Budget for next year aimed at reducing fiscal deficit: Aurangzeb

Finance Minister Muhammad Aurangzeb said in the National Assembly (NA) on Tuesday that next year’s fiscal budget will aim to reduce fiscal deficit by focusing on measures that enhance the government’s revenues and reduce unnecessary expenditures.

Aurangzeb presented the budget on June 12 in the National Assembly, after which the lower house of parliament mulled over the financial plan for the upcoming fiscal year.

Today, PPP — which had initially boycotted the debate over the budget — decided that it would vote for the finance bill despite certain reservations.

While giving a press briefing after the party’s meeting, PPP leader Naveed Qamar said the meeting decided that if the party did not vote for the budget, “it would amount to dismantling the government and paving the way for instability in the country”.

The government now has numbers and this budget will go through, Qamar said.

Besides the PPP, members of MQM-P, another ruling coalition partner, also expressed concern over the government’s move to impose taxes on the salaried and middle-class people, stating that the budget would cause more inflation in the country.

A number of treasury members also questioned the credentials of FM Aurangzeb, calling him an “imported” person, and accusing him of having no clue about the ground realities and real issues being faced by the masses.

On Sunday, PTI leader Asad Qaiser met Jamiat Ulema-i-Islam — Fazl (JUI-F) chief Maulana Fazlur Rehman and the pair rejected the proposed federal budget for the upcoming fiscal year, calling it an “IMF budget” and “anti-people”.

Winding up today’s NA discussion on the budget, Aurangzeb quoted Prime Minister Shehbaz Sharif as saying that the process of simplicity and austerity would continue in the next fiscal year.

According to state-run Radio Pakistan, he said a committee, which he would head, was constituted to present recommendations, which include shutting down certain ministries or their merger and devolution to the provinces.

He announced that pension expenditures would be brought down through pension reforms in the future.

The finance minister pointed out that the homegrown reforms programme was the basis of the next year’s fiscal budget to steer the country out of a difficult economic situation.

The reforms include enhancing the tax-to-GDP ratio to 13 per cent, state-owned entities (SOE) reforms, public-private partnerships and energy sector reforms, Aurangzeb said, noting that the government was seriously committed to the plan and had begun its implementation.

He assured that all the stakeholders would be taken on board for the plan’s implementation.

Aurangzeb said that the digitisation process of Federal Board of Revenue (FBR) has been accelerated, adding that legislation was being introduced in parliament to bring changes in boards of the power sector.

The privatisation of PIA has been taken forward, he said.

Highlighting other points of the home-grown reforms plan, the FM said they included targeted social protection, a broad-based fair taxation system and initiatives for the health and education sectors.

Aurangzeb was appreciative of the recommendations submitted by the Senate for inclusion in next year’s budget, adding that the government had decided to include these recommendations in the budget keeping in view the public interest.

He said these include providing an opportunity to the non-filers for a personal hearing before implementing the measures of SIM blockage and a ban on foreign travel.

He announced that the stationery items would remain exempted from tax, and that current reduced rates for Hybrid-Electric Vehicles will remain intact.

He said under the Export Facilitation Scheme 2021 policy, zero rating for the local suppliers was not being abolished.

The finance minister said agriculture, education and health sectors were prioritised, while proposals such as exempting charity hospitals from sales tax would be given serious consideration.

He further noted that the government was fast-tracking reforms in the FBR, and Rs7 billion were earmarked in the budget for it.

Aurangzeb noted that action would be taken against retailers from July 1 for failing to register them with the FBR Tajir Dost Scheme.

With regards to the defence budget, the finance minister said that the country’s armed forces have rendered immense sacrifices for Pakistan’s defence and are standing firm to meet internal and external threats.

He said national security was Pakistan’s foremost priority, assuring that the armed forces will be provided with necessary resources.

The finance minister announced honoraria equivalent to three months of basic pay for various departments, including the staff of the National Assembly, Senate, PID, Radio Pakistan, PTV and APP, who performed duties in Parliament House during the budget session.