NA body terms FBR’s Rs75bln spending proposal as anti-austerity

ISLAMABAD: A parliamentary body on Friday expressed concern over a Federal Board of Revenue’s (FBR) proposal to allocate Rs75 billion in next fiscal year’s development budget for construction and equipment procurement of the institution, dubbing it as an antithesis to broadening of revenue base drive.

Adeela Bokhari, director general of FBR procurement and automation told the parliamentary body that the revenue body proposed total 26 projects – including 12 ongoing and 14 new schemes – for the upcoming PSDP.

Bokhari said total estimated cost of all 26 development schemes of construction and equipment procurement, proposed by the FBR for public sector development program (PSDP) 2020/21, is worth Rs75.19 billion.

National Assembly standing committee on finance, revenue and economic affairs expressed their concerns over the proposed schemes by the FBR. The committee members said the proposed schemes don’t support its vision for broadening of revenue system in the country.

However, additional secretary of ministry of finance, revenue said the FBR has already initiated separate program for tax reforms to increase the revenue.

The committee directed the FBR to prioritise their schemes before making the request to include the same in the budget for fiscal year of 2020/21.

The NA body urged the FBR to go for revenue generation and resource mobilisation for achieving the future revenue targets.

The committee emphasised the FBR to enhance the staff capacity and implement the agenda of automation to introduce the optimum international practices in the institution.

The meeting discussed the proposed development schemes of the FBR for PSDP of the next fiscal year of 2020/21.

While discussing the agenda pertaining to the issues being faced by textile exporters, the meeting noted that the NA body appointed a sub-committee, and is awaiting its recommendations.

Stakeholders were also present in the meeting and the committee asked them to present their issues in the meeting of the sub-committee, which would shortly be held.

The additional secretary briefed the committee about the ongoing and new public sector development projects, under the purview of finance division. The committee deliberated on project-to- project basis.

The standing committee said the State Bank of Pakistan might be asked to provide their views about the future up-gradation of Pakistan Mint, a coin press located in Lahore, as per the central bank’s requirements.

However, it said except the ongoing schemes that the standing committee on commerce recommended earlier this week, all the remaining schemes might be considered for allocation of funds in the next fiscal year, as proposed by the ministry.

Members of National Assembly Jamil Ahmed Khan, Faheem Khan, Qaiser Ahmed Sheikh, Ali Perviz, Aisha Ghaus Pasha, Nafisa Shah, Raza Nasrullah, Abdul Wasay, Nasrullah Khan Dreshak, Naveed Qamar, Ramesh Kumar Vankwani, Sami-ul-Hassan Gillani and senior officers from finance ministry and the FBR attended the meeting.