IV. Public policy & planning institutions

Finance Division, Cabinet Division and federal ministries

Managing money, cabinet business and sectoral policy

Policy institutions

The Finance Division manages public finances and prepares the budget; the Cabinet Division serves as the Cabinet's secretariat; and federal ministries formulate and implement policy in their respective sectors.

The Finance Division

Prepares the annual budget (the Annual Budget Statement, Article 80) and presents it to the National Assembly.
Manages the Federal Consolidated Fund and public accounts.
Controls government expenditure and releases funds to ministries.
Manages public debt through its Debt Management Office.
Negotiates with the IMF, World Bank and other lenders.
Oversees the medium-term budgetary framework, under which ministries' spending ceilings are set for three years.
Revenue collection is handled by the Federal Board of Revenue under the Revenue Division.

The NFC Award

Under Article 160, the National Finance Commission recommends how federal tax revenues are shared between the federation and provinces. The 7th NFC Award (2010) increased the provinces' share to 57.5% and distributed it among provinces by population (82%), poverty and backwardness (10.3%), revenue collection and generation (5%), and inverse population density (2.7%).

The Cabinet Division

Acts as the secretariat of the Federal Cabinet and its committees.
Prepares the agenda, records and circulates minutes, and monitors implementation of cabinet decisions.
Administers the Rules of Business, 1973, including the allocation of business among divisions.
Headed by the Cabinet Secretary, the senior-most civil servant.
Several attached bodies work under it.

Federal ministries

Each ministry has a minister as political head and a secretary as administrative head and Principal Accounting Officer.
Ministries formulate policy, prepare laws, and oversee attached departments and autonomous bodies.
Subjects are listed in the Federal Legislative List (Fourth Schedule).
After the 18th Amendment, ministries such as education, health and local government were devolved to the provinces, while federal ministries now handle coordination and international obligations.

Conclusion

Sound financial management, efficient cabinet business and capable ministries together determine whether policies are funded, decided and implemented effectively.

The Finance Division

Prepares the annual budget (the Annual Budget Statement, Article 80) and presents it to the National Assembly.

Manages the Federal Consolidated Fund and public accounts.

Controls government expenditure and releases funds to ministries.

Manages public debt through its Debt Management Office.

Negotiates with the IMF, World Bank and other lenders.

Oversees the medium-term budgetary framework, under which ministries' spending ceilings are set for three years.

Revenue collection is handled by the Federal Board of Revenue under the Revenue Division.

The NFC Award

The Cabinet Division

Acts as the secretariat of the Federal Cabinet and its committees.

Prepares the agenda, records and circulates minutes, and monitors implementation of cabinet decisions.

Administers the Rules of Business, 1973, including the allocation of business among divisions.

Headed by the Cabinet Secretary, the senior-most civil servant.

Several attached bodies work under it.

Federal ministries

Each ministry has a minister as political head and a secretary as administrative head and Principal Accounting Officer.

Ministries formulate policy, prepare laws, and oversee attached departments and autonomous bodies.

Subjects are listed in the Federal Legislative List (Fourth Schedule).

After the 18th Amendment, ministries such as education, health and local government were devolved to the provinces, while federal ministries now handle coordination and international obligations.