Budget lacks creative thinking: experts

Speakers at webinar call for boosting economic activity to increase revenue

ISLAMABAD:

The government can only improve its revenue side by creating an environment conducive for economic activity especially in the current unprecedented challenging external and internal circumstances, speakers at a webinar arranged by a think-tank said on Wednesday.

However, the budget presented by the federal government shows severe lack of any well-thought-out approach in the turbulent times which Pakistan is faced with.

These views emerged at a webinar on Federal Budget 2020-21 organised by Institute of Policy Studies (IPS) Wednesday. IPS Executive President Khalid Rahman said that the country is experiencing extraordinary circumstances and in this situation some innovative ideas were expected in the proposed budget.

He deplored that the country's actual problem is governance deficit, which is going from bad to worse. "Examples of this can be seen in the petrol shortages and healthcare issues during the pandemic," he said.

Zaheeruddin Dar, former civil servant, and economic policy analyst expressed his concern that a 27 per cent increase in FBR revenue was unrealistically expected in the budget.

Mirza Hamid Hasan, former federal secretary, water and power said the government reduced the power sector subsidy from Rs200 billion to Rs124 billion, which will be harmful for the sector. The independent power producers may go into default and as a result electricity tariffs might increase.

Discussing the pressures in which the current budget has been made, Zafarul Hassan Almas, Chief Macroeconomics, Planning Commission of Pakistan explained that the federal government's revenue - after paying the due share of provinces - was a meagre 3.7 billion approximately. The government will actually start its business with a deficit of Rs1 trillion.

Published in The Express Tribune, June 18^th, 2020.