Real state of the economy
Much of budget time formality is just that – formality. The budget document is complete, with the executive’s approval of course, well before cabinet green-lights it just ahead of the finance minister’s final budget speech. Besides, there wouldn’t be any time for last minute changes if it were presented to the PM literally at the last minute. All that Nawaz Sharif did via video link, therefore, was just fulfil an exercise because tradition, and the constitution, demands it. But the cabinet, too, made sure that the session was not about much beyond symbolism. There were only cursory arguments on budget figures, and a lot of goodwill messages for the prime minister.
Perhaps it is time that, just like democracy, our budget making matures a little as well. It continues to be a politically correct statement with little relevance beyond the budget day itself. Nobody, even in the finance ministry, really believes any of its important benchmarks or targets will ever be met. Each time there is a downward revision of practically all important targets, yet each subsequent year the bar is set higher, only to be brought down again. If that makes sense, it has not been adequately explained beyond the confines of the finance ministry.
Broadly, the government is still unable to raise taxes or exports, yet has still reduced the deficit target to 3.8 percent in the upcoming fiscal. And resorting to unconventional taxation – and then praising it – while the net remains small and doing practically nothing to add value to exports and still expecting growth to expand and the deficit to shrink is purely a novelty of Darnomics. It has no takers outside Dar sb’s area of influence.
If PML-N really wants to win points on the economy – which it will have to as the election nears – then it must finally get revenue generation in order. Then it must spend what it can to completely reorient the export sector. And only then, with more coming from earning than loans, will GDP begin to turn in intrinsic terms. And if that is too much for Dar sb, perhaps he should open himself to better counsel on occasion.
The budget is more of a 'formality' like says the Editorial. Getting nod from the ailing PM lying in ICU, is not only embarrassing, but an exercise in futile. Le de kar aam aadmi hi qurbani ka bakra banega. Tax-net they can not expand, flight of Foreign Exchange from the country will not stop so far money-mules like Ayan Ali are sponsored by very high Officials. It is a budget for the rich by the rich.
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