ISLAMABAD: While the government is in difficulties facing acute budget deficits, it is likely to announce its last and sixth budget by the end of April 2018.
According to sources, the Ministry of Finance is making arrangements to announce its last budget on April 25. In this regard; officials have been instructed to formally start the required proceedings.
As the government is facing an acute financial crisis amidst budget and current account deficits, looming repayments of loans, circular debt etc., it is still double minded whether to go for budget preparations or leave it to the interim government, insiders claim.
In the recently held meeting, the finance ministry has also discussed Article 86 of the constitution under which an incumbent government (interim by June 2018) will present the budget.
The article says, ”power to authorize expenditure when Assembly stands dissolved.- notwithstanding anything contained in the foregoing provisions relating to financial matters, at any time when the National Assembly stands dissolved, the Federal Government may authorise expenditure from the Federal Consolidated Fund in respect of the estimated expenditure for a period not exceeding four months in any financial year, pending completion of the procedure prescribed in Article 82 for the voting of grants and authentication of the schedule of authorised expenditure in accordance with the provisions of Article 83 in relation to the expenditure.”
To decide on the budget, the finance ministry has also decided to take a point of view from the Ministry of Law. In case of making an announcement, the ministry may also not be able to issue the Economic Survey of 2017-18.
It is pertinent to mention here that adviser to Prime Minister on Finance, Dr Miftah Ismail on Sunday chaired a meeting to review the activities related to preparation of Budget 2018-19. The additional Secretary budget gave a briefing on the budget preparations and shared timelines for various activities.
The Adviser directed budget-related activities to be given due priority and agreed on timelines. He said that keeping in line with the traditions of the past four years of the PML-N government, due importance would continue to be accorded to proposals from all relevant stakeholders, particularly the business community and the Chambers of Commerce and Industries. He added that the budget would reflect the government’s efforts for having inclusive economic growth, measures for expanding the tax base and tax net while also taking steps for improvements in all sectors of the economy.
The Finance Ministry had issued the budget circular on December 18, 2017, and had directed all divisions and ministries to submit their budget estimates till the middle of April 2018.
