- Embracing fiscal discipline, curbing wasteful spending and equitable resource allocation helpful measures
The recently presented and passed Budget 2024-25, totaling Rs18.9 trillion, sets an ambitious revenue target of Rs13 trillion. The Prime Minister and Finance Minister have emphasised that robust revenue collection is essential for a strong economy and self-sufficiency. However, despite this rhetoric, no concrete steps have been taken to reduce expenditures. Instead, new facilities have been granted to bureaucrats and officials, signaling a lack of commitment to fiscal discipline. This focus on increasing revenue without curbing wasteful spending raises concerns about the budget’s effectiveness in achieving true economic growth and sustainability.
Pakistan faces a dire situation where billions of dollars are spent on pensions and facilities for retired military, judiciary, and bureaucratic officers. This privileged group enjoys a wide range of benefits, including lucrative pensions, plots of land, and access to premium healthcare and education. These expenses are borne by the state, both during their service and after retirement. Meanwhile, the general population struggles to access basic necessities like quality education, healthcare, and clean water. The disparity is stark, with a significant portion of the national budget allocated to cater to the needs of this elite group. The burden on the state is substantial, with limited resources available for essential public services. This perpetuates a cycle of inequality, where the privileged few continue to reap benefits while the masses are left behind. It is imperative for Pakistan to reassess its priorities and allocate resources more judiciously, ensuring a more equitable distribution of resources and opportunities for all citizens.
In addition to the inequalities in pension and facility allocations, Pakistan faces numerous challenges, including inadequate health and educational services and food insecurity. The country has 26.2 million out-of-school children, with 39% of school-age children not enrolled in school, highlighting the struggle to achieve universal education. Furthermore, the Food and Agriculture Organisation (FAO) reports that 74% of the population cannot afford a healthy diet, which requires an average of $1 per person. This translates to Rs55,000 per month for a family of four, far exceeding the minimum wage of Rs32,000. Additionally, the Health Minister acknowledges that half of the population lacks access to essential health services, although the Universal Health Coverage index has improved from 40% in 2015 to 52.7% in 2023. These statistics underscore the urgent need to address these pressing issues to ensure a better future for the people of Pakistan.
As the debate on revenue collection and enhancement intensifies, a crucial aspect remains overlooked: expense reduction. While increasing revenue is essential, it is equally important to address the elephant in the room: excessive government spending. The focus solely on revenue growth ignores the need for fiscal discipline and prudent resource allocation. Reducing expenses and streamlining government expenditures can significantly contribute to economic stability and growth. It is time for policymakers to shift their gaze towards curbing wasteful spending, implementing austerity measures, and optimizing resource utilisation.
For Pakistan to achieve true economic prosperity, policymakers must adopt a dual approach: enhancing revenue while simultaneously curbing unnecessary expenditures. This balanced strategy would not only address immediate fiscal challenges but also lay the foundation for sustainable economic growth. Ensuring that resources are allocated towards essential public services, such as education, healthcare, and clean water, is critical for improving the quality of life for all citizens.
Addressing the educational crisis, for instance, requires significant investment in infrastructure, teacher training, and curriculum development. With 26.2 million children out of school, achieving universal education demands a focused and sustained effort. Similarly, tackling food insecurity involves not only ensuring that a healthy diet is affordable but also implementing programmes to support agricultural productivity and reduce food waste.
Healthcare access, another critical area, necessitates a comprehensive strategy that includes expanding healthcare facilities, training healthcare professionals, and ensuring that essential medicines are available and affordable. Improving the Universal Health Coverage index from 52.7% to a higher percentage should be a priority, reflecting a commitment to providing adequate health services to all citizens.
Water scarcity, an issue affecting millions, requires investment in water management infrastructure, efficient irrigation systems, and public awareness campaigns on water conservation. Addressing this issue is essential for sustaining agricultural productivity and ensuring access to clean drinking water.
In conclusion, the Budget 2024-25 presents an opportunity for Pakistan to realign its fiscal policies towards a more sustainable and equitable path. By focusing on both revenue enhancement and expense reduction and prioritising investments in essential public services, Pakistan can overcome its current challenges and pave the way for a prosperous future. Policymakers must embrace fiscal discipline, curb wasteful spending, and ensure that resources are allocated where they are most needed. Only through such comprehensive and balanced measures can Pakistan achieve true economic growth and sustainability.