ISLAMABAD - A parliamentary committee on Monday has recommended the government to present only four months budget, as announcing full year’s budget is prerogative of the new government.
The National Assembly Standing Committee on Finance and Revenue which met under the chair of Qaiser Ahmed Sheikh has noted that government would present the pro-people budget before the general elections. Therefore, the committee has suggested presenting only four months budget as according to the Constitution.
The committee members’ even chairman who hails from PML-N has asked the government to leave the full year’s budget for the next government. The committee members also expressed concerns over the recent amnesty scheme.
The PML-N government had already announced that annual budget for next fiscal year 2018-19 would be presented on April 27 (Friday).
The National Economic Council (NEC) under the chairmanship of Prime Minister Shahid Khaqan Abbasi would approve the development budget and macroeconomic framework for the next fiscal year.
A committee member Asad Umar of PTI said that there is a provision in the Constitution that government could announce the four months budget-for the interim government.
“Why the new government will follow and implement the old budget. The new government should present the budget as according to its election manifesto,” he added.
Abdul Rasheed Godil of MQM said that announcing budget before general elections could be pre-poll rigging.
The government could give massive increase in salaries of civil servants, which never announced in last five years.
He also criticised the government for announcing tax amnesty scheme by saying it is injustice with the honest taxpayers of the country. The government had announced tax amnesty scheme for its election campaign.
Another committee member Dr Nafeesa Shah of PPP also recommended the government to announce four months budget.
She said that government had given tax amnesty scheme and reducing income tax rates, which was not their prerogative when their tenure is about to complete. She said that government has taken wrong decision.
The committee chairman Qaiser Ahmed Sheikh also recommended the government to present four to six months budget. “The new government should be given a chance to announce the budget as according to their priority,” he added.
However, committee members Sheikh Fayyazuddin and Arifa Khalid Parvez said that government should present the full year’s budget.
Minister of State for Finance Rana Afzal Khan said that government would present the budget for the entire year.
“How can we allocate budget for defence, interest payment and increase civil servants salaries for only four months”.
He further said that Prime Minister Shahid Khaqan Abbasi would finalize the budget contours on Monday evening.
He said that budget is an international document that showed the picture of country’s economy.
“The next government is not bound to follow the targets fixed by incumbent government. They can bring change if they want,” the minister of state remarked.
Special Secretary Finance Noor Ahmed informed the committee that Pakistan’s GDP has provisionally recorded at 5.8 percent during ongoing financial year as against the target of 6 percent. “The final GDP growth can touch 6 percent if the manufacturing sector record healthy growth in next couple of month”.
He assured the committee that government would restrict the budget deficit at below 6 percent of the GDP due to impressive tax collection of Federal Board of Revenue (FBR).
He informed that inflation rate is under control. Ahmed said that external sector is facing real challenge, as the current account deficit would increase to 5 percent of the GDP during current fiscal year. He hoped that current account deficit would be controlled next year.
Asad Umar asked when the government will approach International Monetary Fund (IMF) for bailout package.
He further asked whether Rs525 billion circular debts, Rs400 tax refunds and Rs500 billion losses of public sector entities would be recognized in the next fiscal budget.
Special Secretary Finance replied that these would not be part of the budget.
The committee approved The Income Tax (amendment) bill [amendment of ordinance XLIX of 2001).
However, the committee rejected other two bills including the voluntary Declaration of Domestic Assets Bill 2018 and The Foreign Assets (Declaration and Repatriation) Bill 2018.