Budget is an essential element in the planning and control of the financial affairs of a country. It is a complex document that takes several months to prepare. The federal budget sets out estimates of federal government expenditure and revenue for the fiscal year and is normally presented by the Finance Minister to the National Assembly. The Finance Minister reviews economic conditions of the country and makes forecasts for revenue and expenditure for the coming year and announces proposed changes in taxation. These changes normally become effective immediately, but are subject to parliamentary debate and approval in the Finance Bill. With the increasing importance of government expenditure and resource mobilization, the annual budget is an important instrument in government economic policy making to address the prevailing economic challenges. Thus, the country’s budget is always prepared at the background of domestic and external economic challenges. The newly appointed Finance Minister Senator Dr. Abdul Hafeez Shaikh has presented his first and this government’s third Federal Budget (2010-11) in the National Assembly on June 5, 2010. This paper, authored by Dr. Ashfaque H. Khan, Dean & Professor, NUST Business School, Islamabad, is an attempt to provide a concise, succinct and objective overview of the Federal Budget 2010-2011 with a view to assisting the Members of the Parliament in understanding the budget and making the budget debate more meaningful, productive and constructive. This paper is published by PILDAT under the Parliamentary and Political Party Strengthening Project which is funded by Canada’s Department of Foreign Affairs and International Trade (DFAIT) and is implemented jointly by the Parliamentary Centre, Canada and PILDAT.