Balanced budget linked to political stability

LAHORE: Stability in political and economic situation of country is not seen which is also raising questions that a balanced budget up to public expectations seems to be impossible. These views were expressed by the experts in the Jang Economic Session on ‘Public expectations with last budget of the government’. The panellists were Dr Qais Aslam, Hussain Ahmed Sherazi, Dr Nadia Tahir, Waheed Raza, and Pervaiz Hanif while the session was hosted by Sikandar Lodhi.

Dr Qais Aslam said that 40 percent of budget was spent on debt servicing to end the loan culture besides discouraging corruption, misuse of resources and encouraging the taxpayers and bring the non-taxpayers in tax net. He said increase in revenue generation and economic growth should not be compromised in the budget for betterment of the country.

He said that the provincial governments should also spend 80 percent of their budgets on social sector. He said loan dependency could be ended by sending skilled youths abroad and facilitating the overseas Pakistanis.

Hussain Ahmed Sherazi said if the new budget will be like past budget then it will be worthless while there is a need to present a budget which protects public economically and socially besides improving the economic growth.

He called for creating a balance in income and expenditures along with spending on clean drinking water, education, health and other basic civic facilities not only on infrastructure development. He suggested reducing the indirect taxes rate to bring down the edibles prices.

Dr Nadia Tahir said the incumbent government will present the 6th budget in which it smartly defers the decision of approaching the IMF to caretaker setup. She said next budget will be election year budget so no reforms are expected. She said that the budget should be focused on revival of manufacturing and industrial sectors. She said promises of new prime minister of single tax system, reduction in tax rate and tax reforms were not be implemented. She called non-filing of tax return as a crime and added that long-term reforms were required to end the issue of filers and non-filers. She suggested double taxation system, reduction in tax rate and broadening the tax net.

Waheed Raza said that protests and strikes had pushed the country backward and increase in loans were alarming. He said that budget should be prepared with the consultation of all stakeholders. He demanded the government to fix its priorities and end the culture of forget the public and its election slogans after election. He suggested improving the public sector education institution as education has become a business and the public was compelled to buy it.

Pervaiz Hanif said that a balanced budget up to public expectations seems to be impossible. He demanded the government to first revisit the priorities keeping the public issues insight then make a budget for next fiscal year. He said current political situation explains that there is no one to resolve the public issues; so some changes in past budget will be made and a new budget will be presented. He said debt services burden on public will further increase while reduction in tax to GDP ratio was a crucial issue. He called for creating vision among public to resolve the national issues. He demanded serious efforts to bring back the looted money to Pakistan.