The federal government is expected to announce significant measures in the 2024-25 budget aimed at reducing expenses. One of the major changes includes cutting down on various expenses, including pensions and funding for provincial development projects. Moreover, the government plans to share the cost of the Benazir Income Support Programme (BISP) with the provinces. Here’s all you need to know about the proposed changes and their impact:
Proposed Measures in the 2024-25 BISP Budget
The measures recommended by a panel to the Prime Minister include:
- Cutting Pensions: Except for pensions given to defense, civil armed forces, and police personnel, pensions are set to undergo major cuts.
- Stop Funding for Provincial Development Projects: The government plans to cease funding for provincial development projects.
- Cost-Sharing for BISP: The government intends to share the cost of the Benazir Income Support Programme (BISP) with provinces.
The PM Committee’s Recommendations
Last month, Prime Minister Shehbaz Sharif formed a seven-member committee to develop a practical plan for reducing government expenditure. The committee is comprised of:
- Deputy Chairman of the Planning Commission (Chairman)
- Secretary, Cabinet Division (Member)
- Secretary, Finance Division (Member)
- Rashid Mahmood Langrial, Additional Secretary Incharge, I&P (Member)
- Kaiser Bengali (Member)
- Farrukh Saleem (Member)
- Muhammad Naveed Iftikhar (Member)
The committee’s terms of reference include:
- Reviewing previous reports and progress made in downsizing the federal government.
- Formulating a strategy and implementation plan for remaining recommendations.
- Proposing any other measures that could help reduce government expenditure, such as those related to the Public Sector Development Programme (PSDP) and pension schemes.
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According to the committee’s recommendations, implementing the proposed measures could potentially reduce the government’s expenditure by up to Rs. 300 billion per year.
Why is the government planning to share the cost of Benazir Kafaalat with the provinces?
Sharing the cost of Benazir Kafaalat with provinces is part of the government’s efforts to reduce its expenditure and ensure more efficient spending.
How will the proposed measures affect government expenditure?
The proposed measures, including cutting pensions and stopping funding for provincial development projects, are expected to reduce government expenditure by up to Rs. 300 billion per year.
Conclusion
The proposed measures in the 2024-25 budget aim to significantly reduce government expenditure. With tough decisions on cutting pensions, stopping funding for provincial development projects, and sharing the cost of the BISP with provinces, the government aims to save up to Rs. 300 billion per year.