Senate body for reduction in President, PM House allocations

Islamabad

The Senate Standing Committee on Finance on Saturday finalised recommendations for slashing down budgetary allocation for President House by 30 percent and PM House by 15 percent as well as increasing salaries of the public sector employees by 20 percent in the budget 2017-18.

The Senate Standing Committee on Finance and Revenues held its meeting under the Chairmanship of Senator Saleem Mandviwalla here at the Parliament House on Saturday in which Senator Farhatullah Babar from PPP suggested to set up a Commission with the mandate to review policy of distribution of urban lands in last 20 years among military and other segments of the society which was also approved by the Panel. However, it was observed that it was provincial subject as they provided lands to retiring military officials. 

The Senate panel unanimously recommended for increasing salaries by 20 percent instead of 10 percent as announced in the budget speech by Finance Minister Ishaq Dar.

Federal Secretary Finance Tariq Bajwa told the committee that the government merged adhoc allowance of 50 percent and then increased salaries of 10 percent. “The actual impact of this raise will be hovering around 14 percent in real terms,” said Mr. Bajwa.

Senator Azam Swati from PTI proposed that the budget allocated to President House to be cut by 30 percent and PM House by 15 percent to follow austerity measures as claimed by the government which was approved the Senate panel. 

Secretary Finance told the committee that the government had made significant reduction in allocation of PM House soon after coming into power so this raise in funds was granted against narrowed base.

The Senate panel also recommends for setting up a Victim Support Fund for the rehabilitation of families of victims of fight against militancy and allocation of sum of Rs20 billion and allocation of Rs10 billion for the implementation of Fata reforms. The Secretary Finance told the committee that the government allocated Rs26.9 billion for development of Fata.

The National Finance Commission (NFC), he said, was considering allocation of 3 percent funding from Federal Divisible Pool (FDP) for Fata, AJK and GB and another 3 percent for war on terror. But the Senators belonging to Fata objected to this statement and said that they were already behind 100 years and in case of further neglect they would continue to remain stone ages. He said the government had committed allocation of 3 percent resources out of FDP only for Fata but now the bureaucrats were adding AJK and GB in it which would not be allowed.

The Senate approved recommendation for allocation of Rs100 million for National Commission for Human Rights Fund under the NCHR Act 2012.

The Senate recommends for increase allocation for Higher Education Commission (HEC). The chairman HEC told the committee that the government allocated Rs62 billion including budget and current expenditures against their requirement of Rs72 billion.

The committee finalised recommendation for ensuring concession in fees of disabled persons in private and public sector institutions.

On the recommendation of increasing pension of senior citizen by 80 percent, Secretary Finance Tariq Bajwa told the Senate panel that the pension bill ballooned to Rs245 billion and in next 10 to 15 years the government would not be able to bear such huge expense from its kitty so there was need to introduce contributory pension system.