FULLER picture would, of course, emerge when the Government presents its budgetary proposals next month but what Finance Minister Shaukat Tarin said on Sunday sparks confidence that it will be a relief-oriented budget and there will be no additional burden on the already hard-pressed people.
At a virtual news briefing, he held out an assurance that the government would neither increase electricity tariff nor burden existing taxpayers.
It would increase Rs1 trillion revenue to reach close to the International Monetary Fund requirement of Rs.5.9 trillion tax collection through alternative means and would reduce what he described as a major headache of circular debt also through other means and not by increasing electricity tariff.
This is, indeed, reassuring as neither the economy nor the masses can absorb further doses of ‘bitter pills’ that they have been administered during the last three years in the name of so-called structural reforms and putting the economy back on track – objectives that are far from being achieved.
It is also encouraging that the Minister announced a plan of the Government for adopting a bottom up approach in the upcoming budget instead of waiting for trickle down effects for providing dividends of GDP growth to the poor.
The proposal involves provision of basic necessities of life to the people such as education, health and other facilities but its linkage with the concurrence of the IMF leaves a question mark and sends distressing signals as to which extent the country has tied its hands while entering into a deal with the Fund.
It is a pity that we have reached at a stage where the authorities find it difficult to provide any relief to the people without a positive nod from the IMF.
However, the Minister for Finance has consistently been declaring that he will not go for further upward revision of electricity tariff, which is already on the higher side and that the objective of increasing revenue collection would be achieved by broadening the tax base and not by putting more and more burden on the people.
This is the need of the hour as repeated upward revisions of electricity and gas prices as well as POL products and devaluation of rupee have made life of the people miserable as price-hike has become a monster for them.
It is hoped that the strategy of the government, being prepared, to give boost to twelve important sectors of the national economy would help realize the objective of stimulating growth and development, mobilize more resources for the government and offer new employment opportunities to the people.
