Excess Demands for Grants and Appropriations

FEDERAL BUDGET 202 2 -2 3 EXCESS DEMANDS FOR GRANTS AND APPROPRIATIONS 2018-19 - 2020-21

Government of Pakistan Finance Division Islamabad

PREFACE

This book contains expenditure incurred by the Divisions / Departments from the Federal Consolidated Fund in excess of allocated budget under various Grants/ Appropriations, during the financial years 2018-19,2019-20 and 2020-21.

Article 84(b) of the Constitution, requires that the Excess Budget Statement is to be laid before the National Assembly in terms of provisions of Articles 80 to 83,which equally apply to the Annual Budget Statement. Furthermore,Section 25 of Public Finance Management Act, 2019 states that thePublic Accounts Committee recommends the excess expenditure to stand as charge to Federal Consolidated Fund. The PAC vide OM dated 6^th January, 2022 has directedFinance Division to get approval of the excess expenditure of all Divisions/Departments from the National Assembly without waiting of printed PAC Reports.

The details of the book on Excess Budget Statement are arranged in the following three parts: -

i) Demands for Current Expenditure, ii) Demands for Development Expenditure, and iii) Appropriations Charged upon the Federal Consolidated Fund

To facilitate quick cross referencing, the names of the Divisions have been arranged alphabetically and details of Excess Demands for Grants and Appropriations, under each Division. The Schedule appearing at the end lists the Excess Demands in running serial order, giving a further breakup of the expenditure by (i) sums required to meet Charged Expenditure and (ii) sums required to meet Voted Expenditure.

This time, the Excess Demands for Grants and Appropriations of three financial years are being laid in Parliament. This achievement is a result of devoted and consistent efforts by the Budget Wing especially by its Chief Accounts Officer and his team, which is highly appreciated.

HAMED YAQOOB SHEIKH

Secretary to the Government of Pakistan

Finance Division ,

Islamabad, the 10^th June, 2022

EXCESS DEMANDS FOR GRANTS AND APPROPRIATIONS 2019-2020 PAGES PART I. CURRENT EXPENDITURE :

A.-EXPENDITURE ON REVENUE ACCOUNT :

I - CABINET SECRETARIAT -

PAGES

EXCESS DEMANDS FOR GRANTS AND APPROPRIATIONS 2020-2021 PART I. CURRENT EXPENDITURE : A.-EXPENDITURE ON REVENUE ACCOUNT :

EXCESS DEMANDS FOR GRANTS AND APPROPRIATIONS 2018-2019

PART I.- CURRENT EXPENDITURE (A) EXPENDITURE ON REVENUE ACCOUNT

DEMAND NO.006

AIRPORTS SECURITY FORCE

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 010

FEDERAL PUBLIC SERVICE COMMISSION

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 011

OTHER EXPENDITURE OF ESTABLISHMENT DIVISION

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 025

FEDERAL GOVERNMENT EDUCATIONAL INSTITUTIONS IN CANTONMENTS AND GARRISONS

(Rs)

DEMAND NO. 026

DEFENCE SERVICES

(Rs)

The excess occurred due to depreciation of Pak. Rupee versus Dollar and grant of Adhoc Relief Allowance.

DEMAND NO. 032

FEDERAL EDUCATION AND PROFESSIONAL TRAINING DIVISION

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 38

SUPERANNUATION ALLOWANCES AND

PENSIONS

(Rs)

The excess occurred due to increase on commuted portion of pension to all those pensioners retired on or after 01-122001, increase in pension @10 of net pension to all Federal Government pensioners, pensionable emoluments of judges have been revised and increase in the number of pensioners.

DEMAND NO. 049

OTHER EXPENDITURE OF FOREIGN AFFAIRS DIVISION

(Rs)

The excess occurred due to depreciation Pak. Rupee versus Dollar and other International Currencies. The prices of air passage increased owing to ban on airspace by India and Pakistan. Moreover, excess due to clearance of some pending liabilities i.e. contributions to Peace Keeping Forces, UN Regular Budget, ECO etc.

DEMAND NO. 052

ESTATE OFFICES

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 066

ISLAMABAD

(Rs)

DEMAND NO. 068

CIVIL ARMED FORCES

(Rs)

DEMAND NO. 069

FRONTIER CONSTABULARY

(Rs)

The excess occurred under employees related expenses, which was obligatory in nature.

DEMAND NO. 070

PAKISTAN COAST GUARDS

(Rs)

The excess occurred under employees related expenses, which was obligatory in nature.

DEMAND NO. 081

NATIONAL ACCOUNTABILITY BUREAU

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 083

NARCOTICS CONTROL DIVISION

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 092

PAKISTAN POST OFFICE DEPARTMENT

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 094

PAKISTAN RAILWAYS

(Rs)

The excess occurred due to devaluation of Pak. Rupee and fuel prices raised. Moreover, Adhoc Relief Allowance was allowed by Federal Government.

