Q-42= Define budget and explain the main sources of revenue budget
WHAT IS BUDGET?
Budget is an annual statement of expenditures and revenues of the federal government,
which is prepared by Ministry of Finance in consultation with other government
departments, Planning commission, and the provincial governments. After preparation
the budget is presented in the National Assembly for discussion and approval. The main
aim of the budget is to finance the current expenditures of the Federal government such
as salaries to employees, maintenance of law and order situation, and to create infra
structure and to complete development schemes needed for economic development of the
country. It has two components, which are as under: -
1- REVENUE BUDGET
It covers revenue from direct and indirect taxes i.e. income tax, custom duty, excise duty,
and corporate tax etc. It is prepared with the consultation of provincial governments.
2. DEVELOPMENT BUDGET
It includes expenditures on the development programs i.e. construction of dams, roads,
railways and irrigation projects etc. Development budget is prepared in consultations with
provincial governments and Planning Commission of Pakistan, because Planning
Commission prepares the development projects.
MAIN SOURCES OF REVENUE BUDGET OF GOVT. OF PAKISTAN.
1. Tax revenue, CBR
2. Non- tax revenue
3. Net capital receipts
4. External Resources
5. Self-financing of PSDP by provinces
6. Change in Provincial cash balance
7. Privatization proceeds
8. Bank borrowing