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Published 21 Jun, 2019 06:59am

Balochistan budget

BALOCHISTAN isn’t known for budgeting or investing its financial resources responsibly. However, its budget of Rs419.9bn for the next fiscal year reflects a desire to move things in the direction of better management. But will the government succeed in putting its house in order, and quickly? Not many are convinced. The inflated development spending target of Rs108bn (net of provincial share from the federal uplift budget) despite a gap of Rs47.7bn between total income and expenditure means many schemes will not see the light of day. Others will find their allocations slashed significantly to balance the budget, increasing the massive development throw-forward of Rs288.9bn. A large number of schemes may not be completed. This year, the government had to cut the original development estimates from Rs88.2bn to Rs42bn to cover the Rs62bn deficit. The bloated allocations for development are reflective of the peculiar political environment of the province where successive governments sacrificed fiscal discipline to keep their coalition partners happy.

Still, the government has somehow diverted a small chunk of money for initiatives to help the poor. For example, it has proposed an endowment fund for the destitute, made allocations for providing relief to survivors of natural disasters, and financially helping victims of terrorism. It also plans to build highway trauma and emergency centres, initiate an Apna Ghar housing scheme, launch a green tractor programme for farmers, invest in solar power for areas where people still live without electricity, give scholarships to thousands of students, and encourage girls’ education. Additionally, it promises to spend a significant amount on the social sector including education, health and clean water — basic public services that many of those living in the sparsely populated province have never had access to. These steps need to be appreciated. But unless the ruling coalition takes a firm decision to enforce fiscal discipline, it will not succeed in plugging the leakages or putting an end to the waste of financial resources.

Published in Dawn, June 21st, 2019

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