DEMAND NO. 096

OTHER EXPENDITURE OF RELIGIOUS AFFAIRS AND INTER FAITH HARMONY DIVISION

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 100

FRONTIER REGIONS

(Rs)

The excess occurred under employees related expenses, which was obligatory in nature.

DEMAND NO. 101

FEDERALLY ADMINISTERED TRIBAL AREAS

(Rs)

The excess occurred under employees related expenses, which was obligatory in nature.

PART II. DEVELOPMENT EXPENDITURE

(A) DEVELOPMENT EXPENDITURE ON RVENUE ACCOUNT

DEMAND NO. 112

DEVELOPMENT EXPENDITURE OF SUPARCO

(Rs)

The excess occurred due to avoid substantial late payment charges (@ 4.6% per annum) against overdue invoices, drawdown notices amounting to US$ 122.135 million were issued through EAD to EXIM Bank, China for payment to contractor through Chinese Concessional Loan without foreign loan allocation.

DEMAND NO. 124-A

DEVELOPMENT EXPENDITURE OF ECONOMIC AFFAIRS DIVISION

OUTSIDE PSDP

(Rs)

The excess occurred due to agreement signed by EAD and NBP, EAD has to reimburse the amount paid to project beneficiaries by NBP within 3 days. Delay in payment to NBP can cause liquidity issues at the bank which ultimately disrupts beneficiary payments at 15 TDP-ERP sites established in erstwhile FATA. While delay in payment of grant amount to project beneficiaries may subsequently result in untoward situation at sites. Hence, EAD has to maintain uninterrupted payments pace.

DEMAND NO. 125 DEVELOPMENT EXPENDITURE OF REVENUE DIVISION

(Rs)

The excess occurred by a foreign funded project titled "Development of Integrated Transit Trade Management System (ITTMS) under ADB Loan No.3344-PAK. ADB disbursed additional funds of Rs 1,899 million under foreign component directly to the contractors as per their standard procedure and reported to EAD, which booked the figure in SAP under loan No.3344-PAK. During the year, ADB declared this Project as Red-flagged due to delay in completion of engineering design and land acquisition at site and pressed for contract award by end December 2018 to avoid stoppage of donor funding and commitment charges for non-withdrawal of the allocated Foreign Component. Project Management swiftly finalized the contracts and the payment was proportionally made as per the agreed arrangements with ADB i.e. 91% via direct payment from ADB share and 9% through AGPR Govt. of Pakistan share.

(B) DEVELOPMENT EXPENDITURE ON CAPITAL ACCOUNT

DEMAND NO. 142

CAPITAL OUTLAY ON DEVELOPMENT OF

ATOMIC ENERGY

(Rs)

The excess occurred due to booking of Foreign Aid/Loan directly disbursed by EXIM Bank, China to PAEC for construction of K-2/K-3 projects. Since, loan is the liability of PAEC therefore, it was not the part of PSDP allocation.

DEMAND NO. 146

EXTERNAL DEVELOPMENT LOANS AND ADVANCES BY THE FEDERAL GOVERNMENT (Rs)

The excess occurred due to fluctuation of exchange rate, disbursement closing dates, likelihood of new commitments. The department explained that the actual expenditure shown in the appropriation account was in fact no physical expenditure incurred by EAD. This was the accounting impact of the amount disbursement and transferred by the donor to the Executing Agencies against the loan amount.

PART III. APPROPRIATIONS CHARGED UPON THE FEDERAL CONSOLIDATED FUND

APPROPRIATION SERVICING OF DOMESTIC DEBT

(Rs)

The excess is mainly due to (i) the budget preparation time the SBP policy rate was 06.00 percent and debt servicing was calculated on the basis of that policy rate but then the SBP increased policy rate upto 12.25 percent, due to which payment of Debt Servicing was increased, (ii) the Government borrowed more debt for financing through short-term MRTBs and resultantly, paid more interest than the estimated and (iii) Un-matured amount for Rs 7,756,000,000,000 of MRTBs was re-profile on 30th June, 2019 as per direction of Finance Division, due to which, excess amount Rs 295,730,639,664 in shape of servicing was made by the SBP on 30th June, 2019, this was not included in BE as well as in RE for FY 2018-19.

APPROPRIATION

REPAYMENT OF DOMESTIC DEBT

(Rs)

The excess is mainly due to (i) retirement of more debt than anticipated and (ii) Rs 7,756,000,000,000 of MRTBs was re-profile on 30th June, 2019 as per direction of Finance Division, due to which, excess amount Rs 295,730,639,664 in shape of servicing was made by the SBP on 30th June, 2019, this was not included in BE as well as in RE for FY 2018-19.

APPROPRIATION SERVICING OF FOREIGN DEBT_ _(Rs)

The excess occurred due to depreciation in Pak. Rupee value as compared with US dollar.

APPROPRIATION FOREIGN LOANS REPAYMENT_ _(Rs)

The excess occurred due to depreciation in Pak. Rupee value as compared with US dollar.

