With revised Rs14.48tr outlay, NA passes Finance Bill, 2023

ISLAMABAD: The National Assembly (NA) passed the Finance Bill 2023-24 with a majority vote on Sunday, with a revised outlay of Rs14.48 trillion after adopting certain amendments to the proposed budgetary measures.

The finance bill was approved by the National Assembly with certain changes in the figures related to revenue targets and other matters in the budget for the upcoming fiscal year which slightly enhanced the total outlay from Rs14.46 trillion to Rs14.48 trillion.

The finance bill, moved by Finance Minister Senator Ishaq Dar, set target of gross domestic product (GDP) growth rate at 3.5pc, the revenue target of the Federal Board of Revenue (FBR) increasing from Rs9.2 trillion to Rs9.415 trillion, provincial revenue from Rs5.276 trillion to Rs5.39trillion, federal government expenditures from Rs14.46 trillion to Rs14.48 trillion, the pension volume from Rs761 billion to Rs801 billion.

The subsidy volume would stand at Rs1.064 trillion and the grants volume at Rs1.405 trillion. The bill now would go to the president for assent, who would sign it into a law, and it would become effective from July 1, 2023.

Speaker National Assembly Raja Pervaiz Ashraf put all the amendments, proposed by lawmakers including Saira Bano, Nisar Cheema, Zahra Wadood Fatimi, Nawab Sher Waseer, Asiya Azeem, before the House, which were rejected with a majority vote. However, an amendment proposed by Maulana Abdul Akbar Chitrali relating to use of official vehicles, was approved by the House.

In the light of Senate recommendations, the National Assembly also approved the amendments proposed to the finance bill 2023-24 by the finance minister.

According to the government, the budgetary measures would also result in reducing budget’s deficit, and the fiscal deficit would by Rs300 billion. The finance bill, moved by Minister for Finance and Revenue Senator Ishaq Dar, was passed with majority vote after clause-by-clause reading.

Ishaq Dar said his statement regarding the special Hajj flights was presented in the media and social media in an incorrect manner, adding all lawmakers were going to perform the religious obligation at their own expenses. He said the Saudi government had stopped further Hajj flights, but Pakistan requested the Saudi government to allow one flight enabling the lawmakers, participating in the ongoing budget session, to reach the holy land for the Hajj.

The minister announced honorarium equal to three basic salaries for all the government employees deputed to perform the special budget session duties on the Parliament premises.

Meanwhile, the National Assembly also approved 84 supplementary demands for grants pertaining to various ministries for the fiscal year 2021-22. In all 15 excess demands for grants pertaining to various ministries for the year 2021-22 were also approved by the House.

Finance Minister Ishaq Dar also laid before the House the Schedule of Authorised Expenditure 2023-24, Supplementary Schedule of Authorized Expenditure 2021-22 and 2022-23 and Excess Schedule of Authorised Expenditure 2021-22.

Meanwhile, Minister for Parliamentary Affairs Murtaza Javed Abbasi expressed his satisfaction and appreciation for approval of the budget for fiscal year 2023-24. He hailed the government’s recognition of the agendas put forth by allied parties and the constructive suggestions offered by the opposition.

Meanwhile, Minister for Finance and Revenue Senator Muhammad Ishaq Dar clarified on Sunday that there would be no double pension for government employees falling in the category of grade 17-22.

Responding to a point raised by Minister for Water Resources Syed Khurshid Ahmed Shah in the National Assembly, the minister explained that the restriction would not apply to government employees below Grade 17, as there were instances where some employees retired after 15-20 years of service and started another job.

The minister stated if some employees (Grade 17-22) were working on a contract basis after retirement, they would have to choose one pension that suited them, as the policy began from the top. He emphasised that this was an old issue that should have been resolved earlier, which the incumbent government had started to redress.

Ishaq Dar mentioned that there was no specific timeframe for pension payments to the dependents of retired employees and widows after their death. However, this has now been limited to 10 years.

He stressed that such reforms were crucial because the pension budget had reached Rs800 billion, which was nearly 50 percent less than the current figure a few years back. He warned that without these reforms, it would become unsustainable for the country.

Addressing concerns raised by Ghous Bux Khan Mahar of the Grand Democratic Alliance (GDA) regarding the withdrawal of the urea subsidy, the minister stated that the government aimed to promote local fertilizer production and achieve self-sufficiency in this sector.

He mentioned that several Pakistani companies were planning to invest over $200 million in the urea production sector. He assured the House that the challenges faced by the agriculture sector, considered the backbone of the national economy, would be addressed in due course of time through mutual consultation with all stakeholders.