Senate’s take on budget
Senate panel’s harsh words reflected not just position of the opposition, but of a few members of the ruling alliance
Senators have made ‘budget week’ even tougher for the ruling PTI, with the Upper House’s Standing Committee on Finance rejecting the Finance Bill 2019 while demanding that the dollar exchange rate be frozen at Rs151 and the interest rate brought down to a single digit. The Senate committee, on Thursday, also demanded that the prices of electricity and gas be stabilised. The Senate panel’s harsh words reflected not just the position of the opposition, but of a few members of the ruling alliance and dissenters within the ruling party itself.
Incidentally, speaking elsewhere, Asad Umar also went to lengths to assure that the terms agreed to with the IMF — which would not allow any of the Senate panel’s demands — were the same that he negotiated before his ouster as finance minister. In the Senate panel’s meeting, even a PTI’s own Senator, Mohsin Aziz, said he was critical of many areas of the budget and had previously demanded withdrawal of some harsh measures, but he added that rejecting the finance bill in its entirety would create serious problems for the country. The fact that he walked out from the eventual vote was also telling — he could not vote in favour of the bill in its current form.
One of those serious problems is that the rejection of a money bill is a de facto vote of no confidence, which means the PM would have to resign, and fresh elections may be necessitated if a successor is not agreed on by lawmakers. This means that the PTI, which does not have an absolute majority in the National Assembly, must rely on its allies, many of whom have already voiced their concerns about the bill. That, in turn, means that we will likely either see concessions such as the bill being watered down to ensure it easily passes, or, worryingly, the curious elevation of a few members of allied parties to ministerial posts.
Whatever the fate of the finance bill and the confidence reposed by parliament in the government presenting it, we can say with full confidence that these are exciting times.
Published in The Express Tribune, June 22nd, 2019.
Incidentally, speaking elsewhere, Asad Umar also went to lengths to assure that the terms agreed to with the IMF — which would not allow any of the Senate panel’s demands — were the same that he negotiated before his ouster as finance minister. In the Senate panel’s meeting, even a PTI’s own Senator, Mohsin Aziz, said he was critical of many areas of the budget and had previously demanded withdrawal of some harsh measures, but he added that rejecting the finance bill in its entirety would create serious problems for the country. The fact that he walked out from the eventual vote was also telling — he could not vote in favour of the bill in its current form.
One of those serious problems is that the rejection of a money bill is a de facto vote of no confidence, which means the PM would have to resign, and fresh elections may be necessitated if a successor is not agreed on by lawmakers. This means that the PTI, which does not have an absolute majority in the National Assembly, must rely on its allies, many of whom have already voiced their concerns about the bill. That, in turn, means that we will likely either see concessions such as the bill being watered down to ensure it easily passes, or, worryingly, the curious elevation of a few members of allied parties to ministerial posts.
Whatever the fate of the finance bill and the confidence reposed by parliament in the government presenting it, we can say with full confidence that these are exciting times.
Published in The Express Tribune, June 22nd, 2019.