RAWALPINDI:
Where the federal budgets for the last two years were unbearable for the masses due to an unprecedented price hike coupled with no salary increments, the unpacking of budget for the fiscal year 2021-22 has a lot to offer to the general public. A budget with an outlay of Rs8.48 trillion and expected revenues of Rs7.909 trillion, presented on June 11 by the federal government, leaves much room to extrapolate with Rs3.42 trillion deficit and a projected 3.9% GDP growth.
The allocation has been: Rs3.412 trillion transferred to the provinces as per the NFC award leaving net revenue at Rs4.497 trillion; apportioning Rs1.37 trillion for defence services, or 6.2% more than the last year’s Rs1.28 trillion, makes up for 16% of the total budget which is less than the last year’s 18% of the total budget; setting aside Rs3.06 trillion for debt servicing as against the last year’s Rs2.94 trillion; and earmarking Rs900 billion for the PSDP while the allocation last year was Rs650 billion.
The IMF is one big factor that needs a mention here. With or without the lender’s support, managing the budgetary deficit will not be easy. While fulfilling the Fund’s condition on higher power tariff and petrol prices will add to the inflationary pressure, the contrary will leave a wide hole in receipts.
Over all this time though, the budget has left a feel-good factor for all. Government employees were happy, and the common man too, after federal minister Hammad Azhar announced that the cabinet did not approve the FED levy on the use of internet which had caught the social media by storm.
Achieving the targeted 4.8% GDP growth rate requires quite a lot of effort. The PTI government must come out of the opposition’s dislike – as it takes away a lot of focus and attention – and keep its eyes on achieving its budgetary targets.
