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THE BUDGET PROCESS IN PAKISTAN

A budget is an estimate of income that reflects the country’s social, economic, fiscal
and financial responsibilities for a set period of time. A budget is a government
document presenting the government’s proposed revenues and spending for a
financial year.

Known as the Annual Financial Statement of the country the budget presented is
according to the governing law covered by various articles of the constitution of the
country. The bill can be tabled either in National Assembly or in the Senate. But the
money bill can only be tabled in National Assembly, the lower house of the
parliament.

This document is presented by the finance minister and after passage of the finance
bill in the parliament, approved by the President within 30 days of its passage to
become a law.

The fiscal year in Pakistan starts from July 1st. The Budget proposals, made by the
Finance Ministry and considered and approved by the Cabinet, are presented in the
Parliament. There is no formal provision in the rules of procedure for a pre-budget
discussion or consultation on the part of the Ministry to engage the public or the
Parliament on fiscal matters and issues.

When approved by the Cabinet, the Finance Minister, on behalf of the Government,
delivers his Budget speech in the National Assembly.

No other business is allowed in the House on that day.

The stages of the discussion of the Budget are as follows:

 General Discussion on the Budget

 Discussion on Appropriations
 Discussion and voting on Demands for Grants
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What are the Parliamentary rules?

According to the Rules of Procedure of the National Assembly, the Speaker allots
days for the different stages of the Budget. It requires two days to lapse between the
days the Budget is presented and the first day of the General Discussion. The Rules
prescribe that not less than four days should be allotted for the General Discussion.
Any member can move a cut-motion to reduce the amount of demand. Each Demand
for Grant is discussed and voted upon. Consequently, a Vote of Account is taken and
the Finance Bill is passed. The Budget is submitted to the Senate for
recommendations. The Senate can make recommendations on the Budget to the
National Assembly within seven days. These recommendations are not binding on the National
Assembly.

The debate duration

The annual budget generally is 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 accepted upon the federal government’s approval.

Some of the areas in which the Parliamentary Budget Process in Pakistan needs urgent
improvement are as follows:

The National Assembly standing committees and Senate of Pakistan has standing committees.
Each of this committee is corresponding to a federal ministry or division.

1. The period allowed between the presentation of Budget and its passage is too short for
any meaningful debate or input by parliamentarians.
2. There is no provision and tradition of parliament led pre-budget consultation with
parliamentarians, civil society and citizens at large.
3. Individual parliamentarians and the Parliament as an institution, lack the infrastructure to
give research and analysis support for an effective Budget debate in the Parliament.
4. The Budget relating to Defense services lacks details. Even the distribution among the
three services such as Army, Air Force and Navy is not provided.
5. The Standing Committees both of National Assembly and Senate, which are mostly
formed in line with the Ministries and Divisions, have not been assigned any role in the
 Budget process. Even the Standing Committees on Finance does not play any role in the
Budget process.

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.

Leading & Latest Cases on Article 78 of the Constitution of Pakistan, 1973 :

P L D 1989 LAHORE 121 PUNJAB CABLES GOVERNMENT OF PAKISTAN

THE COLLECTOR OF CUSTOMS, M/S. NEW ELECTIONIC(PVT)

1994 PTCL 448
KARACHI AND OTEHRS. LIMITED ETC.
P L D 2000 SC 225 Dr. M. Aslam Khaki Syed Muhammad Hashim and 2 others