As Pakistan’s upper and lower houses of parliament commence debates on the federal budget for the fiscal year 2024-25, tensions are running high within the ruling coalition. The Pakistan Peoples Party (PPP), a key ally of the Pakistan Muslim League-Nawaz (PML-N), has expressed significant grievances regarding the money bill, both at the federal level and in Punjab.
PPP Chairman Bilawal Bhutto Zardari is preparing to address these concerns directly to Prime Minister Shehbaz Sharif in an anticipated meeting within the next few days. Sources reveal that the prime minister extended Eid greetings to Bilawal and invited him to the Prime Minister’s House, an invitation that Bilawal accepted. It is expected that Bilawal will use this opportunity to discuss the federal and Punjab budgets in detail.
The PPP’s absence from the National Assembly’s budget session on June 12 signalled their discontent. Deputy Prime Minister Ishaq Dar had to personally persuade the PPP to participate in the proceedings. Despite his efforts, Bilawal only sent three of his MNAs — Naveed Qamar, Khursheed Shah, and Ijaz Jakhrani — to represent the party.
PPP lawmaker Shazia Marri expressed the party’s dissatisfaction, stating, “The PML-N has violated the agreement that it reached with the PPP before forming the government in the Centre as it has not taken any input from its key ally in the PSDP budget. The government is taking us for granted.”
Meanwhile, in the National Assembly, Leader of the Opposition Omar Ayub will kick off the budget debate. Senate members will discuss and propose recommendations on the budget, with the Senate Finance Committee presenting its recommendations to the House. Upon approval, these recommendations will be submitted to the National Assembly for consideration.
The budget debate is a critical parliamentary process where the government’s proposed budget for the upcoming fiscal year is discussed, scrutinised, and debated by members of both the National Assembly and the Senate. The finance minister presents the budget in the National Assembly, outlining the government’s revenue and expenditure plans, fiscal policies, and economic projections for the next financial year.
Following the presentation, a general debate ensues where National Assembly members discuss the overall budget, express opinions, raise concerns, and propose suggestions. This debate covers all aspects of the budget, including taxation, public spending, and economic policies. The budget is then referred to relevant committees, primarily the Standing Committee on Finance, which examines the proposals in detail, reviews departmental allocations, and considers any amendments. These committees may also hold public hearings and seek input from experts and stakeholders.
While the Senate cannot block the budget, it can make recommendations. The Senate Finance Committee reviews the budget and submits its recommendations to the Senate, which then debates and approves these recommendations before forwarding them to the National Assembly. The National Assembly considers the Senate’s recommendations, giving them due consideration although not being obligated to accept them.
The National Assembly votes on the demands for grants, which are detailed requests for funding from various government departments and ministries. Each demand is debated and voted upon. The Finance Bill, containing the legal provisions to implement the budget, is also debated and voted on, including changes to tax laws, duties, and other financial regulations.
Finally, the budget is formally approved by the National Assembly through a majority vote, becoming law and coming into effect at the beginning of the new fiscal year.