ISLAMABAD: The Senate Standing Committee on Finance and Revenue, on Thursday, passed the Fiscal Responsibility and Debt Limitation (FRDL) Amendment Bill 2016 which has been proposed in the Finance Bill 2016.
The purpose of this bill is to make financial provisions for the year beginning on the first day of July 2016. A Senate Committee met here with Salim Mandviwala in the chair to consider the bill.
In the beginning of the current week, the committee had opposed the bill, terming it an unconstitutional act. Then the finance committee took strong exception to the government’s move to amend the Fiscal Responsibility and Debt Limitation (FRDL) Act of 2005 through the Finance Bill 2016.
Committee of the view that the introducing amendments in the FDRL through Finance Bill were an unconstitutional move and these amendments should be deleted from the proposed Finance Bill. Both houses of parliament had passed the FRDL Act in 2005 which was why the law could only be amended by National Assembly and the Senate separately.
In beginning of current month, the committee also opposed inclusion of foreign trusts, amendments to Debt Limitation Act and valuation of property through Finance Bill 2016 and asked the government to delete these clauses from the proposed money bill.
A few days back, committee proposed a few amendments in FRDL to make the Act more economic reality of the country rather than on the basis of constitutional provision. There was a need to put restrictions on fiscal deficit besides revenue deficit.
The jurisdiction of FRDL should be enhanced from federal government to all provincial governments. The increased expenditures on social & poverty sector should not be at the cost of increased public debt.
However, in Thursday’s meeting the committee was informed by the Ministry of Finance representatives that almost all the recommendations of the committee had been met and proposed amendments had been made part of the Act.
After being satisfied, the committee passed the bill and enabled the government to get first victory on parliamentary forum towards the passage of Finance Bill 2016-17.
