Budget: body formed to firm up proposals

ISLAMABAD: Prime Minister Shehbaz Sharif has constituted 11-member ministerial committee headed by Finance Minister Muhammad Aurangzeb to deliberate upon and firm up proposals for budget 2024-25 with focus on improving fiscal situation including reduction in non-development budget, fostering export-led growth and providing relief to common man against harsh impact of high inflation, well-informed sources told Business Recorder.

Members of the committee are: (i) Minister for Defence; (ii) Minister for Planning, Development and Special Initiatives; (iii) Minister for Industries and Production; (iv) Minister for Economic Affairs; (v) Minister for Commerce; (vi) Minister for Petroleum; (vii) Deputy Chairman Planning Commission; (viii) Secretary Finance; (ix) Secretary Planning, Development and Special Initiatives; and (x) Secretary Revenue Division.

Official sources told Business Recorder, Ministries of Planning, Development and Special Initiatives, Finance, Economic Affairs, Industries and Production, Commerce and the Federal Board of Revenue (FBR) have been assigned the responsibility to prepare proposals for development and growth-oriented budget that lay the foundation of long-term sustained growth. Ministry of Planning, Development and Special Initiatives will take the lead on this proposal. Federal Board of Revenue has been directed to draft measures to significantly enhance revenue mobilization with equitable taxation across sectors of the economy, aiming horizontal expansion (broadening of tax base) as against vertical expansion (burdening existing taxpayers).

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The Ministry of Commerce has been assigned the responsibility of preparation of tariff reforms and rationalization for lowering the cost of imported raw material for local industry and enabling its integration with regional and global value chains.

Ministries of Finance, Power and Defence will firm up proposals for reforms for reduction in government expenditures (non-development).

According to the Terms of Reference (ToRs) Ministries of Commerce and Industries and Production will propose measures for propelling industry towards export-led growth.

Ministries of Finance and Industries and Production will suggest budgetary measures to address causes of inflation and to provide relief to common man against inflation through BISP. Proposals for targeted direct subsidies for poor sections of population to mitigate impact of persistent high inflation will also be done by both Ministries jointly.

Ministries of Industries and Production, Commerce and Petroleum Division will draft proposals for fast-tracked development of high potential sectors (IT, agriculture, SMEs, e-Commerce, remittances etc.)

Federal Board of Revenue in collaboration with Ministry of Law and Justice will propose legal changes to be incorporated in Finance Act for implementation of approved the FBR reforms/restructuring plan.

The leads may co-opt other members if deemed necessary for firming up proposals. Besides input on ToR regarding remittances, the State Bank of Pakistan will share proposals for increasing the availability of financing for priority sectors.

The sources said the Finance Minister has desired inclusion of Minister for Power, Sardar Awais Khan Leghari as additional member of the committee. The Finance Ministry maintains that on receipt of proposals, a meeting of the Committee will be convened for in-depth discussion to ensure that firmed up proposals are submitted for consideration of the Prime Minister.

Copyright Business Recorder, 2024