The Punjab Budget Manual essentially outlines the budget making process as enjoined by the Constitution. The Manual contains the instructions framed by the Government of the Punjab Finance Department for the guidance of Heads of Departments and Drawing and Disbursing / Collecting Officers in the preparation and examination of budget estimates and for subsequent control over expenditure to ensure that it is kept within the authorized grants.

The changes brought about over the years, especially due to the introduction of the New Accounting Model (NAM), and modern budgetary techniques like the Medium Term Budgetary Framework (MTBF) have been incorporated in this edition. The Devolution Plan leading to the decentralization of Administrative and Financial Authority has shifted the focus of centralized planning and budget making process. The local governments have become parallel partners in the annual exercise, making it necessary to revise and update the existing manual The Finance Department looks forward to important suggestions and analyses for making the document simple productive and practical.


1. The Punjab Budget Manual explains in detail the manner in which the Provincial Consolidated Fund and Public Account of the Province, as defined in Article 118 of the Constitution, should be managed and controlled. In terms of Section 120-F of the Punjab Local Government Ordinance, 2001, the division of the Provincial Consolidated Fund into Provincial Allocable Amount and Provincial Retained Amount under the Provincial Finance Commission Award also constitutes an important phase in the budget management process. The process of management, bifurcation and control consists of eight phases, which are explained in the following paragraphs.
1.2 Phase I. Preparation of the Budget: The estimated receipts into, and the estimated expenditure against, the Provincial Consolidated Fund for a financial year is assessed by the Finance Department in consultation with;
(i) the Disbursing Officers in the case of expenditure, and the Collecting Officers in the case of Receipts.;
(ii) the Controlling Officers;
(iii) the Regional Heads, where they exist, the Head of Departments, and the Administrative Departments; and
(iv) the Planning and Development Department, in the case of developmental expenditure.


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