak. Telecom. Authority 50,000 0 75,000
Interest (Provinces) 16,638 18,508 15,638
Interest (PSEs & Others) 38,032 41,776 42,503
Dividends 64,215 43,481 64,384
Receipts from Civil Admn and Other Functions 332,250 302,640 321,383
General Administration 788 702 801
Surplus Profit of the SBP 185,000 185,000 200,000
Defence 133,463 115,296 118,739
Law and Order 1,733 761 866
Community Services 811 497 530
Social Services 10,455 384 447
Miscellaneous Receipts 130,044 150,261 141,255
Economic Services 2,402 2,213 2,388
Gas Development Surcharge 29,995 31,706 24,925
Discount Retained on Local Crude Oil 12,000 25,189 25,100
Royalty on Oil 15,500 19,605 15,183
Royalty on Gas 32,000 35,143 32,796
Passport and Citizenship Fees 10,850 10,700 13,750
Others 27,297 25,704 27,112

SHARE OF PROVINCES IN FEDERAL REVENUE RECEIPTS

CLASSIFICATION BUDGET 2010-11 REVISED 2010-11 BUDGET 2011-12
DIVISIBLE POOL TAXES
Income Tax 352,667 337,304 407,924
Capital Value Tax 2,645 2,493 0
Sales Tax excl. GST 328,630 330,398 437,404
Federal Excise (Net of Gas) 82,346 69,122 85,977
Customs Duties (excl. EDS) 99,490 95,348 112,627
Royalty on Crude Oil 15,037 19,213 14,879
Royalty on Natural Gas 29,439 34,440 32,140
Gas Development Surcharge (GDS) 27,061 31,072 24,427
Excise Duty on Natural Gas 7,144 12,326 15,359
GST on Services* 89,183 65,985 72,583
PROVINCE- WISE SHARE
Punjab 494,257 463,594 576,862
Sindh 279,630 277,878 324,409
Khyber Pakhtunkhwa ** 160,359 156,921 191,847
Balochistan 99,398 99,307 110,204
Total: 1,033,644 997,701 1,203,321
** Inclusive 1% War on Terror, * The indicative shares of GST on Services are strictly provisional at this stage. These shares would be revised and adjusted in the light of decision taken after discussions with the provinces.

SALIENT FEATURES OF THE BUDGET 2011-12

The total outlay of budget 2011-12 is Rs 2,767 billion. This size is 14.2% higher than the size of budget estimates 2010-11.

The resource availability during 2011-12 has been estimated at Rs 2,463 billion against Rs 2,256 billion in the budget estimates of 2010-11.

Net revenue receipts for 2011-12 have been estimated at Rs 1,529 billion indicating an increase of 11% over the budget estimates of 2010-11.

The provincial share in federal revenue receipts is estimated at Rs 1,203 billion during 2011-12 which is 16.4% higher than the budget estimates for 2010-11.

The capital receipts (net) for 2011-12 have been estimated at Rs 396 billion against the budget estimates of Rs 325 billion in 2010-11 i.e. an increase of

11%.

The external receipts in 2011-12 are estimated at Rs 414 billion. This shows an increase of 7.1% over the budget estimates for 2010-11.

The overall expenditure during 2011-12 has been estimated at Rs 2,767 billion of which the current expenditure is Rs 2,315 billion and development expenditure at Rs 452 billion. Current expenditure shows an increase of less than 1% over the revised estimates of 2010-11, while development expenditure will increase by 64.4% in 2011-12 over the revised estimates of 2010-11.

The share of current expenditure in total budgetary outlay for 2011-12 is 83.7% as compared to 89.7% in revised estimates for 2010-11.

The expenditure on General Public Services (inclusive of debt servicing transfer payments and superannuation allowance) is estimated at Rs 1,660 billion which is 71.1% of the current expenditure.

The size of Public Sector Development Programme (PSDP) for 2011-12 is Rs 730 billion. While for Other Development Expenditure an amount of Rs 97 billion has been allocated. The PSDP shows an increase of 58% over the revised estimates 2010-11.

The provinces have been allocated an amount of Rs 430 billion for budget estimates 2011-12 in their PSDP as against Rs 373 billion in 2010-11.

An amount of Rs 10 billion has been allocated to arthquake Reconstruction and Rehabilitation Authority (ERRA) in the PSDP 2011-12.