LAHORE, Jan 24: The Punjab government will prepare its budget estimates for the financial year 2005-06 on the basis of the New Accounting Model (NAM).

Sources in the finance department told this reporter on Monday that NAM is being implemented for provincial departments (non-devolved departments) in the first phase.

The NAM has been developed by the auditor-general of Pakistan through the 'project to improve financial reporting and auditing' (PIFRA) and has already been approved by President Gen Pervez Musharraf for implementation throughout the country.

The finance department has already issued the budget call circular to the provincial departments in connection with the preparation of the budget estimates for the next fiscal year, informing them that the new budget would be prepared on the basis of NAM.