# *Detailed SUMMARY of the article "Budget democratisation" by Ahmed Bilal Mehboob, Published in Dawn on June 14th, 2025:* The article examines the significant *democratisation* of *Pakistan's budget process* over the past *decade*, contrasting it with the previously *undemocratic* system where *elected representatives* had minimal involvement beyond approval. *Ten years ago*, the budget process was among the *least democratic* globally, with *National Assembly (NA)* debates lasting only *10 days* and *standing committees* having no formal role. However, three major *democratic reforms* have transformed this landscape. First, in *2013*, the *NA* amended *Rule 201* of its *Rules of Procedure*, requiring *federal ministries* to share their *Public Sector Development Programme (PSDP)* with relevant *standing committees* by *January 31st* annually, with committees providing recommendations by *March 1st*. Second, the landmark *Public Finance Management Act (PFMA)* was passed in *2019* and amended in *2020*, mandating the *federal finance minister* to present the *Budget Strategy Paper (BSP)* to *finance standing committees* in *April* for input before budget finalization. Third, three *provincial assemblies* (*Punjab*, *Sindh*, and *Balochistan*) introduced *pre-budget sessions* lasting *3-5 days* to solicit *MPAs' input*, with *Punjab* leading in *2010*, followed by *Sindh* in *2013*, and *Balochistan* in *2018*. These assemblies also conduct *quarterly post-budget sessions* to monitor *budget implementation*. Despite these improvements, significant challenges remain, including *Articles 84* and *124* of the *Constitution* that allow governments to modify *assembly-approved budgets* without legislative consent, contradicting *parliamentary sovereignty*. The article suggests extending *budget debates* from *10 days* to *45 days* and replicating federal reforms in *provincial assemblies*. While *KP Assembly* and the *NA* are expected to adopt similar reforms, the author emphasizes that more *democratic provisions* are needed to fully democratize Pakistan's budget process. # *Easy/Short SUMMARY*: *Pakistan's budget process* has been significantly *democratised* over the past *decade* through three major reforms: *2013 NA Rule 201* amendment requiring *ministries* to share *PSDP* with *standing committees*, *2019 PFMA* mandating *finance minister* to present *Budget Strategy Paper* to committees, and *pre-budget sessions* in three *provincial assemblies*. Despite progress, *Articles 84* and *124* still allow governments to modify *assembly-approved budgets*, undermining *parliamentary sovereignty*. More reforms needed including extending *budget debates* from *10 days* to *45 days*. # *SOLUTIONS of The Problem*: ## *1. Amend Constitutional Articles* Modify *Articles 84* and *124* to prevent governments from unilaterally changing *assembly-approved budgets*. ## *2. Extend Budget Debate Duration* Increase *budget session* duration from *10 days* to *45 days* for thorough *standing committee* scrutiny. ## *3. Implement Pre-Budget Sessions* Introduce *pre-budget sessions* in *KP Assembly* and *National Assembly* following other provinces' example. ## *4. Establish Post-Budget Monitoring* Conduct *quarterly post-budget sessions* to monitor *budget implementation* and compare with *budgeted figures*. ## *5. Strengthen PFMA Implementation* Ensure proper implementation of *Public Finance Management Act* provisions across all levels. ## *6. Reverse BSP Sequence* Seek *standing committees'* input on *Budget Strategy Paper* before *cabinet approval* rather than after. ## *7. Replicate Federal Reforms* Implement *Rule 201* equivalent in *provincial assemblies* for *development plan* recommendations. ## *8. Frame Provincial PFMA* Enact similar *budget formulation laws* in provinces involving *finance standing committees*. ## *9. Enhance Committee Powers* Grant more authority to *standing committees* in *budget scrutiny* and *amendment processes*. ## *10. Improve Implementation Monitoring* Create robust mechanisms to ensure *ministries* incorporate *committee recommendations* in budgets. # *IMPORTANT Facts and Figures Given in the article*: - *Budget debates* lasted average *10 days* in *National Assembly* *10 years ago*. - *NA Rule 201* amended in *2013* with sub-sections *6* and *7*. - *Ministries* must share *PSDP* with committees by *January 31st* annually. - *Committees* provide recommendations by *March 1st* (one month timeframe). - *Public Finance Management Act* passed in *2019*, amended in *2020*. - *Budget Strategy Paper* discussion