New budget pushes poor to the edge of survival

LAHORE: The income of a majority will not increase with the budget, but expenses will definitely jump up, increasing the depth of starvation for the poor who have been living on low quality diet since the last fiscal. This will also mean that other basic needs will now just be a dream for the poorer segments of our society.

Those working in big cities face multiple issues other than food. Most of the workers have moved from rural areas to the big cities in search of work.

They do not have a place of their own to live in. They have to rent a house or even a 12x8 room to live with their families.

They share a toilet with other tenants and cook food at a corner in the room. These small houses in slums do not have piped gas connection.

They have to use expensive LPG, or kerosene oil as kitchen fuel.

The prefer localities nearer to their workplace, but more often they get rented houses at quite a distance from their place of work.

They have to use public transport that is another unbearable expense as walking to the workplace is not feasible and will drain their energy, which is needed to perform efficiently at their place of work.

This budget has hit them doubly; the devaluation of rupee has already hit the rates of almost all daily use items. The new tax measures in the budget have further aggravated the situation as all new taxes have been passed to the consumers.

The federal government has increased the minimum wage to Rs17,500/month from Rs16,000. The official minimum wage though is given to only around 20 percent of the entire workforce.

The state is fully aware of this fact but does not have the writ to get minimum wage implemented. We must also bear in mind that there is usually one bread earner in a family.

However, even with the current minimum wage, it is not possible for a family of 6.5 persons which is the national average family size; to manage the bare minimum monthly expenses.

The minimum house rent of a room in poor localities is Rs3,500 per month. The minimum electricity bill averages Rs500 (no increase in power tariff for small consumers).

Kitchen fuel (LPG cylinder or kerosene oil) consumes Rs1,000 minimum. Water charges are Rs200 and transportation cost averages Rs60 daily (Rs30 to go to work and Rs30 back home). This comes to Rs1,560 for 25 days a month.

These bare minimum expenses consume Rs7,760/month. The family is then left with Rs9,740 out of the minimum wage of Rs17,500 for food, illness and educational expenses.

Naturally food is the first need. A minimum wage earner would be living below poverty line on this income.

According to the government data, an average Pakistani consumes 110kg of wheat per year or 9.166kg of flour in a month.

A family of 6.5 would thus consumes 59.58kg wheat flour per month which would cost Rs3,098 at Rs52/kg.

A family requires 4kg of edible oil at 20 grams per person per day. It would now cost the family Rs1,100 per month.

Assuming that the family consumes minimum quantity of vegetables like onions, ginger, garlic and one main vegetable after alternate day even then it would add a burden of Rs2,700 to the family budget at Rs90 per day.

Add another Rs1,100 on pulses, spices, salt, match box etc and Rs1,500/month for half litre milk daily for small children or old patients in the family. Two kilogram of sugar would now cost Rs150.

The above expenses on food are barest minimum in which the family is deprived of quality foods like meat, mutton, fish or chicken meat, eggs, butter or fruits, and sugar.

Despite this, food expenses listed above total Rs9,640 which is exactly 55 percent of the recently enhanced minimum salary of Rs17,500.

The family is left with Rs100 only that is not enough for any health emergency, or for educational needs of the children.

The family cannot entertain any guest or if it did, some member of the family would have to go without food that day.

National budgets, particularly the one imposed this year cannot lower the miseries of these families. Moreover, in a declining economy, workers are more worried about retaining the jobs in hand instead of aspiring for higher income.

At current food intake, they would continue to become less productive and stunting rate in their children would further enhance. This would be a pity because our prime minister has time and again vowed to address stunting in children.