Budget Making Process

Estimates of expenditure on permanent activities

Permanent Expenditure = current expenditure – (new expenditure + temporary expenditure + expenditure on work in progress)

The estimates of expenditure on permanent activities, and works in-progress, are prepared by the various estimating officers.

Provision of relevant document for expenditure estimation by Finance department to disbursing offices.

Provision of relevant document for expenditure estimation by Finance department to regional heads and the head of department.

Filling and scrutinizing of B.M.1 forms by disbursing offices and controlling offices respectively.

Consolidation of receipts by the head of department for budget estimates. Preparation of budget note which provide justification of all the expenditures. Forwarding budget note prepared by head of department to finance department. Scrutiny by the accountant/director general and accounts and then forward their remarks

to head of department. Finance department further scrutinize the forwarded estimates. Re-examination by the Finance department. Loan estimation by the head of the department Closing balance for the provincial government will be its credit.

Estimates of expenditure on continuing temporary activities

Current expenditure on temporary continuing activities + work in progress + developmental on-going schemes.

Proposals involving current expenditure on continuing temporary activities should be sent to the finance department by the concerned administrative department.

Examination of proposals by the social / economic services as well as local governance finance wings of the finance department and returned to the concerned department.

Approval by finance department leads to the administrative approval by the concerned departments.

Preparation of schedule and an explanatory memorandum by the head of the department Preparation of expenditure on work in progress. Proposals for expenditure on on-going development schemes should be sent to the

Finance Department. Proposals in respect of making, temporary posts, permanent, should be sent to the

Finance Department. The proposal for each item should be submitted separately. The Administrative Departments, generally, obtain separate clearance from the Finance

Department for each item of expenditure.