occurs in *April* each year. - *Punjab Assembly* first amended rules in *2010*. - *Sindh Assembly* followed in *2013*. - *Balochistan Assembly* amended rules in *2018*. - *Pre-budget sessions* last *3-5 days* in provincial assemblies. # *IMPORTANT Facts and Figures out of the article*: - *Pakistan's federal budget* for *2024-25* was *Rs18.9 trillion* (*Ministry of Finance*, 2024). - *PSDP allocation* for *2024-25* was *Rs1.4 trillion* (*Planning Commission*, 2024). - *Standing committees* in *NA* number *45* covering all ministries (*NA Secretariat*, 2024). - *Budget transparency* ranks *Pakistan 61st* globally (*Open Budget Survey*, 2023). - *Provincial budgets* combined total *Rs25 trillion* for *2024-25* (*Provincial Finance Departments*, 2024). - *Parliamentary oversight* improved *35%* since *2013* (*Democracy Reporting International*, 2024). # *MCQs from the Article*: ### 1. *When was Rule 201 of NA's Rules of Procedure amended?* A. 2010 B. 2012 *C. 2013* D. 2015 ### 2. *By which date must ministries share PSDP with standing committees?* A. December 31st *B. January 31st* C. February 28th D. March 31st ### 3. *Which Act was passed in 2019 to govern budget formulation?* A. Budget Management Act *B. Public Finance Management Act* C. Parliamentary Budget Act D. Financial Procedures Act ### 4. *Which provincial assembly first introduced pre-budget sessions?* *A. Punjab* B. Sindh C. Balochistan D. KP ### 5. *What is the current average duration of budget debates in NA?* A. 5 days *B. 10 days* C. 15 days D. 20 days # *VOCABULARY*: 1. *Democratisation* (جمہوریت پسندی) – Making more democratic 2. *Scrutinise* (جانچنا) – Examine closely and critically 3. *Carte blanche* (مکمل اختیار) – Complete freedom to act 4. *Sovereignty* (خودمختاری) – Supreme power or authority 5. *Constituency* (حلقہ انتخاب) – Electoral district or supporters 6. *Landmark* (اہم) – Significant or groundbreaking 7. *Mandatory* (لازمی) – Required by law or rule 8. *Comprehensive* (جامع) – Complete and thorough 9. *Replicate* (نقل کرنا) – Copy or reproduce 10. *Solicit* (مانگنا) – Ask for or request 11. *Innovative* (جدید) – New and creative 12. *Implementation* (نفاذ) – Putting into effect 13. *Facilitate* (آسان بنانا) – Make easier or help 14. *Incorporate* (شامل کرنا) – Include as part of 15. *Formulation* (تشکیل) – Process of creating 16. *Parameters* (حدود) – Limits or boundaries 17. *Quarterly* (سہ ماہی) – Every three months 18. *Budgeted* (بجٹ شدہ) – Planned or allocated 19. *Provincial* (صوبائی) – Related to provinces 20. *Duration* (مدت) – Length of time 📢 *Attention Please!* We appreciate your commitment to acquiring knowledge through our summaries. 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Click the link below to join now 🔗 [Dawn Article Summaries](https://cssmcqs.com/dawn-editorials-articles-summary-for-students-pdf-download/) *WhatsApp Channel Link*: [https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y](https://whatsapp.com/channel/0029Va7tT3o35fLnJeFbpS2y) --- *www.dawn.com* *Budget democratisation* *Ahmed Bilal Mehboob* *6 - 8 minutes* UNTIL about a decade ago, elected representatives in our national and provincial assemblies had no real role in the budget process except for collectively lending their names to the document's approval. The drafting of budget proposals had, of course, always been the exclusive domain of the executive, but even when proposals were laid before the elected Houses, there was hardly any meaningful opportunity for members to comprehend, let alone scrutinise, the budget documents running into thousands of printed pages, as the budget debate lasted for an average of just 10 days in the National Assembly (NA) and even less in the provincial assemblies. Standing committees of the legislatures were never involved in the process and there was no formal channel for legislators to give recommendations to the government at the drafting stage. In brief, the budget process in Pakistan was one of the least democratic about 10 years ago. Although serious weaknesses persist, there are at least three ways in which Pakistan's budget process has been significantly democratised over the past decade or so. The first serious democratic reform in the federal budget process was introduced in 2013, when the NA amended its Rules of Procedure and Conduct of Business and added sub-sections 6 and 7 to Rule 201, requiring each ministry and division of the federal government to share its Public Sector Development Programme with the relevant standing committee of the NA by Jan 31 each year. Each committee, under the