Fiscal year 2012-13: MQM presents Rs3.61 trillion shadow budget
The Muttahida Qaumi Movement (MQM) presented a shadow budget of Rs3.61 trillion on Sunday, a day ahead of consultations with Prime Minister Yousaf Raza Gilani and prominent members of parties in the Pakistan Peoples Party (PPP)-led ruling coalition.
According to sources, the Muttahida Qaumi Movement (MQM) and the Awami National Party (ANP) delegations, led by Deputy Convener of the Coordination Committee of MQM Dr Farooq Sattar and ANP Senator Haji Mohammad Adeel, respectively, would call on the premier on Monday in a bid to discuss and hammer out budgetary proposals for the 2012-2013 financial year.
Besides the upcoming budget, the law and order situation in Karachi, the premier’s contempt sentence and other pressing issues are likely to be discussed in the meeting between coalition partners.
Meanwhile, Finance Minister Dr Abdul Hafeez Shaikh called on Prime Minister Gilani at the PM’s House on Sunday to brief him regarding the meeting with allies and to review decisions of the National Economic Council (NEC).
The prime minister expressed satisfaction that the coming year’s federal development budget would increase from Rs300 billion to Rs360 billion, adding that the additional funds would be used for a regionally balanced development and the completion of projects in energy, infrastructure and food security.
For the upcoming budget, it was decided that it should focus on ensuring macroeconomic stability, growth, utilisation of resources, protection of vulnerable groups, incentives for private sector development and relief to the public while ensuring fiscal balance.
The minister informed the premier that Gross Domestic Product (GDP) in the current fiscal year was 3.7%, continuing an upward trend of the last three years. Similarly, the rate of inflation will be declining for the third consecutive year, the minister added. Shaikh also informed the PM that tax collection in the first ten months had increased by about 24%.
According to sources, representation from the Pakistan Muslim League-Quaid and Federally Administered Tribal Areas in the meeting has not been confirmed but invites have been sent out to them.
Shadow budget
Meanwhile, the MQM is likely to share its shadow federal budget with the prime minister today.
“The MQM being a political party of Pakistan and especially being a coalition partner of the government has set a precedent in the economic parliamentary history of the country by presenting a shadow budget,” MQM’s Dr Farooq Sattar told The Express Tribune on Sunday.
Sattar went on to add that the proposed shadow budget would not focus on exposing the deficiencies and mismanagements of the government but would provide an opportunity to the masses to countercheck the statistics and figures in the upcoming budget to be presented in a week’s time.
MQM’s shadow budget
Income from all sources above the taxable limit be taxed
Reduction in sales tax rate from 16 % to 12 %
Reduction of maximum duty rate on imports to 10-15% with a minimum of 5%, exception only with the approval from parliament
No duty or sales tax on machinery and raw materials essential for industries
Abolition of petroleum levy
Reduction in the basic discount rate from 12 % to 10 %
Reduction of federal government expenditure due to devolution and austerity measures
Improving governance of public sector enterprises (PSE), prevent their hemorrhaging and assign a role to the private sector in public-private partnership models
Reducing misuse of Afghan Transit Trade, under-invoicing and curbing smuggling in Pakistan
Assigning a greater role to overseas Pakistanis
Availability of basic food items to the poor at subsidised rates
Improving equity in the taxation system by increasing the direct and indirect taxes ratio (45:55 from 35:65)
Published in The Express Tribune, May 28th, 2012.
COMMENTS (16)
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ
@thomas edison: Well from the people of course. It's been doing that since year 1. Looting the people for their own personal gains. What has the govt actually done for the people?! Our government has given us nothing but pain, suffering, depression, and not to mention the monetary losses, the factories and businesses that have shut down.
What government expenditure are you talking about? Mr. Yousaf Raza Gilani (who in his declaration of assets only owns a small house and if i am not wrong 1 car) spending 8.5 million rupees on 3 coats? or Mr. Zardari who is partying abroad while the people suffer from floods, crime and terrorism?
@thomas edison: government should decrease their expenditure.
@ A J Khan, Supreme Courts decision was on the Government posts financed by tax payer money. MNA, MPA, Advisors and these are government posts, AH is a common citizen of Pakistan chairing a Political Party no part of constitution bars such person from ALSO holding a foreign nationality, (note the word also). AH wast, isn't and most probably wont be elected representative of any part of the country, and also he was not the one who presented it, it was elected representatives of the party who did.
Also if IK can present solutions and budgets while having no seats in current parliament then MQM can also do it.
@A J Khan:
People of Karachi has given the mandate to MQM which provides 70% of the Tax revenue to Pakistan... Through which whole of Pakistan finances its budget! Go it!
@Yasir Sheikh:
Opposition haven't done this in 4 Years.
They didn't present adjournment motion on SUGAR CRISIS as well.
Shadow budget is usually presented by opposition, but not necessarily.
@thomas edison:
By imposing tax on income from agricultural sources... which is 0% currently, even if you earn hundreds of millions from your farms.
Totally agree with Yasir Sheikh
MQM is part of the government and I don't understand why a Govt-coalition party would present a shadow budget. If they have any input, you're the Govt, do it. They are just trying to score points with such childish acts.
Is this a lost episode of Fantasy Island?
MQM feels the pain of poor People and now MQM provides the solution to finish the poverty from Pakistan.I called it a better step by MQM. Shadow budget presented by MQM will focus on exposing the shortcomings, mismanagement, hollow slogans, unfulfilled commitments and false promises & measures needed to be taken to convert public sector enterprises into profit-making organizations.
Except for the abolition of petroleum levy, the things are good in paper.
I challenge MQM to implement this shadow budget if and when they come into power! FACTA, NON VERBA!
Since when has the people of Pakistan given a mandate to MQM to make a budget for them. Only yesterday Supreme Court of Pakistan has directed that important posts cannot be held by Foreigners. In admiration for the decision of the supreme court, MQM should first show its disassociation with their UK citizen "Quaid", before they want to represent the people of Pakistan.
Easier said than done ! Abolition of petroleum levy and reducing GST from 16% to 12% ! Where will the Government finance its expenditure from ?
It seems feasible to me atleast way better than PPP government .