Elitist budgets

LAHORE: For several decades we have seen that national budgets favour the elite. Ordinary people are usually asked to bear hardship for the sake of the country. Experts believe that this year’s budget will be no different as the rulers belong to the elite class.

We see the size of the national budget increasing every year much higher than the additional taxes the state intends to collect. The fiscal deficit naturally keeps increasing. There has never been a serious effort to decrease perks and facilities extended to the country’s elite. In a recent TV show, economist Dr Hafeez Pasha revealed that the government allocated Rs4,500 billion for perks and facilities, including tax exemptions, for the elite class. We can reduce our fiscal deficit significantly if these exemptions and concessions are withdrawn. The elite class is not more than 4.0 per cent of the entire population of 240 million. Currently there are 110 million people living below the poverty line -- 46 per cent of the total population of the country. For these poor, the allocation against the Benazir Income Support Programme is only Rs450 billion.

Our planners must realize the rich need no concessions. They should not be permitted to import processed foods, chocolates, confessionary items, edible oil or dairy products at whatever high duty the government charges. When a majority in Pakistan can consume ‘Made in Pakistan’, there should be no exception for a tiny section of society.

We need to save around $2 billion in foreign exchange reserves yearly.Why do we allow the import of bullet-proof vehicles for a few thousand rich people when the rest of the population has no security? Why should we waste our already scarce foreign exchange on the import of used cars, particularly luxury vehicles?

We are a poor nation, managing our economy purely on loans. No one in this country should enjoy a luxurious life on the state’s expense. This is the time to reduce the salaries and perks of government servants above Grade 17 by 20 per cent and gradually to 50 per cent for Grade 22 (even after a 50 per cent reduction they would take home a hefty amount of salary). The cuts should apply to all branches of the government. The president and the prime minister; chief ministers; provincial and federal ministers; and governors must cut their expenses by 50 per cent and shift to three-bedroom houses instead of living in mansions where maintenance and power cost the state a fortune.

The government should also muster the courage to enforce the law in the case of sales tax registration. There are three million industrial power connections in the country. The law states that every consumer having industrial connection must get registered in the sales tax regime.

It is unfortunate that hardly 70,000 industrial consumers of power are registered in the sales tax regime. The FBR is going after tax evaders, and it is good; but why does it continue to ignore this segment that is openly flouting the law?

Some economists blame the entire nation for the precarious economic condition we are in. It has long been established that Pakistan is an elitist state, and power remains in the hands of the tiny elite.

The rich include top bureaucrats, big landlords, industrialists that run large industries, top traders, among others. They are hardly one million in total and if we add additional four family members (family size is 3-5 people), the total comes to five million. Contrary to thus, the remaining 110 million poor live like caged animals, having no voice or liberty.