Time for action: After 8 days of bickering, Sindh passes Rs686b budget

Lawmakers also pass supplementary budget of Rs35b for outgoing year.


Hafeez Tunio June 25, 2014

KARACHI:


The opposition members shouted, whispered and even wrote couplets to criticise the budgetary allocations this year. The treasury members vetoed, however, most of the voices of opposition and passed the Rs686-billion budget for the year 2014-2015 on Wednesday.


After eight days of budget discussions, the Sindh Assembly passed the budget along with a supplementary one for the outgoing year worth more than Rs35 billion. It also adopted a finance bill to withdraw taxes on education, health and 120-square-yard houses.



Wednesday's session started with speaker Agha Siraj Durrani sitting comfortably on the plush sofa of the new assembly building. The opposition members did, however, make the session uncomfortable by demanding the government reduce non-development expenditure, which is an amount of Rs32 billion set aside for furniture, air-conditioners, entertainment and discretionary funds for Governor and Chief Minister houses, the judiciary, Sindh Secretariat and the Sindh Assembly building.

The leader of the opposition, Shaharyar Mahar, opposed such 'charged expenditures'. "Why has such a huge amount been kept aside for entertainment, furniture and gardening at government offices?" he wanted to know.  However, the treasury members brushed aside his concerns and said these expenses were necessary. "In case of emergency, the chief minister has to move in a helicopter, like he did during the floods and the earthquake in Awaran," parliamentary affairs minister Dr Sikandar Mandhro responded. "We purchase vehicles for government offices and the employees cannot sit without chairs and furniture. We have to give gifts to the international delegates and diplomats visiting Pakistan."

Perhaps it was due to the fact that the session had entered its eighth day but several lawmakers failed to follow protocol. The PTI members left the House before the budget was passed, while the PML-N parliamentary leader failed to show up entirely. The ones who did grace the occasion needed to do some homework as several cut motions were either wrong or irrelevant.

Supplementary budget

Last year, the government had presented a budget of Rs617 billion but spent Rs32 billion more than the actual amount, for which it presented a supplementary budget on Wednesday and had it passed.

Presenting the supplementary budget, the opposition members moved around 35 cut motions, pleading to slash some amounts but the government rejected all the opposition's requests.   "Most of the expenses shown are of purchasing furniture, vehicles, medical, travelling and other allowances," pointed out Pakistan Tehreek-e-Insaf's Syed Hafeezuddin. "This will further burden our resources. Please accept our motions and reduce this unnecessary expenditure." His request failed to get any responses from the government.

Grants

Dr Mandhro presented 59 demands worth Rs650 billion for grants for the financial year 2014-2015. The opposition members including Shaharyar Mahar, Nusrat Seher Abbasi, Nand Kumar and Jam Madad Ali of Pakistan Muslim League-Functional, PTI's Dr Seema Zia and Syed Hafeezuddin moved around 84 cut motions and requested a reduction in the non-development expenditure but the government rejected their all requests.

"You have allocated Rs15.4 billion for the purchase of vehicles in various departments," pointed out Dr Zia. "I request you to please reduce this amount by at least Rs10 billion and set a precedent of being a democratic government." She urged the government to sacrifice this year by not buying furniture. "This amount can be spent on orphaned children," she suggested. Dr Mandhro was, however, adamant that the departments cannot function without such funds.

'Unforeseen' expenses

An amount of Rs6 billion allocated for unforeseen expenses also stirred a debate in the House. Mahar claimed such an allocation was unjustified and a burden on the economy. The treasury members responded this amount has been kept aside to pay the outstanding utility dues that various departments owe to K-Electric.

Govt takes back 15% sales tax

The last item on the agenda during the Sindh Assembly session on Wednesday was the finance bill to rationalise and enhance certain taxes and duties in the province.

Since the budget was presented on June 13, the Muttahida Qaumi Movement (MQM) and the opposition parties had been opposing the government's decision to impose taxes on educational institutions, hospitals, 120-square-yard houses and motorcycles. The MQM lawmakers, Syed Sardar Ahmed, Syed Khalid Ahmed and Muhammad Hussain Khan, moved separate amendments to the finance bill to withdraw the 15% sales tax on private institutes, teaching hospitals, registered medical, dental practitioners and consultants.

After successful negotiations between the two coalition partners, the chief minister moved the finance bill after announcing that they have tried to rationalise the taxes and make some corrections. He moved three amendments to withdraw 15% sales tax on services, 120-square-yard houses and advertisements. Meanwhile, the life-time tax on motorcycles, 15% tax on fashion designers, call centres, rent-a-car and car washing services, automobiles, property dealers, scientific and engineering consultancy firms will be retained.

After the budget was passed, the speaker prorogued the session for an indefinite period.

Published in The Express Tribune, June 26th, 2014.

COMMENTS (1)

Anjum Arshi | 9 years ago | Reply There is absolutely nothing in this budget for Karachi, a city of 20 million people having no decent transport services, forget the mass transit; and where there are only 13,000 policemen (about 9000 of them on VIP duty). And Karachi's "biggest representative" party is part of the treasury benches. Or it is not? (Hard to remember).
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