Getting the public’s opinion on Budget 2016
“The result of imposing indirect taxes is that the common man continues to suffer. Citizens belonging to the middle class are burdened by price hikes for household products, consumer products, cosmetics, cigarettes, car prices, electronic devices, home appliances, etc.”
The Economic Survey disappointed the nation by unveiling the fact that the government once again failed to achieve its Gross Domestic Product (GDP) target for the fiscal year 2015-16. The GDP growth settled at 4.7 percent instead of the targeted 5.5 %.
The Finance Minister Ishaq Dar, while unveiling the Economic Survey 2015-16 the other day, said that 29.5 % of Pakistan’s total population was living below the poverty line.
Pakistan gets a national budget every year and the common perception of the citizens seems to be that the budget indicates an increase in price for almost every sector.
DNA asked the public how they thought this year’s budget was going to affect them.
“What could be expected from a budget that was approved over video link? The Finance Ministry is singing accolades of how well their performance has been while the truth is far from it. The expected rise in prices of food based products, the twofold taxation on milk and dairy products, the continuous joke that they play with oil prices, small business owners like me who already have a strict, competitive atmosphere are forced to rebrand ourselves accordingly” said Usama Mansoor who owns the “Collections” boutique at Fortress, Lahore.
Usama said that bigger industrial giants can sustain the loss, by closing down a few points of sales or layoff employees; on the other hand, small business owners are forced to face the consequences on our own and prepare for a less profitable fiscal year.
“People are sceptic about whether the budget would bring positive changes in the services sector. They believe that the larger share of the budget is used to fund the military or other government sectors, whereas, the education sector, hospitals and other services are deprived of the necessary funds.”
“How does the budget affect me? I receive a fixed monthly income from my parents to manage transportation costs and expenses for food” said Nabeel Imtiaz, an architecture student from COMSATS University in Lahore. He was of the opinion that everyone is well aware of the quality of our public transport but many students with limited budgets are left with no other option but to commute from one point to another by changing different buses and routes.
He further said that if the prices increase (even just by a few rupees), he will have to change more routes, and these extra rupees combined together make up a big amount that will have to be allocated by cutting down on food expenses.
People are sceptic about whether the budget would bring positive changes in the services sector. They believe that the larger share of the budget is used to fund the military or other government sectors, whereas, the education sector, hospitals and other services are deprived of the necessary funds.
“The price of basic commodities usually increases after the budget is announced. This directly affects the standard of living because the increase in prices is not met with an increase in income” said Ayesha Imtiaz, a lecturer of commerce at Government APWA College for Women.
“Money runs everything and it most definitely runs the scientific enterprise. You see science is expensive; a normal 3 months undergrad research project can cost anything between 2 to 6 lac per research student. Governmental research budgets also play an important part but sometimes they are completely left out of the equation as private funding often times, presents itself as a better funding option than the government” said Rayyan Tariq Khan, an undergraduate researcher in structural biology.
“The Panama Leaks issue indicates that our leaders are investing abroad rather than investing in the industries of their own country. They find loopholes to evade payment of taxes which in return leads to the working class facing the brunt” said an IT expert on the condition of anonymity.
“Tax evasion is a major aspect why the upper class continues to be unaffected by the budget and the lower classes strive to maintain a lifestyle that barely includes basic pre-requisites. The government relies on the revenue earned from the sales tax imposed on basic goods. The working class is forced to pay a higher price for necessities such as toothpaste, soaps, and eatables. This is no longer practised in any other part of the world” said Nazir who works in a research institute in Lahore.
The result of imposing indirect taxes is that the common man continues to suffer. Citizens belonging to the middle class are burdened by price hikes for household products, consumer products, cosmetics, cigarettes, car prices, electronic devices, home appliances, etc.
Income inequality continues to grow the gap between the rich and poor as the working class is pressurised with unconventional taxes. The people are certainly not satisfied with the government’s efforts to achieve economic growth. They believe that the resources and funds are not being allocated effectively.
