by Muhammad Mohsin Iqbal
The budget process in the National Assembly of Pakistan is a cornerstone of the country’s fiscal governance, delineating the government’s economic priorities, revenue generation strategies, and expenditure plans for the fiscal year. This intricate process involves multiple steps, ensuring comprehensive scrutiny and parliamentary approval.
The budget process commences with the Ministry of Finance preparing a draft budget. This phase entails consultations with various ministries, departments, and stakeholders. The ministry aggregates data on projected revenues and expenditures, aligning them with the government’s policy priorities. This draft budget is then presented to the National Assembly by the Finance Minister, typically in June. The presentation includes the Finance Bill, which outlines the proposed taxation and financial regulations.
Following the presentation, a general discussion on the budget ensues. Members of the National Assembly debate the overall budgetary proposals, allowing them to express their views on the government’s fiscal policies. Subsequently, the Assembly votes on the demands for grants, involving detailed discussions on each ministry’s proposed budget followed by a vote. Only expenditures approved by the Assembly are included in the final budget.
The Finance Bill, which encapsulates the government’s taxation proposals, is also debated and voted upon separately. The Assembly’s approval of this bill is essential for the budget’s implementation. While the Senate of Pakistan lacks the authority to amend the budget, it reviews and provides non-binding recommendations considered by the National Assembly. Once the National Assembly approves the budget and the Finance Bill, they are sent to the President of Pakistan for formal assent, after which they become law.
For the Federal Budget 2024-2025, though presented on June 12, 2024, the debate began on June 20 and is expected to continue till June 24. The Finance Minister will conclude the budget debate on June 25. Cut motions will be tabled on June 26 and 27, followed by passage of the Finance Bill on June 28. Finally, on June 29, the budget will be phased in with supplementary grants completing the process in 10 days.
From 2002 to 2023, Pakistan’s federal budgets have reflected changing economic realities, political priorities, and global influences. The early 2000s saw Pakistan grappling with economic challenges, including high debt levels and inflation. The budgets during this period focused on economic stabilization, debt reduction, and poverty alleviation. Development spending was prioritized to stimulate growth. The period from 2008 to 2013 was marked by political instability and economic uncertainty. Budgets reflected an emphasis on social welfare programs, subsidies, and efforts to address energy shortages. However, fiscal deficits remained a significant concern.
Between 2013 and 2018, the budgets aimed at economic reforms, infrastructure development, and energy sector improvements. The China-Pakistan Economic Corridor (CPEC) projects were a major focus, with substantial allocations for infrastructure and energy projects. Recent budgets from 2018 to 2023 have faced the dual challenge of economic recovery post-COVID-19 and managing debt sustainability. There has been a focus on digital economy initiatives, social safety nets, and improving tax collection mechanisms. Fiscal discipline and austerity measures have also been highlighted to manage the budget deficit.
Historically, the time and participation in the budget process have varied. In the Federal Budget 2003-2004, the process spanned eight days, with 48 members participating and consuming 9 hours and 40 minutes. In the Federal Budget 2004-2005, the process extended to 12 days with 191 members, 73 belong to government side whereas 118 from opposition benches. Total time 45 hours 32 minutes were consumed, 17 hours 44 minutes from government side and 27hours 48 minutes from opposition.
The Federal Budget 2005-2006 saw an 11-day process with 132 members, 44 belong to government side whereas 88 from opposition benches were participated in budget discussion. Total time 34 hours 15 minutes were consumed, 12hours 48 minutes from government and 21 hours 27 minutes from opposition. The following year, the 2006-2007 budget took 15 days, involving 183 members were participated in budget discussion. 74 MNAs belong to government whereas 109 members from opposition benches, consuming 45 hours and 50 minutes total time, 22 hours 36 minutes from government side and 33 hours 14 minutes from opposition.
In Federal Budget 2007- 08, 13 days were consumed on budget process. 187members were participated in budget discussion. 77 belong to government side whereas 110 from opposition benches. Total time 45 hours 22 minutes were consumed, 18 hours 43 minutes from government side and 26 hours 39 minutes from opposition. In Federal Budget 2008- 09, 11days were consumed on budget process. 229 members were participated in budget discussion. 166 belong to government side whereas 63 from opposition benches. Total time 41 hours 46 minutes were consumed, 27 hours 40 minutes from government side and 44 hours 6 minutes from opposition.
