Appropriation Bill 2014 challenged in Supreme Court

Saturday, 2 November 2013 00:00 -     - {{hitsCtrl.values.hits}}

  • CPA petition fixed for hearing on Monday
For the second consecutive year, the Government’s estimate of expenditure has been challenged in the Supreme Court after it was placed on the Order Paper of Parliament on 22 October. The Centre for Policy Alternatives (CPA) and its Executive Director yesterday challenged the provisions of the Appropriation Bill for the financial year 2014 as being unconstitutional. In its Petition CPA challenged the constitutionality of Clause 5, 6, 7 and 2(1) b of the Bill. Clause 5 and 6 of the Bill permits the Secretary to the Treasury or any authorised officer to reallocate funds between heads/programmes without prior permission or subsequent ratification by Parliament. Furthermore Clause 7 permits the Finance Minister, with the approval of the ‘Government’- as opposed to Parliament- to withdraw monies allocated to a particular purpose, if he thinks such monies are not required. Clause 2(1)(b) of the Bill grants blanket authorisation to the Executive to raise foreign or local loans up to Rs.1100 billion (in the next financial year) without any requirement for Parliament to scrutinize and approve the terms related to the raising of each of such loans. The Petition contended that the Bill amounts to a clear violation of the Constitution which mandates that Parliament shall have full control over Public Finance. CPA said it was concerned that the proposed Bill is part of a continued effort to denude Parliamentary oversight over public finance which is essential to promote accountability and transparency in the manner in which tax payer money is utilised. The resulting position would be that Parliament would be rendered impotent to curb the excesses of the Executive arm of government, and thereby consolidate Executive control over the other arms of government. The case is set to be heard before a divisional bench of the Supreme Court on Monday (4). CPA has on several occasions in the past challenged Bills- including the Appropriation Bill for the financial year 2013- which had a direct impact on Parliaments full control over public finance. The said same provisions were challenged by CPA and its Executive Director in 2012 and subsequent to the determination by the Supreme Court the budget had to be passed by a majority of two-thirds of the whole number of Members of Parliament voting in favour of it.

COMMENTS