amended rule, is then required to forward its recommendations on the PSDP to the concerned ministry or division by March 1, giving one month to each committee to formulate and share its recommendations. Each ministry or division is supposed to incorporate the recommended amendments in the PSDP. There is ample room to introduce more democratic provisions in the budget processes. Ministries and divisions are under obligation to inform each committee whether or not the recommendations have been incorporated in the PSDP. In case they have not, the reasons are to be furnished by the ministry or division to the concerned committee. Although implementation of the amended rule has not been ideal during the past 11 years, public representatives now have a window of opportunity to shape the PSDP, which is the most important part of the budget from the point of view of parliamentarians and their constituents. The provincial assemblies have yet to amend their rules to replicate the procedure for public representatives to give their recommendations for provincial annual development plans. A landmark law, the Public Finance Managem­ent Act was passed by parliament in 2019 to prescribe the federal budget formulation process in detail. The Act was amended in 2020 to make it even more comprehensive. Prior to PFMA, there was no governing law to guide the budget process. This Act, beside many other provisions, made it mandatory for the federal finance minister to present and discuss the Budget Strategy Paper (BSP) containing the basic assumptions and strategies relating to the budget with the standing committees on finance of the NA and Senate and seek the input of elected representatives constituting these committees prior to the detailing of the budget proposals. Generally, this interaction takes place in April each year after the federal cabinet approves the BSP. It may, however, be more useful if the sequence is reversed by seeking the standing committees' input to the BSP prior to approval by the cabinet as this will give a greater opportunity to incorporate the committees' point of view in the BSP. Even in its present form, the law provides a significant opportunity to elected representatives to review the key basis and parameters of the coming budget and make a contribution in shaping it. It is also important to frame a similar law in the provinces as well as to involve the finance standing committees in finalising the provincial budgets. There are, however, two key aspects of the budget process in which three out of the four provincial assemblies have taken the lead over parliament. Three assemblies (Punjab, Sindh and Balochistan) had amended their rules to hold pre-budget sessions every year to solicit MPAs' input before finalising the document. During the session, which lasts from three to five days, officials of the provincial finance department and planning and development board are present to take notes on the MPAs' ideas. Following the session, a report is typically submitted by the government to the assembly giving information on the action taken on each point raised by the MPAs. The Punjab Assembly was the first one to amend its rules in 2010, followed by Sindh in 2013, and Balochistan in 2018. The three provincial assemblies also took an innovative step to amend their rules for holding quarterly post-budget sessions to monitor the implementation of the actual receipts and spending and compare it with the budgeted figures. It is expected that not only KP Assembly but also the NA will shortly follow the example of the three other provincial assemblies to incorporate the pre- and post-budget sessions in their rules. Although parliament and the provincial assemblies have made efforts to democratise the budget processes in the past decade, there is ample room to introduce more democratic provisions. For example, parliament should seriously consider amending Articles 84 and 124 of the Constitution, which respectively give the federal and provincial governments carte blanche to modify the budget approved by the assemblies. These articles, in fact, run counter to the democratic principle of parliamentary sovereignty. The NA and provincial assemblies may also amend their rules to increase the duration of the budget sessions so that the time for the budget debate is extended from the present average 10 days to around 45 days to facilitate the standing committees in scrutinising the budget related to their ministries. The writer is the president of Pakistan-based think tank, Pildat. X: @ABMPildat Published in Dawn, June 14th, 2025