Planning future budgets
A berrations like the Slave Dynasty where servants become rulers are now commonplace in Third World countries, becoming a real part of the politico-economic scenario. Ostensibly rulers have been politicians and military men, in actual fact civil servants have established all pervasive Clerk Dynasties, producing two Presidents (one serving), two Governor Generals, Prime Ministers and most of our Finance Ministers in Pakistan.
Our financially weak economy has never really slid in their hands into South American-type runaway inflation, but prime reasons for our lack-lustre economic performance have been (1) lack of innovation, persisting with economic models dictated by external experts and (2) blatant corruption, lack of accountability thereof. The run-of-the-mill character of the present Federal Budget confirms its preparation by a number of faceless bureaucrats as put together year after year for over four decades. The capabilities of bureaucrats cannot, however, be condemned wholesale, even the present Federal Budget has good points, easily attributable to V A Jafarey and AGN Kazi, honest and able economic administrators but frozen in the straitjacket of yesterday’s policies, innovation seen only in flashes from time to time. Given the parameters of a bleak economic scenario, a reasonable job has been done by the two old gentlemen, a livable document being produced.
Ehsanul Haq Peracha must be freed from his misery, the PM can sacrifice him after letting him enjoy his Eid on the morrow. The Combined Opposition Parties (COP) raised much ado about the Singer, their weak numbers failed to stifle the Song, in any case what innovation did they bring in when they were in power? The PM used Peracha as a convenient punching bag for the Opposition, a diversionary tactic, drawing attention away from other burning issues and potent causes. If true, this was a brilliant tactical ploy, if coincidental than extremely fortuitous. To Peracha’s credit he was flustered only slightly more than his normal nervous self, he took the abuse genially, occasionally making his earlier Budgetary pronouncements “in-operative”, Ziegler-like. Like a punch-drunk boxer keeping a wary eye on his corner where his aggressive coach exhorted him in the National Assembly ring to jab and counter-punch his way out of trouble, Peracha hesitatingly laid before the House facts of bad, undeserving loans from nationalised banks and DFIs made out to Opposition members, the PM’s repeated “tell, tell” clearly showed that in a Third World country parliamentary democracy’s in-house shenanigans dictate that you can try to be a lady and a PM, you can seldom manage both and get away with it.
As a sop to all corners Rs 0.52 billion have been reduced by certain amendments, some consolation! The real taxes came in the fuel price rise just before Ramazan and the lack of protest thereof showed the way, the people are apathetic about going into the streets, as FPCCI’s badly timed strike showed. One cannot deny the sorry financial numbers in an innovation-free environment, particularly when the extra revenues are necessary, our biggest financial problems are inordinate debt servicing and an implacable foe in India, upping our allocations for Defence. Budgetary proposals are simply up and down addition and subtraction stuff. It is not too early to plan for the next financial year, to lay out certain principles and reference points as guidelines for an innovative and effective Federal Budget that will face head-on our ever increasing debt crisis.
That Budgetary proposals must be the prerogative of elected representatives starting at the lowest functioning democratic unit must be the FIRST principle. According to the 1981 census the population in Punjab was about 47 million, divided presently into (8 Divisions and) 29 districts, an average population of 1.62 million per district, whereas in 1990 the Punjab population is estimated at 60 million or almost 2.06 million per district, too many people for one district. Punjab has presently 2,392 Rural Union Councils, 8 municipal corporations, 63 urban municipal committees, 135 Town Committees and 18 Cantonment Boards. Our suggestion is that in Punjab, Sindh and urban areas of Balochistan and NWFP, no district should have a population of more than 1 million, the number of districts in Punjab alone would go up to around 60. Every ten years, the numbers of districts should be re-demarcated according to the latest Census. Each district would have 4 Sub-divisions, each Sub-division having 5 Union Councils, making the number of Union Councils in each district to 20, Union Councils being the lowest democratic unit with a population of 50,000. There would be 1,200 such self-governing Union Councils in Punjab. In Urban areas, Sub-divisions can be called Town Committees and Sub-Divisional Councils in rural areas. Sindh with an estimated population of 23 million would have 460 Union Councils 92 Sub-divisional Councils and 23 District Councils. N W F P with more mountainous as terrain and a population of 14 million should have 40,000 population in each Union Council (except the city of Peshawar having 50,000 population in each Union Council), thus 18 District Councils, 72 Sub-Divisional Councils and 360 Union Councils. Since Balochistan’s meagre population is spread over a greater area, the size of each of their Union Councils should be about 20,000 population each except for Quetta. Districts would be of 400,000 population except Quetta, thereby having about 12 District Councils in its 5 million population, 48 Sub-Divisional Councils and 240 Union Councils.
