Budget ahead

With budget season approaching, we are once again enveloped in the yearly activity of trying to figure out what money has to be spent where. Equally important is the stock taking that is done of the previous year through the Economic Survey in which we figure out what we did, or more realistically, what we didn’t.

A time-honoured ritual as part of the budget is the post-budget press conference that is held usually at the secretariat the day after. Here, as if on cue, one of the reporters stands up and asks a question about a raise in the salary of federal government employees and the finance minister is happy to announce the same. This makes the news and hides all the troublesome aspects of the finance bill.

We need to move on. As a country, Pakistan can best be described as an errant child that spends its money on things it shouldn’t. And then there are the debts the child has accumulated over the years, which have to be serviced. They may well be gambling debts for all we know given that as a country we have little to show for the money we have borrowed over the years.

What we see this year is that we will be relying more on China and Saudi Arabia as the US starts a strategic retreat following the withdrawal of its troops from Afghanistan.

In contrast, China is investing in a number of projects while Saudi Arabia has given us a rare blank cheque this time round as its interests in Syria are being compromised. Hopefully we don’t squander these opportunities.

Mian Sahab’s budgets are usually grand affairs. His finance minister, the indefatigable Dr Dar will possibly announce a string of mega-projects, including train corridors and motorways that will crisscross our country. The question is, do we need them?

Budgets are also a time to indicate government policy in the coming year. Given that money turns the wheels, the policy announcements at this juncture help put things in perspective. It makes Dr Dar’s job easier this year because the parliament will let him speak. In past governments and budget speeches, there were times when budget books were thrown around and people shouted at will to disrupt proceedings. This time round possibly the only drama will come from the finance bill.

Are we ready, however, to take important decisions?  For example, we need to reduce the size of government and cut the powers of our bureaucrats who consistently interfere in the workings of the private sector. At the same time, we need to start a drive to double the number of tax-payers. The recent directory that was issued by the government only confused us more. What we need among other things is direction for our economy. So far it has been a mixed bag.

Non-development expenditure has to decrease. There is no accountability. Much of this money is siphoned off or is unused.  We cannot keep giving salaries to government servants who don’t perform. We need to spend more on development. That creates economic activity.

The government should focus on the key areas of health, transport, education and public amenities like water and power. Given that in all these sectors there is a strong private sector presence, the government should focus more on basic services and leave the rest to the others. It should ensure instead the presence of strong regulators so private players don’t abuse their positions.

At this time, our biggest challenge is not the big projects. It’s getting the small things to work. For example, water delivered in taps not tankers, power through lines not by generators. Teachers coming to school and taking classes.

Education is infested with corruption. We have ghost schools and teachers appointed against merit who work elsewhere. We have billions earmarked but not accounted for. There should be a drive to fix all these things. But for that we would need honest people to run the show.

Another challenge for the government would remain law and order. But to announce spending billions in hiring more policemen and law enforcers will only help some people, not the country.

As a country, we need some direction. There is so much to be done. Policies cannot be made to favour one business group or another. We have to look at the good of the industry and of the country.

Published in The Express Tribune, April 28^th, 2014.

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