THE last budget of this regime has been finally unveiled. At one place, this election year budget has something to offer to everyone, like tax breaks to salaried and business classes, increase in salaries and pensions of government employees, jobs for youths, reduction of federal excise duty on cement, tariff rates of custom duties and so on.

On the other hand, it has nothing to address structural weaknesses. The financial managers have lost will power to bring the economy to growth-oriented track. They have been consistently backtracking on steps necessary for economic stabilisation, i.e. broadening of tax net, evolving business-friendly environment and cutting expenditures.

Meanwhile, the substantial increase in revenue target up to Rs400bn signifies the hollow claims of budget makers and once again proves that they no longer believe in cutting the coat according to the cloth. Mere highlighting new 700,000 potential people will not bring them under the tax net in the prevailing conditions, where incompetence and ineffectiveness of tax authorities is a fact which is hidden from no one.

If the government was determined to provide material relief to its voters, it should have rather taken steps to control devaluation of the currency, rising inflation rate, peaking power demand, removing taxes on medicines, facilitating investors and providing soft loans to youths for education and business. But it presents grim prospects for its voters.

Whereas, the finance minister puts the entire blame on the NFC Award for financial constraints faced by the federal government that restricts its spending on social sector.

However, even a cursory look at the budget figures seriously negates the minister’s claim. This financial year marks a record increase in expenditure on the maintenance of President’s House and on foreign trips.

Similarly, highups are also privileged with allocation of billions of rupees in the name of discretionary and secret funds. On the final day, nobody will surely come to know where these funds were utilised. Will they be spent on upcoming election campaigns or personal gains or welfare of the masses, the question will remain unanswered? Should such secret funds find any place in a country which is mired in huge public debt, financial constraints, and flight of local and foreign investments?

These expenditures, inevitably, defeat the wisdom of transparency and accountability. If some sanity still prevails, the financial minister can easily save many billions of rupees for uplifting and reforming social conditions of the masses.

Moreover, COAS Gen Kiyani has, on several occasions, expressed his dismay on the state of social conditions in the country. Perceiving his concerns, it was expected that the three Services Chiefs will restrain the budget-makers from increasing the defence expenditures, if not reducing them or allowing them to shift their pensioners to defence net. That would have passed the benefit of about Rs40 to 50bn to the underprivileged and malnourished people of this country.

However, the budget has proved to be quite traditional. There is no innovative and bold initiative. The fiscal deficit is likely to exceed 8 per cent because of ambitious expenditure and revenue targets. And, in prevailing conditions, no aid or loan is expected to fill the huge vacuum. As a result, the shortfall will be promptly recovered from the development sector at the expense of the people.

MUHAMMAD AZAM SHAIKH Advocate & General Secretary, Tax Bar Association Larkana