Budget-making needs indigenous wisdom

Budget-making is an exercise designed to help countries allocate national resources efficiently and according to the needs of country. It assists governments in creating a balance between expenditure, revenue and pave the way for achieving long-term goals. Countries engage high-quality professionals for budget-making. They advise governments how to create a balance between revenue and spending, productive and non-productive allocations and social protection and livelihood-based poverty alleviation programmes.

Regrettably, political and non-political elite of Pakistan have been unable to comprehend this philosophy with country ending up paying price of wrong strategies in the form of worst economic crisis of its history.

Economy is trembling under debt. Growth is almost touching zero. Poverty is on the rise. Food insecurity is further complicating the situation. Pakistan is running from pole to pole to secure financial assistance to divert these crises, without much success. Political and non-political elite have to realise countries cannot be run like this and a change is needed.

The political elite must understand if we failed to change, the results would be even more disastrous for Pakistan. Thus, there is no option except to change.

First of all, political and non-political elite should stop selling old wine in new bottle. There is need for structural overhaul of the system. The system must be rebuilt on the principles of inclusiveness and people-centric approach.

Second, budget-making process should be led by professionals. It does not mean bureaucrats or expats. It means economists, political economists, development practitioners and field experts like agriculturists, engineers etc.

Indigenous wisdom should be the guiding force. Pakistan must stop importing expats or engaging donor-driven experts. All these persons cannot help Pakistan overcome challenges, as they do not have good understanding of ground realities.

Third, politicians should also work to minimise the role of bureaucracy in the budget-making process and encourage professionalism.

Unfortunately, budget-making is dominated, rather controlled by bureaucracy. Bureaucrats, with a few exceptions, do not have much understanding of political economy. They are only interested in pleasing their bosses not the people. This practice should be changed. It is advised professionals should be given full authority to devise budget and related policies.

Fourth, all the political parties must have consensus that budget-making would be apolitical process. Economic rationale will lead the process not the politics. For that purpose, the political and non-political actors should sit together and devise economic vision for Pakistan like Vision 2047. The vision should provide basic framework for economic development and future guidelines for the budget-making.

The government should seek consensus among all the political and non-political actors to ensure continuity. There should be no credit game and no actor should claim sole leadership. All parties/actors should be treated equally and everyone should be given equal credit. All stakeholders consider making the Vision 2047 part of the Constitution to ensure continuity avoiding politics.