Is There Anything Good About The Budget?

Earlier today, the highly anticipated annual budget for the fiscal year 2019-20 was finally revealed. And as expected, almost everyone from political leaders to our uber drivers have a lot to say about it.

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The higher tax rates and significant cuts in both the health and education budgets have been met with strict opposition and critique ,embellished with claims of Imran Khan destroying the economy and sarcastic hits at Naya Pakistan .

The popular narrative is as usual against the government because we can barely ever get past the yeh bik gayi hai gormit mentality so maybe its time we try to get past the negative rhetoric and try to find things within the budget which are actually good.

The Ehsas Program

One of the major promises in Imran Khan’s political campaign was poverty alleviation and he has tried to deliver on it with a comprehensive and extensive scheme. Under the new budget, one million people will be provided with ration cards in an effort to tackle extreme poverty and the subsequent lack of food and nutrition. The budget also promises special nutritious food for mothers and infants.

Taxes That Are Not So High

There is significant coverage on all the tax rates that have been increased and how adversely it will affect the common Pakistani but what about the areas where taxes have actually decreased? The government has introduced a 3% VAT reduction on mobile phone imports while the tax on immovable property has also decreased from 2% to 1%. Additionally, 3% duty has also been waived off 19 basic medical products. So while there has been a significant increase in taxes not everything is as grim as it seems.

Subsidies, Loans & Stipends

Various measures to support the disadvantaged demographics of the population have also been introduced. These include a 200 billion subsidy on electricity for consumers that use less than 300 units of electricity per month and an additional 40 billion on subsidies for gas and electricity. The budget also promises 100 billion in loans to the youth under a program known as Kamyab Jawan . Additionally, the government will provide interest-free loans to 80,000 people every year. A female-focused scheme also aims to provide 6 million women with stipends through the phone.

The Increase in Wages

While the government receives criticism for making life harder for the average Pakistani, most people seem to have sidelined the revaluation of wages within the budget. Not only has there been an increase in the minimum wage to make it 17,500 rupees but the salaries of lower grade government employees have also seen an increment. While officers above grade 20 retain previous figures a 5% increase for grades 17-20 and a 10% increase for grades 1-16 has been introduced. There has also been a 10% increase in net pensions.

So Is It Really That Bad?

While there are aspects within the budget that might be worthy of criticism, the current economic conditions of the country have understandably forced the government into a tight corner. And all things considered, aren’t higher taxes better than increasing debt? Amidst all of the negativity there are always various good aspects to focus on and while criticism can often be positive maybe we should try and sometimes not focus solely on it.

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