Provinces: fiscal year 2013 budgets estimated at Rs 1.668 trillion

Provincial budgets for 2012-13 have been estimated at Rs 1.668 trillion against Rs 1.286 trillion for the outgoing fiscal year, it has been learnt. Sources said that transfers to provinces from the divisible pool were estimated at Rs 1.503 trillion for the next fiscal year with revenue generation, both tax and non-tax, estimated at Rs 200 billion and Rs 75 billion, respectively, for 2012-13.
The provincial governments were estimated to give Rs 110 billion budget surplus for the next fiscal year. Sources said that after the finalisation of fiscal frameworks, provincial governments revised their current expenditure for the ongoing fiscal year to Rs 1,286 billion from the original estimate of Rs 1,386 billion for the current fiscal year.
The estimates of provincial budget surplus in the fiscal framework finalised by the ministry of finance have been revised to Rs 154 billion for the outgoing fiscal year against original estimates of Rs 124 billion. The provincial governments are estimated to receive Rs 217 billion more from the divisible pool in 2012-13 over figures for previous year. The provinces are also estimated to receive Rs 57 billion in grants.
An official of the finance ministry said the finance minister had been directed by the prime minister to improve the budget for the next fiscal year by making it in line with recommendations of coalition parties. The official said on condition of anonymity that Finance Minister Dr Abdul Hafeez Shiekh presided over a meeting of the economic team to formulate new budgetary proposals.
The agenda of the meeting convened after the conclusion of the Economic Co-ordination Committee (ECC) of the Cabinet was formulation of new budgetary proposals, contributory pension fund and investment in treasury bills at retail level. The government, he said, was considering the possibility to offer treasury bills at retail level from the platform of Central Directorate of National Saving Schemes (CDNSS). Sources said that officials of the finance ministry and Punjab government were also holding meetings to finalise financial arrangements for the provincial government to procure wheat and its impact on the budget for the next fiscal year. The meeting, sources said, also explored various options, including borrowing money by issuing treasury bonds to avert its impact on the budget.