The budget process in Pakistan /

Mir Shai Mazar

Baloch
A budget is an estimate of income and expenditure for a set period of time. It also
reflects the countrys social, economic, fiscal and financial responsibilities. It tells
governments future policies for the country. It is also a starting point towards
generating economic activities throughout the fiscal year. The practice of
presenting budgets and fiscal policies to parliament was initiated by Sir Robert
Walpole as Chancellor of the Exchequer of United Kingdom.
A government budget is a government document presenting the governments
proposed revenues and spending for a financial year that is often passed by
legislatures, approved by the chief executive or president and presented by the
finance minister to the nation. The budget is also known as the Annual Financial
Statement of the country. This document estimates the anticipated revenues and
expenditures of the government for the ensuing financial year. The budget
presented in any country is according to the governing law covered by various
articles of constitution of that country. In Constitution of Pakistan there are
various provisions relating to budget. The budget when proposed is a bill before
the parliament and once accepted is an act of parliament. The procedure for
general bills establishes that a bill can originate either in National Assembly or in
Senate. But the money bill can only be originated in National Assembly.
Articles of the constitution of Pakistan relating to the budget are:
Article 73: procedures with respect to money bills when a Money Bill, including
the Finance Bill containing the Annual Budget Statement, is presented in the
National Assembly, a copy thereof shall be transmitted to the Senate which may,
within fourteen days, make recommendations thereon to the National Assembly;
and] 35[(1A) The National Assembly shall consider the recommendations of the
Senate and after the Bill has been passed by the National Assembly with or

without incorporating the recommendations of the Senate, it shall be presented to

the President for assent.
Article 77: tax to be levied by law only. No tax shall be levied for the purposes
of the Federation except by or under the authority of Act of Majlis-e-Shoora
(Parliament).
Article 80: annual budget statement: The federal government shall, in respect of
every financial year, cause to be laid before the National Assembly a statement
of the estimated receipts and expenditure of the Federal Government for that
year, in this Part referred to as the Annual Budget Statement.
Article 81 tells us about the expenditure charged upon Federal Consolidated
Fund
Article 82 relates to expenditure charged upon the Federal Consolidated Fund
may be discussed in, but shall not be submitted to the vote of, the National
Assembly. Article 83 is about Authentication of schedule of authorised
expenditure by the Prime Minister Article 84 is about the Supplementary and
Excess and the procedure of it to be laid down before National Assembly for
approval.
Budget once passed by the National Assembly is transmitted to the President for
approval. The President must give his approval within 30 days. Once it receives
presidential approval, it becomes a law.
The fiscal year in Pakistan starts from 1st July and ends on 30th June. All the
budget-related activities are being done in between these two dates. The budget
preparation starts as early as October when Budget Call Circular sent to various
ministries and divisions asking them to submit their tentative for the upcoming
financial year by the Ministry of Finance and Planning Commission. From
November to February, these ministries and divisions submit their budget
proposals to the concerned quarters. In March and April, these proposals are
thoroughly scrutinised by the Finance Ministry. After the scrutiny, the formulation

of budget proposal is being done. Consideration and approval of these budget

proposals are done during the months of May and June which after the
finalisation become the part of Annual Budget Plan. The budget after approval of
Cabinet presented in the National Assembly, which being debated by Parliament
and finally passed by National Assembly and with the assent of President of
Pakistan it becomes Act of Parliament. If the government is failed to get the
approval of budget from National Assembly it get dissolved automatically.
The annual budget generally presented in the National Assembly during the 2nd
week of June and is passed by the beginning of last week of June. This process
generally takes 12 to 17 working days for the various stages in budget debates.
Since 2003, it had been made essential that the budget statement is copied to
the Senate at the same time as its presentation to the National Assembly. The
Senate which is upper house of the Parliament can discuss the budget proposals
and make recommendations to the National Assembly. These recommendations
are not binding upon the federal government to be accepted.
The role of parliamentary parties is not as significant as it is supposed to be
either ruling parties or parties in the opposition. In Western democracies the
opposition parties have a shadow cabinet which makes their recommendations
related to their ministries and critically analyses the working of the government.
The parliamentary parties dont make organised advance preparation for budget
debate. The parliamentary parties hold meetings before presentation of budget
and during two days break between presentation and debate but these are
formal meetings only in which some financial experts might give them briefing.
The budget which is being presented in parliament and approved by it, but still
one can see that there is a limited role of Parliament in budget-making process
and it can be enhanced through standing committees. There are currently 41
National Assembly standing committees and Senate of Pakistan has 28 standing
committees. Each of this committee is corresponding to a federal ministry or

division. However, the current structure and practice excludes standing

committees from any role in budget process and by amending in the rule of
business the standing committees can have a greater say while allocating budget
to any ministry or division. During the budget-making process, the civil society is
not being consulted. The budget-making process can be more efficient and
effective if all the stakeholders taken on board before finalisation of budget
proposals.