Revised projections
As the government opts for an austerity drive by slashing down on expenditures, it has come up with a revised budgetary plan. The economic growth rate for the year 2022-23 has been pitched at five per cent, revising it down from an estimated 5.97%. Likewise, the Public Sector Development Programme has been cut by Rs100 billion, and stands at Rs800 billion. This new outlay is owing to pressure on the economy, especially in the wake of a depreciating rupee and soaring oil prices — something that has brought national life in a compromised position. However, the defence allocation will see a raise of around Rs83 billion, which is six per cent higher, apparently owing to an 11 percentage point surge in inflation. Notwithstanding the projected statistics, it remains to be seen how the government comes up with a viable budget at a time when international aid is not forthcoming and a deal with the IMF too is on the rocks.
The government, however, is keeping its cards close to the chest and believes that it can take on the challenge by tightening the belt and doing away with subsidies on oil and energy. This is a toiling proposition politically, and is being contested. The double-bonanza raise in petrol prices and an upward jerk in gas and electricity tariff have rendered domestic industry on the verge of collapse. The purchasing power of the common man is almost zeroed and the flight of dollars has pushed bourses and FDIs in a dilemma. Yet, the present dispensation wants to funnel resources in the ongoing developmental projects and complete them during the next fiscal year. Its resolve to hike the Higher Education Commission allocation despite severe crunch at home is appreciated. Similarly, the proposed targeted subsidies to the downtrodden and cut in privileges to the civil and judicial bureaucracy are indispensable measures.
One hopes the government walks the talk, and literally cuts down on a plethora of auxiliary expenses that are a common sight of resentment for the masses at large. The daunting task is to rewrite a new deal with the IMF, reschedule debt-servicing and ensure that exports are buoyed by bringing down oil and energy prices.
Published in The Express Tribune, June 8th, 2022.
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