Daily Times

“When we engage in the critical decisions about our nation’s future budgets, I want progressive voices at the table to argue that we must protect the most vulnerable in our society and demand fairness in budget cuts” —Dick Durbin, American lawyer

Pakistan’s budget for fiscal year 2021-2022 was announced on June 11, 2021 amid the usual furore raised by opposition members. Compared to previous years, this budget has been presented as a breath of fresh air. Not least due to the ruling government’s claim of eventually stabilising the fiscal affairs of this country while looking forward to an uptick in growth for the remainder of its tenure. Besides, there is much jubilation at the idea of providing relief to those languishing below the poverty line through micro-financing and skill development under the auspices of the Ehsaas programme. Another source of pride for the government is reducing some income tax-withholding provisions that have been discouraging documentation and increasing cash transactions. Although no new taxes have been introduced and sales tax on some items reduced only marginally — the ultra rich are once again protected from a levy of taxes which they are actually obliged to pay.

However, the public’s interest in the budget is largely restricted to balancing their own domestic and commercial books with little concern for the highly technical jargon employed during budget speeches. Therefore, all this talk of trade and fiscal deficits, GDP (gross domestic product), tax to GDP ratio, debt-to-GDP ratio, National Finance Commission (NFC) Award , percentages, increase and decrease in revenue and inflation is gibberish to those more worried about meeting day-to-day expenses for the subsistence of their families. Thus, price hikes and reductions matter the most, as well as making ends meet while wondering if the future holds any real promise. The public — already subject to a host of (largely) direct and indirect taxes — find no solace in reduced tax rates, credits and rebates because the majority has no intention of bothering the tax authorities with their existence. After all, they know quite well that once on the register, life will become absolutely hellish, so oblivious to any concessions, they continue to go about their daily business.

In a country where rule of law is absent, justice remains undelivered, people are deprived of basic entitlements — public institutions merely exist for the benefit of a few. Meanwhile, the poor are exploited in the name of national interest

In a country where rule of law is absent, justice remains undelivered, people are deprived of basic entitlements — public institutions merely exist for the benefit of a few. Meanwhile, the poor are exploited in the name of national interest while fragile security threatens both lives and possessions as dacoits roam freely. And all the while, the rich-poor divide is fast turning into a menacing abyss and the rulers are absolutely dependent upon foreign prescriptions while failing to take advantage of indigenous ideas or proposals or even learning from successful regional examples. Against this backdrop — how can the public be expected to welcome this or any other budget with open arms?

Every year, the public eagerly await announcements that would bring about a qualitative change in their lives. One that would revolutionise the way in which future generations can enjoy a level playing field full of ample opportunities to prosper and progress. Yet every year the masses are confronted with the same disappointment. Thus they have come to realise that the entire political leadership, regardless of ideological leanings, is merely enraptured by the idea of brandishing power; no matter the opportunity cost. The defenceless public have nowhere to go and will always remain vulnerable to societal injustices, acts of terrorism, poverty and helplessness. And the collective political leadership will continue to think a few rupees thrown here or there is enough to absolve them of all responsibility.

What does it matter, if the public are subjected to the caprice of the authorities which, when empowered, are forever poised to exploit them to the point of frustration? What does it matter if in the name of education, large sums allocated to the public sector are only directed towards paying the hefty salaries of undeserving teachers who have failed to produce knowledgeable, humane and conscientious generations? What does it matter if roads and highways are built only to erect epitaphs of short-sighted statesmen while pedestrians are left at the mercy of fast-moving vehicles because governments are least bothered about providing a decent and affordable public transport system? So what, if passengers lose their lives in frequently occurring train accidents because the railway department is incompetent when it comes to safety checks. When the majority of governmental sectors are collapsing, what good can an out-of-the-box budget do to uplift the whole country?

This budget, like its predecessors is just a kedgeree of mixed aspirations that is bound to create more confusion and procedural complications for the public. Facilities for specific sections of society are prone to induce opportunists to take advantage of the system even if it means loss of revenue for the country. Whenever lop-sided policy measures are selectively adopted there will definitely be loopholes and confusion. All of which are hallmarks of our annual budgetary exercise.

The writer, lawyer and author, is an Adjunct Faculty at Lahore University of Management Sciences (LUMS), member Advisory Board and Senior Visiting Fellow of Pakistan Institute of Development Economics (PIDE). and tweets @huzaimabukhari