Budget 2023-24: Sugar Coated bitter pill I
Dr.Syed Mehboob
Economic stability, smart allocation of resources, value addition of natural, human and other resources, human development, and eradication of poverty, illiteracy, and unemployment is vital for economic development, progress and prosperity. It is the duty of economic policies makers to
Economic stability, smart allocation of resources, value addition of natural, human and other resources, human development, and eradication of poverty, illiteracy, and unemployment is vital for economic development, progress and prosperity. It is the duty of economic policies makers to leave no stone unturned to stabilize the economy.
Budget is the estimate of a country’s resources which it is going to manage for the year and expected expenditure where these resources would be spent. Budget also reflects the strength and weaknesses of a country’s economy. Sincere, dedicated, committed and honest leadership always tries its best to allocate resources in a way which paves the way for economic growth, employment generation, reduce cost of doing business, encourage internal and external investments, startups, facilitate entrepreneurship and trickle-down economic fruits to enable common people to fight against poverty, Illiteracy and unemployment. Unfortunately Pakistan, even after 75 years of its independence yet it is far from economic stability. It is also struggling for gaining political stability. Pakistan under the Martial Law regimes relied on American and western countries aid and support and put all its eggs in one basket which harmed our national security. Feudalism remained dominant and became very powerful both in terms of politics and economic resources. Pakistan fought American war against terrorism of which it paid high cost in terms of more than 80,000 deaths and US$ 100 billion of economic cost. This crippled its economy badly and in it had to refer to International Monetary Fund (IMF) and other lending agencies. Former Prime Minister announced that he would never go to IMF and would rather prefer to commit suicide but he was forced to change his economic team even after two months of coming into power and relied on the same people who served in Musharraf and Zardari’s cabinets. His team went to IMF for financial support and in result debt volume increased phenomenally. Two years because of Covid 19 hit economy but later Pakistani economy had shown resilience and 2021 and 2022 were better in terms of economic growth, high remittances, industrial and agricultural growth however in terms of mounting debt, higher inflation, unemployment, increasing poverty, fiscal deficit, trade deficit, economy performed were very badly.
Political instability and rivalry is also a reason for economic instability successive governments could not complete their tenure and number of Prime Ministers sent back to their homes. It’s high time to save Pakistan from these elites who should now come forward or forced to sacrifice. This is the only way to save Pakistan and to introduce interest free sharia based economy in Pakistan. Poor segments of society are forced to commit suicide and cannot feed their children two times, not to speak of providing them education.
PDM government an alliance came into power with promises to control inflation, to provide relief to common people, to stabilize economy, to generate employment but all these were tall claims. Although it could have managed to escape from default but it could not satisfy IMF and the sword of default is still hanging on the head of nation. The inflation is the highest ever in history, interest rate is one of the highest in the world, unemployment and poverty increased many folds.
Budget is mixture of decisions to try to please IMF and to provide relief to people simultaneously. Policy makers should keep in mind that worst affected people are daily wage earners and those who work in Seth oriented organizations, mill owners, where they are deprived from their basic rights. They are not provided medical, gratuity, bonus, transportation facilities. Poor labour are left at the mercy of contractors (Thekehdari System) and no tv channel, social media or anchors raise this issue because these por segments are voiceless. Even there are many organizations which do not bother to provide their employees’ appointment letter the basic document for an employee.
Budget at a glance
Revenue Rs. Billion Expenditure Rs. Billion
FBR tax Revenue 9,200 Current Expenditure 13,319
Non Tax Revenue 2,963 Interest Payment 7,303
Total Revenue 12,163 Defence Affairs and Services 1,809
Less Provincial Share 8,276 Grants 1,464
Net revenue receipts 6,887 Subsidies 1,074
Non-Banking Borrowing 1,906 Running of Civil Government 704
Net External Receipts 6,971 Provision for disaster/Emergency 200
Estimated Provincial Surplus Development
Bank Borrowing 3,124 Federal PSDP 1,150
Privatization proceeds 15 Borrowing from external and internal resources 11,389
Total Budget Target 19,538 Total Expenditure
Deficit 19,538
6,923 6.54% pf GDP
Rs. Billion
Federal Revenue Net 16,397
Total Federal Expenses 19,538
Federal Deficit 6,923 6.54% pf GDP
So budget is not good news for common people more price hike, decreasing purchasing power and pushing more people below poverty line. This government is on same track of Imran Khan who himself and his cabinet members and party mouth piece were continuously were telling that Pakistan is cheapest country in the world and now similar distortion and lame excuses of sky rocketing prices are given by present government. It is high time that whole nation should try to get rid of interest based economy and should be converted into interest free sharia based economy to win the blessings of Almighty Allah.
Budget 2021-22 and 2022-23 a comparison Rs. Billion
2022-23 revised 2023- 24 estimated Diff %
Revenue Receipt (FBR) 7,200 9,200 27.77
Non Tax Revenue 1,618 2,918 80.35
Gross Revenue 8,818 12,163 37.93
Less Transfer to provinces (4,129) (5,276) 27.78
Net Revenue for Fed govt 4,689 6,887 46.87
Expenditure 11,090 14,460 30.38
Provincial Surplus 459 650 41.61
Overall budget deficit (5,941) (6,922) 16.51
Primary deficit (621) (380) -38.80
Primary deficit as % of GDP -0.5 -0.4
Nominal GDP 84,658 105,817 24.99
Health and Services 22.46 24.21 7.78
Education 91.77 97.09 5.80
leave no stone unturned to stabilize the economy.
