Daily Times

Dr Arif Alvi, a democrat par excellence and, the founding member of PTI, has assumed the office of the President of Pakistan. He will be holding this ceremonial office out of constitutional necessity. What he had desired once was a role in the nation-building drive his party has undertaken and his critical faculties will remain under constant stress, as his office will be charging the national exchequer billions each year, for this ceremonial role.

The economy is all about choices. The necessities of life have to be met with limited resources. So, one has to be calculating as well as critical about spending habits. Savings are must for hard times; investments have to be made for prosperity. In the matter of the state, the biggest issue is accountability. The taxpayer’s money has to be spent cautiously. To act on behalf of the people, the governments have to be efficient as well as economical.

We, as a nation, can’t be daft enough to look for sponsors abroad every year unless we are hit hard by natural calamities to the point that our misery invites pity. Rulers risk being regarded as shameless in asking for aid, when the super rich of the country don’t pay any taxes and the poor have to pay through their noses without being provided basic necessities of life.

Democracy is not only meant to ensure accountability but also the optimal use of the national exchequer, with a focus on improving standards of life. The government run by the people’s representatives simply means no unfair taxation, at all. Those enjoying luxurious lives must pay handsomely. Those on the lower rungs of society have to be guaranteed the provision of basic necessities to keep the national spirit alive. The civilian governments have to divert, at least one third of revenues to social sector development for the sake of legitimacy.

Democracy is not only meant to ensure accountability but also the optimal use of the national exchequer, with a focus on improving standards of life. The government run by the people’s representatives simply means no unfair taxation, at all. Those enjoying luxurious lives must pay handsomely. Those on the lower rungs of society have to be guaranteed the provision of basic necessities to keep the national spirit alive

The last two civilian regimes were democratic only in the sense that they came through polls. The ruling parties did not practice democracy within. They were, and continue to be, dynastic in nature and they saw the world through the notion of ‘balance of power’, rather than rule of law. So, technically, they did not represent the people but the few rich and affluent people at the top. The elitist enterprise was led by the rich and served for the rich, and this was quite obvious. There was no change to the revenue system that heavily relies on indirect taxes. Spending on the social sector did take place, but only through borrowed money, which is now consuming almost half of our budget on interest payments.

The last government was not even shy of spending the borrowed money on highways, metros and Orange Lines, while the people were in need of drinking water and about 80 percent children were facing stunted growth due to non-availability of a balanced diet. Those who had been lurking on political horizons, talking about their support for democracy did not understand its true purpose. The 2018 general elections have put to end the elitist phase of democracy of the last decade. The PTI has succeeded due to its resolve to act as per the spirit of democracy and their desire to let the downtrodden people of the land taste its fruit as well.

To succeed, the PTI not only has to be economical but also accountable. To be economical the Government has to bring down administered cost in delivering public goods to the people at grassroots levels. Consequently, it has to set its priorities anew in terms of spending the meagre resources it has. Being a political party, it has to be very selective as to how they can expand the tax base, but also lighten the burden of taxes on the general public, in order to give them a better life.

The government, of course, has a stake in bringing looted money back to the national exchequer. Someone has to pay for the wrongs of the past and the repayment of debt is too a heavy burden to be thrust on the masses.

That we are spending on social sector through deficit financing constitutes the real challenge of democracy, say the new government. The fault line, we know as fiscal deficit, has been haunting us since long. For real democracy, the fault line, known as fiscal deficit, has be bridged without comprising the interest of the commoners,

The government has to go for out of the box solutions. It has to rethink and possibly undo the legacies of the past, many of which have roots in the colonial era. It begins with penal codes and ends up with our governance structure.

The Islamabad-based columnist reads in signs and narratives

Published in Daily Times, September 21^st 2018.