Each Union Council, whether Rural or Urban, should have the powers to impose and collect Community and Property taxes, Zakat and Ushr. After passing on a portion for the Sub-Division and so on, the Union Council’s members should formulate their own Budget including funds for management, maintenance of socio-economic infrastructure and development thereof. Each Union Council should have its own Police Station and attached magisterial court adjacent to the Union Council Building. In the presence of the Community Tax, to be imposed on the assessed annual wealth of each Community member according to an agreed formula (assessment made under the arrangements of the Community itself), no individual income tax or wealth tax is to be levied by the Federal or Provincial Governments, this should be completely abolished. A direct linkage is thus provided between assessment, collection and spending. Every citizen would be content that at least a major portion that he pays as tax would be spent in for his own community’s betterment in the form of roads, water and sewerage, parks, schools, etc. While bureaucrats may be appointed as tax auditors to ward off grand larceny as well as to ensure the correct assessment/payment of share portion for the higher democratic units, the Sub-division, the District and the Province, they should have nothing to do with collection or spending of Budgetary resources, independently they can verify to see that the levying of taxes is proper and according to the law.
The SECOND Principle is that Federal funds should be allocated on the basis of (1) matching funds in developed areas (2) on an escalated basis as outright Federal or Provincial Grant meant for development of socio-economic infrastructure in undeveloped or underdeveloped areas and (3) phased reduction in subsequent years if no self-improvement is seen, no community should be encouraged to live on handouts.
Self-government at the levels of Union, Sub-division district, Province and Federal does not obviate the bureaucracy’s role at various tiers but there will be drastic cutting down of administrative expenses. The THIRD principle is to curtail the powers of bureaucracy to interfere in the lives of common citizens at every level, by cutting down interference the economy will be allowed to flourish without check. More industrial and commercial enterprises will mean enhanced revenue-gathering down the line, starting from the Federal Government and its indirect taxes down to the Union Council and its direct levying of taxes.
The FOURTH principle should be to wage a relentless war against corruption, but first the salary and working conditions of the bureaucrats should be put at par with top-grade commercial and industrial enterprises to do away with the have-not status of honest government servants. Reduced powers of interference on one pretext or the other will restrict the capacity for misdeamenour of the corrupt ones. Exemplary punishment must be meted out to wrongdoers, unless punitive measures are made effective without any concern of the level of post occupied, nepotism and corruption will flourish without check.
Lip-service is given to cost effectiveness, waste of all types is the order of the day. Available funds must be made to stretch, economising may be done by suitable planning, avoiding duplication, streamlining procedures, cutting down paper work, computerizing, etc, etc. The FIFTH principle must therefore be to conserve each penny. Instead of status symbol Pajeros for government departments Suzuki jeeps would do very well. Banning all lavish expenditures the Government must be seen to be doing that by the general public. The SIXTH and last principle is to exercise fairness in mutual dealing. If anyone feels that they are being deprived of their rightful incomes, not given due matching funds or they are discriminated because of anything else, good faith will be transcended by the creation of multifarious problems, some real, some imagined. We are torn apart by ethnicity because we do not pay any attention to the basic essentials of nationhood, the importance of community spirit in community living. Democracy is a great equalizer, a basis for good government as annunciated by our Prophet (PBUH). One must not complicate matters of Government but keep systems simple and open to accountability, above all subject to fair dealing all around. When we are ready to adhere to the afore-stated principles, we shall find that the Federal Budget responds favourably to supply-sided economic proposals.
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment