PAKISTAN-PERFORMANCE BASED BUDGET 2020-21 TO 2022-23

This document has been prepared to comply with the requirement laid down in Section 6 of Public Finance Management Act, 2019. The medium-term Performance Based Budget which is referred to as the “Green Book” is an endeavor to specify the purposes i.e. output and outcomes expected to be achieved with funds appropriated by Parliament. The Green Book provides supplementary information to the details of Demands for Grants and Appropriations, which set out the details of the Budget by accounting Budget line according to the functional and object classifications of the Chart of Accounts. The key elements are three-year framework for budgetary planning which lies at the heart of the MTBF reforms. Under this process ministries make their plans and prepare budgetary estimates for a rolling 3-year budgetary horizon. This includes the 2020-21 estimates, which are to be appropriated by Parliament, and two additional or “outer” years estimates (in this case 2021-22 and 2022-23) for planning purposes.

Breakdown of each Ministry’s Budget by “Outputs”. Outputs represent major lines of service delivery of each ministry. Each ministry identifies its main lines of service delivery and the costs associated with the delivery of each main line of service, down to the level of the individual spending unit. This would enable Parliament and other stakeholders to assess whether value for money in terms of delivery of services is being achieved.  Linkage of service delivery with total budgetary allocations for each Ministry / Division (current and development). As the government budget is divided between the recurrent budget and development budget, the delivery of outputs and outcomes requires a combination of allocations through the recurrent budget to meet the operations costs and development budget to meet cost of expansion of access to services or improvement of the future quality of public services.