‘Budget is not people-friendly’

Rawalpindi: The business community reacting on the recent budget 2023-24 said that no clear policy has been formulated regarding deficit control and debt repayments. A mini-budget will not be accepted in the name of repayment of IMF or World Bank loans, says a press release.

It is not a people friendly budget rather it is a pre-election budget, these views were expressed in their reaction on the budget by Zahid Bakhtawari, Sirajuddin, Sheikh Siddique, Chaudhry Iqbal, Khawaja Asad of organisation Tajran Pakistan and Pakistan Chemist and Druggist Association in a joint statement. Setting an example of simplicity, the government should first adopt austerity measures, cut its own expenditures to support and revive the economy national economy. The expenditures of members of parliament, federal ministers should be reduced. People are under the burden of inflation and country’s economy has already shrunk. Revolving debt is at an all-time high, how will it be repaid? The current rate of inflation is 38%, while the inflation of daily food items has increased by 48%.

Later, under the pressure of the IMF or the World Bank, mini budgets are often imposed on the people, which would not be acceptable to people and the business community in any case. The increase in ad-hoc relief for government employees is a good decision. But a seventeen and a half per cent increase in pension is a peanut. Local industries were encouraged in the budget, no new taxes were imposed. How much relief the business community will get in the recent budget will be clear in a couple of days. But there is no clear information about the collection of taxes.

Zahid Bakhtawari said there are some questions in our mind that how will the tax revenue be obtained, how will the external debt be reduced? How inflation will be controlled, nothing has been mentioned in the budget. How the foreign loan of $28 billion would be returned in one year, where will the money come from? How will the loss of Rs600 billion be controlled? Revolving debt is at an all-time high, how will it be repaid? How will the revenue of Rs9,200 billion be collected.

The demand of the business community was that the tax net should be increased. No steps have been taken to increase it in this budget. The entire burden of this will fall on the existing tax payer, which is a move tantamount to utter injustice. The current rate of inflation is 38%, while the inflation of daily food items has increased by 48%. The government has announced that it will bring it up to 21%. More appropriate measures should be taken for the agriculture sector. The government does not have any effective tax collection mechanism.