The local chambers, trade bodies and stock markets representatives do hold pre-budget dialogues with the government officials, in particular with the Federal Board of Revenue (FBR), for sharing inputs. However, too often the dialogue process turns out to be mere social gathering with no significant impact.
Nonetheless, the civil society pressure groups comprising independent analysts, commentators, think tanks, journalists and the business community can still play their role in providing timely inputs to the decision makers in the budget making process. Budget groups work at either or a combination of national, state and local/municipal levels. Some groups monitor the impact of the budget on the poor or develop methodologies to monitor the welfare of specific interest groups such as women and children. The groups may be guided by journalists, activists, academics, former government leaders, business people, consultants and researchers. Budget groups can operate effectively as critical allies of the government.
The budget is the most important and comprehensive economic policy instrument. It acts as a planning tool, a control tool, and a political tool. The budget year runs from July 1 to June 30. The budget circular is issued in October to all ministries, and it goes through a very cumbersome process until its final draft is ready for the approval of the cabinet in May/June. This draft is presented in parliament and the Senate for debate some times in June. After the approval of the parliament, the prime minister authenticates the schedule of authorised expenditure.
The budget cycle is the timeframe in which the annual budget is formulated and, presented, enacted into the law and executed. Typically the budget cycle begins 20-21 months prior to the start of the fiscal year for which funding is requested and runs through the end of the fiscal year.
Budget documents, after tabling in parliament in June every year, are usually published and frequently widely debated upon in the mass media. Thus the media become eyes and ears of the civil society. Therefore timely but accurate reporting can positively influence all the stakeholders involved in the budget making process.
According to the Pakistan Institute of Legislative Development and Transparency (PILDAT), the Baseline Report of January 2010, parliament consumed 10 days in debating the budget 2009/10. In 2003/04, parliament consumed only five days, the shortest time spent as against the highest 23 days back in 2005-06, to pass the budget.
The report further says that the political parties don’t generally make any organised effort to hold pre-budget brainstorming sessions-this maybe due to the fact that most of the legislators don’t have access to the information before the budget session. To add to the report findings, it can be said that they lack the capacity and the will to do that.
It has also been observed that once the budget is presented in parliament, the legislators because of shortage of time and having no prior-knowledge about the budget contents cannot actively participate in the budget debate and thus are left with no other option but to sit quiet during the session and ask questions for the sake of it. According to the PILDAT report, it was in 2003/04 that only 48 members participated (the lowest) in the budget debate as against the 229 in 2008/09 and in the last year 170 members participated in the budget debate. (See the chart).
The report further indicates that some parties do hold meetings during the two-day break and finical experts brief the legislators on the contents of the budget. And that the legislators receive little or no institutional support either from their party or the government, hence, their role has remained very minimal in the pre-budget session. The political leadership, may it be is in the opposition or in the government, is always at the mercy of the bureaucracy.
How much and how the public money is going to be spent by the government is all that we are interested in. The people are more interested in knowing, if the budget, can help bring down the prices of basic necessities. They also want to see what kind of relief is going to be given to the poor and the lower-to-middle groups. The budget money can affect the standards of living of citizens and in particular: development of health and education, road and communication sectors and those who are disadvantaged.
There are three stages of budget debate that are discussed here. The ex-ante budget debates perhaps can play the most important role. These debates may take place in mass media, or by holding conferences, workshops, seminars, symposiums, etc. These events can act as ice-breakers. The focus of such gathering is supposed to be on and around the most deserving and deprived segments of economy; for example, energy management, poverty alleviation, education, health, social safety nets, good governance, and the deteriorating law and order situation.
The special groups of civil society can identify the gaps and can indicate where more or fresh allocations should be made. The baboos along with the minister of the relevant ministry and the legislators can also be invited in order to apprise them. Thus while working on the budget proposals, the policymakers and the legislators, can include one or more good civil society suggestions in the budget. However, at the moment holding such dialogues is a very rare phenomenon and their impact is seen nowhere.
During the budget session, the print and electronic media plays a very active and constructive role by holding healthy and lively debates. Heated debates between the opposition, independent analysts, and the government representatives are watched with great interest and these create a sense of participation among the civil society members and the people become more aware about the current economic issues than ever before.
The ex-post budget is related to monitoring and evaluations of the budget targets set for the ongoing fiscal year. Again the process can act as a watchdog looking over how the approved money has been spent and the milestones achieved so far. Timely and accurate reporting by the media, think tanks, and other civil society organs can alert the relevant government circles, if things are not going on track. One of the difficulties that the members of civil society can face, whilst reporting on the progress, is having access to information.
Often, the officials are not willing to share the inside information. However, with the increasing use of IT, there is more information available on the net as compared to the past. One more thing that can aid the monitoring process is holding of a monthly or quarterly briefing by the relevant ministry to report on the progress of budgeted projects.
The budget debating process should run year-long so that the civil society can have its message heard in the relevant quarters time and again and that they should continue to work as a watchdog to monitor the progress of budgetary targets. However, when the budget is made under the directives of the IMF, the task of democratically elected government becomes even more difficult. Hence, we as members of civil society must act in time to relay our voice to the IMF and others as well.
Source: http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/in-paper-magazine/economic-and-business/civil-societys-voice-in-making-budget-540
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