Whither austerity

The government, surprisingly, believes that its so-called relief packages and austerity measures are a panacea for all inflation-driven ills. In a move that feels like déjà vu, it has introduced a Special Relief Scheme for low-income and middle-class consumers reeling under exorbitant fuel prices. Fuel subsidies, it says, will be provided to motorcyclists, rickshaw drivers and owners of vehicles up to 800cc. There is little clarity on how this will be implemented or what cost-effective relief will actually reach the downtrodden. The estimated cost of this benevolence is supposed to be around Rs25 billion per month. The point, however, is that a similar scheme announced earlier only gathered dust on the files, with hardly any trickle-down effect.

The beleaguered dispensation, mired in political instability, is likewise mulling reviving measures such as an early shutdown of businesses, cuts in fuel allowances for official vehicles, and a partial work-from-home policy in the public sector. All such austerity gimmicks, however, have proved to be a hoax, as the rich and the powerful remain immune to these restrictions. Instead, these haphazard curbs clamped on daily life further burden ordinary citizens who are already suffering under double-digit inflation. There is zero empathy for the masses, especially as a staggering levy of over Rs100 per liter remains firmly in force. To make matters worse, the unprecedented Rs30 spike in petrol prices over a mere five days is absolutely appalling.

The masses have every right to question why only the salaried and lower-middle classes should always bear the brunt of the government's economic stabilisation policy, while media ads and fancy billboards glorifying government performance, unnecessary foreign trips for officials, and the misuse of funds remain constant. A very pertinent question is why the IMF is not interested in a proper taxation regime for traders and agricultural income, and why there is relief for the booming real estate sector. Apparently, the petrol levy is the government's non-negotiable red line for revenue generation, as the masses can be squeezed without any socio-political backlash.