Role of Various Entities in Budget preparation, review, authorization and oversight

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Role of Various Entities in Budget preparation, review, authorization and oversight

Different forums at different level play a crucial role in carefully reviewing, scrutinizing, rationalizing and then finalizing the budgetary estimates; role of such forums is briefly described in the following tables:

Budget Preparing Entities
Line Ministry – Drawing & Disbursing Officer (DDO)
  • Prepare estimates of expenditures in accordance with the budget ceilings
  • Prepare estimates of receipts
  • Formulate detailed operational plans
  • Determine service delivery targets for next year
Line Ministry – Controlling Officer
  • Receive, Review, consolidate the estimates of Receipts and expenditures from DDOs under his jurisdiction
  • Submission of consolidated budgetary estimates to the Ministry / Division
  • Communication of budget ceilings and other policy decisions to subordinate DDOs
Line Ministry – Principal Accounting Officer (PAO)
  • Strategic guidance on budget planning and prioritization
  • Communication of budget ceilings to DDO’s / spending entities
  • Collation of estimates of receipts and expenditure
  • Communication and distribution of budget grants to all concerned in the Ministry / Division
  • Budget control

Budget Review & Approving Forums

Budget Review & Approving Forums
Line Ministries
  • Managing the sectors / functions assigned to them under the rules of business
  • Plan and prioritize their expenditure according to their respective ministerial policies.
Ministry of Finance
(Financial Advisor / Deputy Financial Advisor)
  • Review budget demands from line ministries in light of budget ceilings provided for current budget
  • Where required, make necessary cuts, adjustments, revisions in budget demands (against each budget head separately)
  • Review budget demands for new expenditure (New Item Statement) and propose any changes
  • Review budget demands against any new budget head(s)
  • Raise queries about any missing / incomplete information and call upon the line ministry to remove any shortcoming
  • Ask for any additional information / justifications for the budget demands
  • Carry out necessary analysis / assessments of the budget demands and see if the same fit into the overall expenditure framework
Pre-priorities Committee
  • Discuss budget demands in light of budget ceilings
  • Analyze budget demands in relation to actual expenditure during last 8 months
  • Recommend budget demands for discussion at Priorities Committee
Priorities Committee
  • Discuss budget demands further particularly in context of outputs/outcomes for each line ministry
  • Discuss any new funding required (NIS, etc.)
  • Recommend budget demands for discussion at APCC (Annual Plan Coordination Committee)
Planning Commission
(Sector Chief)
  • Issue development budget ceilings to the line ministries at the commencement of budget cycle
  • Review draft PSDP submissions from the line ministries in light of budget ceilings provided
  • Carry out reviews / analysis of the budget demands
  • Finalize development proposals for consideration before the National Economic Council (NEC)
Annual Plan Coordination Committee (APCC)
  • Discuss and agree current budget ceilings
  • Discuss PSDP ceilings and any new development initiatives and their expected funding levels
  • Recommend PSDP for final approval at NEC
National Economic Council (NEC)
  • Discuss overall economic /fiscal performance
  • Discuss national PSDP (federal and provincial)
  • Discuss performance of large / national programs and any funding constraints
  • Agree overall ceilings for PSDP
Federal Cabinet
  • Discuss budget proposals (receipts & expenditure)
  • Discuss and approve various policy measures in relation to the budget
  • Approve budget demands for laying before the National Assembly
National Assembly
  • Hold general discussions on the budget
  • Hold discussion on appropriations (expenditure charged upon the consolidated fund)
  • Hold discussions and voting on demand for grants
  • Discuss cut motions (disapproval of policy cut, economy cut and token cut)
  • Approve schedule of authorized expenditure

Budget Oversight Authorities

Budget Oversight Authorities
Auditor General of Pakistan
  • Strengthening the legislative oversight by providing an independent and objective assessment of the process of governance both at the federal and provincial levels. Keep / maintain the accounts of the Federation and of the Provinces in such form and in accordance with such principles and methods as he may, with the approval of the President, prescribe
  • Carry out audit of the accounts of the Federal and of the Provincial
    Governments and the accounts of any authority or body established by the Federal or Provincial Government
  • Determine the extent and nature of audit of accounts of the Federal and Provincial Governments
  • Submit audit report on accounts / finances of the Federation to the President of Pakistan
Public Accounts Committee
  • Examine the statement of accounts showing the income and expenditure of state corporations, trading and manufacturing schemes, concerns and projects;
  • Examine the statement of accounts showing the income and expenditure of state corporations, trading and manufacturing schemes (including autonomous and semi-autonomous bodies);
  • Consider the report of the Auditor-General;
  • In scrutinizing the appropriation accounts and the reports of the Auditor General, the committee satisfy itself to:
    • The money shown was legally available to the service it was provided for
    • Expenditure conforms to the authority which governs it
    • Re-appropriation has been in accordance with the provisions framed by MoF
  • Examine any funds spent in excess of the amount granted by the Assembly and make appropriate recommendations

Budget Accounting and Reporting Entities / Authorities

Budget accounting and reporting entities / authorities
Controller General of Accounts (CGA) Key functions of Controller General of Accounts as envisaged in CGA Ordinance 2001 are to:

  • Prepare and maintain the accounts of federation and provinces and district governments.
  • Authorize payments and withdrawals from the Consolidated Fund and Public Accounts of the Federal and Provincial governments
  • Formulate the principles governing the internal financial control for government departments.
  • Provide advice on accounting procedure for new schemes, programs or activities undertaken by the Government concerned.
  • Provide the information required by the Federal, Provincial or District Governments (in so far as accounts compiled permit).
  • Develop and maintain an efficient system of pension, provident funds and other recruitment benefits.
Accountant General Pakistan Revenues Key functions, role and responsibilities of the Accountant General Pakistan Revenues (AGPR) are summarized below:

  • Responsibility for centralized accounting and reporting of federal transactions;
  • Responsibility for the consolidation of summarized financial information prepared by federal self-accounting entities
  • Receiving, analyzing, consolidating accounts and reports from the DAOs, PAOs, Federal Treasuries and SBP/NBP
  • Provide Annual Accounts to Auditor General of Pakistan and Consolidated Monthly Accounts (to the Federal Finance Division)
  • Monitoring the working / functions of AGPR sub-offices in each of the Provinces who also act as the DAO in respect of Federal Government transactions relevant to the Provincial Headquarters
  • Reporting to the Controller General of Accounts (who is the administrative head of the AGPR).