Through the budget the Government announces its policy priorities. These priorities impact people of all walks of life. While on one hand the Government announces its plans to improve human development, on the other the budget provides an understanding of how the Government intends to shape up the economy. The budget provides an understanding of how the Government intends to facilitate a particular sector (e.g. education, telecom, automotive, etc.) to enhance growth, which is a key driver of employment. Federal Budget was presented in the Parliament on June 01, 2012. This paper, prepared specially for Parliamentarians, will serve as backgrounder to PILDAT Briefing Session on Understanding the Budget 2012-2013, scheduled at the start of the Budget Debate so as to equip MPs to make an effective and useful contribution while reviewing the Budget before its passage. This paper is authored by Mr. Nohman Ishtiaq, who is a public finance and management consultant with over 10 years of experience of advising national and sub-national governments.