Federal Budget — A Test of Loyalties

One can only wish that the budget was as impressive as the finance minister’s moustaches. Instead, it is as disappointing as his command over Urdu. The Urdu we can forgive, the unimaginative budget we cannot. The budget is, in most aspects, a non-affair.

The decision to raise power rates and fuel charges was done before Naveed Qamar stood up and delivered his speech. As if for good measure, another decision to this effect was taken some days later. The painful decisions have already been taken. We will suffer the consequences, budget or no budget. Now we have to face the rising prices of essential items. In this the government is of no help. The number of people sleeping on the streets has increased. So will crime. But Islamabad is not worried.

We are told to tighten our belts. But one wonders what the civil and military bureaucrats are doing. Their salaries have been increased and their perks and privileges continue to be enhanced. If performance was a criterion, then there should have been a cut in both salary and benefits. But they have the last laugh when governments are wobbly and there is no one truly in charge.

While one cannot blame the government for raising fuel and power rates, we can ask a number of questions. For one, why is it that the rich are not being asked to cough up more. The tax proposals seem to favour the rich and powerful. The agriculturists have been given many incentives and benefits in the name of promoting the agriculture sector. One can only pray that the poor peasants also get some relief.

We are quick to introduce schemes to whiten black money. One can only wish that the FBR chairman were as deft in his moves to catch the huge number of tax evaders. In a country of over 140 million, we have only over two million direct taxpayers. This is a disgrace and a matter of shame for the government.

From the budget some very interesting conclusions can be reached. For one, it was prepared by the babus of the Federal Secretariat and not some right-thinking politician. As a result, we see idiotic and highflying promises but very little in terms of relief for the poor.

The two trillion rupees budget sees nearly Rs300 billion going to defence. More is being spent also to maintain an ever-growing government. The Prime Minister’s House may have tightened its belt but no effort is being made to check the bulge of wasteful government spending.

As Pakistanis, we have suffered many harebrained schemes. So we will suffer the Benazir Income Support Programme in silence. These schemes do not help the poor but they do give the bureaucrats and politicians money to dole out to their near and dear ones. Has anyone wondered why it is that billions are spent every year in poverty alleviation but poverty continues to rise? Where does this money go?

The money goes in buying multimillion-rupee vehicles for politicians, the military and the civil bureaucrats and to anyone else who matters. We are told that the spiritual advisor of the prime minister has been given an expensive official car at our expense. Money also goes into paying for trips abroad, medical expenses and a lavish lifestyle for our government servants. How long can we afford this?

The week started with the election of Mian Shahbaz Sharif as chief minister of Punjab. One wonders why it is only Sindh that suffers when it comes to chief ministers. The present chief minister may not be financially or morally questionable, but, then again, he does nothing. The province is heading towards decay and chaos, but the chief minister sits happy. For everything he turns to Mr Zardari. Possibly that is why he has been appointed in the first place.

Mr Zardari, for his part, continues to reward his near and dear ones with plum positions. This week, we heard that the sister of his most efficient letter-writer has been given the post of chairman (or is it chairperson) of the Karachi Port Trust. But disaster has been averted. We were earlier told that this position may go to a Karachi-based businessman-turned-politician who stood for elections from a posh locality on the PPP ticket. Why is it that only those competent persons who know the powers that be are rewarded? Why not merit alone?

It is a sad day for the PPP, however. The information minister has had to defend the right of the president to appear on public and private television channels. Ms Rehman, who needs to do more to clean up her ministry, has also had to explain why there is an “unofficial ban� on state TV with regards to President Musharraf. All good things, we are told, have to come to an end.

The more things change, the more they stay the same. That is why the PPP government (we are reminded that the PML-N is no more part of the centre) continues to hold on to vestiges of the Musharraf era. We are told that hundreds of retired military officers hold key positions in the government. This is in addition to retired bureaucrats who have been rehired.

It is not only a matter of re-employing retired officials. It is also about generating employment. Why can’t we ask those who have played their innings to now rest at home so that others who need to be employed get a chance. Instead, we let them stay and create new positions for more. That is why the cost of running the government is rising, and this is being done at the expense of the taxpayer.

The biggest tragedy last week, however, was the attack by two US fighter aircraft on several Pakistani towns and border posts. Nearly thirty Pakistanis were killed by the Americans for no fault of their own. A large portion of those who died were Pakistani soldiers. The government has made all the right noises. However, more needs to be done. We expect this from our elected government.

But democracy has its merits. The Gilani government confirmed in the August house this week that the mindboggling sum of Rs60 billion was written off during rule of President Musharraf and Prime Minister Shaukat Aziz. So much for good governance and accountability. This information could only be wangle in the present parliament. Some of those who have benefited from this largesse sit in the parliament too.

We hope the brave State Bank governor will take the matter further. It would be a crime to let these write-offs, most of which we are told were done at the behest of the suave Mr Shaukat Aziz, be ignored. But the governor is appointed by the president. It is a case of loyalties, some say.