ISLAMABAD: Talks with the International Monetary Fund (IMF) for the next programme, with an agreement on targets still pending, may account for the delay in the finalisation of the budget strategy paper (BSP).
An official on condition of anonymity told this correspondent that the reason for not finalising the three-year budget strategy paper is that the government is still negotiating with the IMF, adding that without finalising negotiations with the IMF, BSP would be meaningless as it has to be based on macroeconomic targets agreed with the Fund.
The official added that even broad contours of the budget for the next fiscal year have not yet been shared with the federal cabinet and this is highly unusual.
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In previous years BSP used to be finalised well before the budget presentation and shared with the federal cabinet by mid-May. The BSP is important because it highlights government policies and priorities for the next three years.
A senior official of finance ministry said that he is unaware whether the budget strategy paper has been prepared or not but agreed that in the past at least two weeks before the budget, BSP was submitted to the federal cabinet for approval and subsequently shared with the standing committees of both the houses of parliament for feedback and recommendations.
He added that BSP outlines government policies in terms of revenue, expenditure and other macroeconomic targets for the medium-term and primary objective of BSP is to facilitate medium term policy-formulation based on reliable projections of revenue and expenditure in view of the historical trends, as well as, new measures, specific needs, and the government’s strategic priorities.
Copyright Business Recorder, 2024
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