Budget is the estimate of a country’s resources which it is going to manage for the year and expected expenditure where these resources would be spent. Budget also reflects the strength and weaknesses of a country’s economy. Sincere, dedicated, committed and honest leadership always tries its best to allocate resources in a way which paves the way for economic growth, employment generation, reduce cost of doing business, encourage internal and external investments, startups, facilitate entrepreneurship and trickle-down economic fruits to enable common people to fight against poverty, Illiteracy and unemployment. Unfortunately Pakistan, even after 75 years of its independence yet it is far from economic stability. It is also struggling for gaining political stability. Pakistan under the Martial Law regimes relied on American and western countries aid and support and put all its eggs in one basket which harmed our national security. Feudalism remained dominant and became very powerful both in terms of politics and economic resources. Pakistan fought American war against terrorism of which it paid high cost in terms of more than 80,000 deaths and US$ 100 billion of economic cost. This crippled its economy badly and in it had to refer to International Monetary Fund (IMF) and other lending agencies. Former Prime Minister announced that he would never go to IMF and would rather prefer to commit suicide but he was forced to change his economic team even after two months of coming into power and relied on the same people who served in Musharraf and Zardari’s cabinets. His team went to IMF for financial support and in result debt volume increased phenomenally. Two years because of Covid 19 hit economy but later Pakistani economy had shown resilience and 2021 and 2022 were better in terms of economic growth, high remittances, industrial and agricultural growth however in terms of mounting debt, higher inflation, unemployment, increasing poverty, fiscal deficit, trade deficit, economy performed were very badly.
Political instability and rivalry is also a reason for economic instability successive governments could not complete their tenure and number of Prime Ministers sent back to their homes. It’s high time to save Pakistan from these elites who should now come forward or forced to sacrifice. This is the only way to save Pakistan and to introduce interest free sharia based economy in Pakistan. Poor segments of society are forced to commit suicide and cannot feed their children two times, not to speak of providing them education.
PDM government an alliance came into power with promises to control inflation, to provide relief to common people, to stabilize economy, to generate employment but all these were tall claims. Although it could have managed to escape from default but it could not satisfy IMF and the sword of default is still hanging on the head of nation. The inflation is the highest ever in history, interest rate is one of the highest in the world, unemployment and poverty increased many folds.
Budget is mixture of decisions to try to please IMF and to provide relief to people simultaneously. Policy makers should keep in mind that worst affected people are daily wage earners and those who work in Seth oriented organizations, mill owners, where they are deprived from their basic rights. They are not provided medical, gratuity, bonus, transportation facilities. Poor labour are left at the mercy of contractors (Thekehdari System) and no tv channel, social media or anchors raise this issue because these por segments are voiceless. Even there are many organizations which do not bother to provide their employees’ appointment letter the basic document for an employee.
Budget at a glance
Revenue Rs. Billion Expenditure Rs. Billion
FBR tax Revenue 9,200 Current Expenditure 13,319
Non Tax Revenue 2,963 Interest Payment 7,303
Total Revenue 12,163 Defence Affairs and Services 1,809
Less Provincial Share 8,276 Grants 1,464
Net revenue receipts 6,887 Subsidies 1,074
Non-Banking Borrowing 1,906 Running of Civil Government 704
Net External Receipts 6,971 Provision for disaster/Emergency 200
Estimated Provincial Surplus Development
Bank Borrowing 3,124 Federal PSDP 1,150
Privatization proceeds 15 Borrowing from external and internal resources 11,389
Total Budget Target 19,538 Total Expenditure
Deficit 19,538
6,923 6.54% pf GDP
Rs. Billion
Federal Revenue Net 16,397
Total Federal Expenses 19,538
Federal Deficit 6,923 6.54% pf GDP
So budget is not good news for common people more price hike, decreasing purchasing power and pushing more people below poverty line. This government is on same track of Imran Khan who himself and his cabinet members and party mouth piece were continuously were telling that Pakistan is cheapest country in the world and now similar distortion and lame excuses of sky rocketing prices are given by present government. It is high time that whole nation should try to get rid of interest based economy and should be converted into interest free sharia based economy to win the blessings of Almighty Allah.
Budget 2021-22 and 2022-23 a comparison Rs. Billion
2022-23 revised 2023- 24 estimated Diff %
Revenue Receipt (FBR) 7,200 9,200 27.77
Non Tax Revenue 1,618 2,918 80.35
Gross Revenue 8,818 12,163 37.93
Less Transfer to provinces (4,129) (5,276) 27.78
Net Revenue for Fed govt 4,689 6,887 46.87
Expenditure 11,090 14,460 30.38
Provincial Surplus 459 650 41.61
Overall budget deficit (5,941) (6,922) 16.51
Primary deficit (621) (380) -38.80
Primary deficit as % of GDP -0.5 -0.4
Nominal GDP 84,658 105,817 24.99
Health and Services 22.46 24.21 7.78
Education 91.77 97.09 5.80