SCHEDULE - I SCHEDULE OF EXCESS DEMANDS FOR GRANTS AND APPROPRIATIONS FOR THE FINANCIAL YEAR 2018 - 2019

SCHEDULE - I

EXCESS DEMANDS FOR GRANTS AND APPROPRIATIONS 2019-2020

PART I.- CURRENT EXPENDITURE

(A) EXPENDITURE ON REVENUE ACCOUNT

DEMAND NO. 006 AIRPORTS SECURITY FORCE

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 007 METEOROLOGY

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 021 COMMUNICATIONS DIVISION

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 023 DEFENCE DIVISION

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 025

FEDERAL GOVERNMET EDUCATIONAL INSTITUTIONS IN CANTONMENTS

AND GARRISONS (Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 026 DEFENCE SERVICES (Rs)

The excess occurred due to depreciation of Pak. Rupee versus Dollar and grant of Adhoc Relief Allowance.

DEMAND NO. 027 DEFENCE PRODUCTION DIVISION

(Rs)

The excess occurred due to debited by Air HQ through CMA (DP) in connection with Rate Running contract for VVIP Gulf Stream Aircraft.

DEMAND NO. 035

CONTROLLER GENERAL OF ACCOUNTS

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 053 ESTATE OFFICES

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 055 HUMAN RIGHTS DIVISION

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 069

CIVIL ARMED FORCES

(Rs)

The excess occurred under employees related expenses, which was obligatory in nature.

DEMAND NO. 072 PAKISTAN RANGERS

(Rs)

The excess occurred under employees related expenses, due to grant of Adhoc Relief Allowance to employees.

DEMAND NO.079

OTHER EXPENDITURE OF

LAW AND JUSTICE DIVISION

(Rs)

DEMAND NO. 080

COUNCIL OF ISLAMIC IDEOLOGY

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 081

DISTRICT JUDICIARY

ISLAMABAD CAPITAL TERRITORY

(Rs)

DEMAND NO. 084

NARCOTICS CONTROL DIVISION

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 093

PAKISTAN POST OFFICE DEPARTMENT

(Rs)

DEMAND NO. 095 PAKISTAN RAILWAYS

(Rs)

The excess occurred due to devaluation of Pak. Rupees. Resultantly, the fuel prices raised. Moreover, 10% Adhoc Relief Allowance was allowed by FG.

DEMAND NO. 101 FRONTIER REGIONS

(Rs)

DEMAND NO. 104 WATER RESOURCES DIVISION

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

(B) CURRENT EXPENDITURE ON CAPITAL ACCOUNT

DEMAND NO. 106 OTHER LOANS AND ADVANCES BY THE FEDERAL GOVERNMENT

(Rs)

A new mechanism for facility of ways & means advances to provinces introduced and a tripartite agreement was signed on 29-062020. Government of Khyber Pakhtunkhwa availed ways & means advances facility on 30-06-2020 and SBP pursuant to provision of tripartite agreement debited Federal Government Account with Rs 12,200.00 million on 30-06-2020.

PART III. APPROPRIATIONS CHARGED UPON THE FEDERAL CONSOLIDATED FUND

APPROPRIATION FOREIGN LOANS REPAYMENT_ _(Rs)

The excess occurred due to fluctuation of exchange rate and repayment of principal loans.

APPROPRIATION REPAYMENT OF SHORT TERM FOREIGN CREDITS_ _(Rs)

The excess pertains to multiple loans. There are several factors which affect the budget execution like payment of foreign loans and interest thereon in multiple base currencies, LIBOR rate, inter currencies exchange rate. Moreover, appreciation of dollar foreign currencies also carried excess expenditure. It is further clarified that in the last month of the year i.e. June, 2020 heavy repayments of approx. Rs 22 billion were made which could not be budgeted as the disbursements of these loans were received in the month of June, 2019 and this was not known at the time of preparation of budget estimates 2019-20.

APPROPRIATION

ISLAMABAD HIGH COURT_ _(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

SCHEDULE - I SCHEDULE OF EXCESS DEMANDS FOR GRANTS AND APPROPRIATIONS FOR THE FINANCIAL YEAR 2019 - 2020

SCHEDULE - I

EXCESS DEMANDS FOR GRANTS AND APPROPRIATIONS 2020-2021

PART I.- CURRENT EXPENDITURE (A) EXPENDITURE ON REVENUE ACCOUNT

DEMAND NO. 005

EMERGENCY RELIEF AND PREPATRIATION

(Rs)

The excess occurred due to twice booking of Rs 1.578 million erroneously.

DEMAND NO. 017 AIRPORTS SECURITY FORCE (Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 018 METEOROLOGY

(Rs)

The excess occurred under employees related expenses due to grant of Adhoc Relief Allowance to employees.

DEMAND NO. 036

PAKISTAN POST OFFICE DEPARTMENT

(Rs)

The excess occurred due to grant of Disparity Reduction Allowance, Adhoc Relief Allowance for the year and Pension expenditure more than the budget estimates.