THOUGH many points can be raised against the budget 2020-21 presented by the government on Friday but keeping in view the challenge posed by Covid-19 which has severely affected the economy and brought everything to a standstill, it is in our view a balanced and a business friendly budget, built around austerity, belt tightening and increasing the tax revenue without going for imposition of any new tax. Rather the taxes and duties have been reduced to support different sectors such as the cut in sales tax for big retailers from fourteen to twelve percent will facilitate them during these difficult times.
Indeed the most important component of any budget is its development side. This time around the annual PSDP has been set at 650 billion rupees to increase the growth rate and generate jobs and encourage the construction sector whilst focus has also been given to the CPEC-related projects, which indeed is encouraging. The economy is currently under tremendous stress and strain and we can pull it out of these dire straits only by spending more on the development projects whilst curtailing the non-development expenditure. Though the annual PSDP for the next fiscal year is less than when compared with the last year yet the focus next year should be ensuring timely releases for the development schemes. The amount earmarked for development must be fully utilized as often it is seen that our governments fail to completely use these development funds due to sluggish approach and indecisiveness. This is the reason that on average each PSDP project is also finished in double the approved cost. Timely release of funds such as for ML-1 as well as the construction of water reservoirs can help trigger economic activity and generate livelihood opportunities for the people.
The segment most affected by the inflation and current situation arising out of Coronavirus is also the fixed income group. This is the reason that there is an outcry on the part of public sector employees for not raising their salaries and pensions in the budget despite the promises made to them earlier this year. There is also heart burning amongst these employees as before the breakout of Covid-19 salaries of organizations such as National Accountability Bureau (NAB) and FIA were substantially enhanced by the government. The other public sector employees were expecting that they will also be given raise equivalent to them but in the end they have not been given anything. We will suggest the government to take into account the sentiments of these employees and give them a reasonable salary raise in the budget. Then the justice warrants that the disparity in salaries is brought to an end and a uniform salary package is given to all the employees.
