WHILE the budget-making process for the next fiscal year has been in progress since second week of February, some consensus is also emerging among likely coalition partners--the PPP, PML(N) and ANP — to opt for ‘non-conventional measures’ to provide some relief to the people.
PPP Co-chairperson Asif Zardari, PML(N) leader Mian Nawaz Sharif and ANP President Asfandyar Wali are said to have agreed to adopt a fresh approach to tackle the sky-rocketing prices and other major economic problems.
The three leaders, however, believe that it will not be an easy sailing for the new government to” revive the economy.”
“There is a consensus among us that we will have to introduce non- conventional measures in the next budget not only to revive the economy that had been destroyed by the previous government, but also to offer some relief to the poorer classes”, said former PPP finance minister Syed Naveed Qamar.
He told Dawn that consensus also exists among the three parties that new resources will have to be generated without introducing new taxes. “We need investment, we need money and we need new economic policies”, said Mr Qamar, who is also the PPP’s former privatisation minister.
“We are living in a difficult period and this demands non-conventional measures to help the poorer segment of the society including the middle and the lower middle classes”.
He was not aware know how much the budget could be squeezed and how much new financial resources could be mobilised to clear, what he termed, the ‘mess’ left by the PML(Q) government. “Our effort would be to cut the non-development budget to manage new resources”.
Former finance minister in the last PML(N) government Ishaq Dar, when contacted said it was too early to say any thing about the formulation of new economic policies by major parties in the National Assembly.
When reminded about the proposed non-conventional measures as hinted by Syed Naveed Qamar, Mr Dar said it would be advisable to protect the poorer classes from price hike and other pressing economic issues. “We certainly want a consensus on economic issues and this will be good for all the three major political parties of the House”, said Mr Dar who had also served as the minister for commerce during the second tenure of the PML(N) government.
He reiterated his party’s position that PML(N) was not interested in sharing ministries and wanted to support and help PPP in the formulation of new economic policies aimed at promoting local and foreign investment by encouraging and helping the investors.
Mr Dar felt that it was difficult to come up with any strategy quickly to deal with the economic issues. “Currently we are trying to develop a roadmap for our future economic policies”, he said hoping that consensus will continue to be developed among the PPP, PML(N) and ANP to pull the country out of the present economic crisis.
By the time new budget was announced, some concrete work would have been taken on major economic issues, he said. He agreed that non- conventional measures were needed to provide some relief to the common man.
Additional Secretary (Budget wing) of the ministry of finance Mr Ayub Tareen told Dawn that the priority committee of the ministry of finance and the Planning Division were finalising a detailed ‘working paper’ on the basis of the proposals being received from various ministries and divisions.
The budget meetings will be completed by the second week of April when recommendations of the priority committee will be placed before the National Plan Coordination Committee (NPCC). Later, final recommendations will be sent to the National Economic Council (NEC) for approval.
Mr Tareen said preparations for new budget were always started in February irrespective of which government was ruling the country. “Our job is to finalise budget proposals the rest is left with the government to decide any thing”.
He felt it was too early to talk about the size of the new budget. A number of issues were yet to be decided after which it will be firmed up and eventually approved by the NEC, the highest body on economic decision- making.
Over the years, it has been a practice to envisage 10 per cent increase in the new budget outlay. However, the budget for 2007-08 experienced an unannounced Rs70 billion cut in the Rs520 billion Public Sector Development Programme (PSDP).
The government did concede that development projects worth Rs70 billion had been delayed and would be included in the next budget.
Under these circumstances, one does not really know really how would the new government augment resources and manage usual 10 per cent increase in the next budget.
According to a senior official, the new government will be given a detailed briefing on the current economic situation with special reference to the forthcoming budget.
Caretaker Finance Minister Dr Salman Shah is of the view that by strengthening public-private partnership, the new government could manage fresh resources to adequately fund the budget for 2008-09. He said that major infrastructure projects could be financed by the private-public partnership.
WHILE the budget-making process for the next fiscal year has been in progress since second week of February, some consensus is also emerging among likely coalition partners--the PPP, PML(N) and ANP — to opt for ‘non-conventional measures’ to provide some relief to the people.
