Monetary measures unveiled by the mini budget suggest that the government did not do its homework and, by and large, it intends to continue the policies of previous government. Instead of bringing any new sector or class of people in the tax net, the government has increased the burden on the existing taxpayers. It did not scale back non-development expenditures but has cut the development budget, which will pull down the economic growth rate to a level that will not be sufficient to absorb new entrants in the job market. Asia Development Bank has estimated 4.8 percent growth for the current fiscal against last governments’ projection of 6.2. Despite trumped up austerity drive, the cost of running the civilian government has been reduced by only Rs3 billion. Mini budget indicates that government is in a “go, no go” state with regard to availing IMF bailout package, however, it has a responsibility towards protecting general public against undue economic hardship. Hopefully, the good sense would prevail, and financial matter would be handled in a professional manner.Read More »
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