In Federal Budget 2009- 10, 10 days were consumed on budget process. 170 members were participated in budget discussion. 96 belong to government side whereas 74 from opposition benches. Total time 39 hours 53 minutes were consumed, 22 hours 07 minutes from government side and 27 hours 46 minutes from opposition. In Federal Budget 2010- 11, 16 days were consumed on budget process. 161members were participated in budget discussion. 86 belong to government side whereas 75 from opposition benches. Total time 40 hours 01 minutes were consumed, 19 hours 36 minutes from government side and 20 hours 25 minutes from opposition.
In Federal Budget 2011- 12, 17 days were consumed on budget process. 139members were participated in budget discussion. 80 belong to government side whereas 59 from opposition benches. Total time 34 hours 42 minutes were consumed, 19 hours 23 minutes from government side and 15 hours 19 minutes from opposition. In Federal Budget 2012- 13, 10 days were consumed on budget process. 29members were participated in budget discussion. 27 belong to government side whereas 2 from opposition benches. Total time 14 hours 12 minutes were consumed, 10 hours 35 minutes from government side and 3 hours 37 minutes from opposition.
In Federal Budget 2013- 14, 13 days were consumed on budget process. 135members were participated in budget discussion. 62 belong to government side whereas 73 from opposition benches. Total time 33 hours 03 minutes were consumed, 13 hours 42 minutes from government side and 19 hours 21 minutes from opposition. In Federal Budget 2014- 15, 14 days were consumed on budget process. 122 members were participated in budget discussion. 51 belong to government side whereas 71 from opposition benches. Total time 37 hours 54 minutes were consumed, 15 hours 24 minutes from government side and 22 hours 30 minutes from opposition.
In Federal Budget 2015- 16, 12 days were consumed on budget process. 163members were participated in budget discussion. 86 belong to government side whereas 77 from opposition benches. Total time 40 hours were consumed, 21 hours 15 minutes from government side and 18 hours 45 minutes from opposition. In Federal Budget 2016- 17, 16 days were consumed on budget process. 155members were participated in budget discussion. 82 belong to government side whereas 73 from opposition benches. Total time 39 hours 15 minutes were consumed, 18 hours 22 minutes from government side and 20 hours 53 minutes from opposition.
In Federal Budget 2017- 18, 10 days were consumed on budget process. 84members were participated in budget discussion. 70 belong to government side whereas 14 from opposition benches. Total time 19 hours 48 minutes were consumed, 14 hours from government side and 5 hours 48 minutes from opposition. In Federal Budget 2018- 19, 8 days were consumed on budget process. 92members were participated in budget discussion. 38 belong to government side whereas 54 from opposition benches. Total time 23 hours 46 minutes were consumed, 8 hours 38 minutes from government side and 15 hours 08 minutes from opposition.
In Federal Budget 2019- 20, 15 days were consumed on budget process. 224 members were participated in budget discussion. 123 belong to government side whereas 101 from opposition benches. Total time 58 hours were consumed, 29 hours 54 minutes from government side and 28 hours 06 minutes from opposition. In Federal Budget 2020- 21, 15 days were consumed on budget process. 208members were participated in budget discussion. 107 belong to government side whereas 101 from opposition benches. Total time 57 hours 08 minutes were consumed, 27 hours 55 minutes from government side and 29 hours 13 minutes from opposition.
In Federal Budget 2021- 22, 10 days were consumed on budget process. 244members were participated in budget discussion. 122 belong to government side whereas 122 from opposition benches. Total time 69 hours 05 minutes were consumed, 33 hours 57 minutes from government side and 35 hours 08 minutes from opposition. In Federal Budget 2022- 23, 10 days were consumed on budget process. 76 members were participated in budget discussion. 63 belong to government side whereas 13 from opposition benches. Total time 24 hours 21 minutes were consumed, 19 hours 48 minutes from government side and 4 hours 33 minutes from opposition. In Federal Budget 2023- 24, 11 days were consumed on budget process. 160members were participated in budget discussion. Total time 19 hours 54 minutes were consumed.
Each year’s budget process reflects the dynamic interplay between government and opposition, the complexity of fiscal planning, and the legislative scrutiny necessary for fiscal governance. The meticulous nature of this process underscores the importance of transparency, accountability, and thorough debate in shaping the nation’s economic future.
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