Rs19 trillion federal spending sparks Senate alarm over 24 ministries

Islamabad: A Senate subcommittee warned that the federal government is spending around Rs19 trillion against total tax and non tax revenue of about Rs20 trillion and called for the abolition of 24 federal ministries and institutions dealing with subjects transferred to the provinces.

The Senate Functional Committee on Devolution Subcommittee, led by Senator Zamir Hussain Ghumro, said keeping provincial subjects at the federal level was adding to the country’s financial burden and called for the constitutional devolution plan to be implemented fully.

Senator Zamir Hussain Ghumro said the federal government was spending almost all of its tax and non tax revenue and described the continued presence of 24 ministries and institutions dealing with provincial matters as a major drain on public funds.

The committee said the federal government should restrict itself to subjects that belong to it under the Constitution and transfer devolved subjects to the provinces.

It rejected the Cabinet Division’s explanation that some of these ministries and institutions were needed for coordination and international commitments. The committee said the same explanation had already been rejected at its previous meeting.

The committee said that at its August 17 meeting it had directed that 24 ministries and institutions dealing with provincial matters and subjects linked to the Council of Common Interests should be abolished, but the Cabinet Division had again presented the same reasons.

Senator Zamir Hussain Ghumro directed the Cabinet Division to bring the matter to the notice of the Prime Minister and submit a fresh compliance report. He warned that the Prime Minister could be called before the committee if the required action was not reported.

The committee also called for a major review of the proposed privatisation of power distribution companies.

Senator Zamir Hussain Ghumro questioned the need to privatise the companies, particularly when recovery rates were reported at 100 percent in Islamabad, 98 percent in Faisalabad and 99 percent in Lahore.

The committee was told that the federal government was planning to privatise power distribution companies under its jurisdiction and that the proposal had previously been considered by the Council of Common Interests in 2011.

Senator Ghumro argued that power distribution should be handled according to the constitutional system of devolution and that provincial governments have responsibilities relating to electricity distribution under Article 157 of the Constitution.

The committee recommended that the proposed privatisation of power distribution companies should be placed before the Council of Common Interests again for fresh consideration.

Senator Jan Muhammad Buledi said the 2011 CCI decision could not simply be treated as final because the Council had been reconstituted several times.

The committee also raised questions over federal control of police service matters in the provinces.

Senator Ghumro said police had become a provincial subject after the relevant entry in the Concurrent Legislative List was removed and called for police related service matters to be transferred to the provinces.

The committee directed the Establishment Division to transfer such matters to the provinces and submit a compliance report within two weeks.

The committee proposed that only ministries dealing with genuinely federal subjects should remain with the Centre. These included Defence, Foreign Affairs, Finance, Commerce, Communications, Maritime Affairs, Science and Technology, Law and Justice and Parliamentary Affairs.

The committee also discussed the future of the Capital Administration and Development Division. Senator Ghumro noted that CAAD had been created through a notification dated March 31, 2011 and later abolished, after which federal ministries and departments took over education, health and other public services in Islamabad.

He raised concerns about the performance of the federal government in providing services to Islamabad residents and recommended consideration of restoring CAAD.

The committee was informed that the Council of Common Interests Secretariat had moved a summary for calling a CCI meeting and its reconstitution as directed by the committee, but the summary was still pending with the Prime Minister.

The committee recommended sending a fresh letter to the Prime Minister for transferring CCI matters to its permanent secretariat and creating divisions and departments that would be answerable to Parliament.

The committee also said all provinces should receive their constitutional rights in broadcasting and telecasting. It directed the Ministry of Information and Broadcasting to consider assigning these functions to the provinces under Article 159.

The committee further directed that print media functions, including ABC, should be transferred to the provinces, saying the relevant entry in the Concurrent Legislative List had been removed.

On mineral oil and natural gas, the committee raised serious concerns over the equal and joint ownership rights of the provinces and the federal government under Article 172(3).

The committee said the provinces had not been given the representation and ownership rights that had been discussed earlier. It said a recent letter concerning the formation of the Board of Directors of Pakistan Petroleum Limited did not invite nominations from the provinces.

The committee described this as a serious violation of the constitutional framework and said a breach of privilege could be initiated against the Secretary and Special Secretary.

The committee also received a briefing on Thar coal based power plants. It was informed that six such plants are currently operating, with four running entirely on Thar coal while two are using Thar coal at 33 percent and 20 percent respectively.

The committee decided to summon the Thar Coal Energy Board and the chief executive of the relevant Thar power plant at its next meeting for further briefing.

The committee concluded by reiterating that federalism, provincial autonomy and devolution must be implemented in their true spirit and that all provinces should receive their constitutional rights, representation and ownership.