Federal budget made to ensure victory in general elections : Dr Murtaza Mughal

Lahore: The Pakistan Economy Watch (PEW) on Thursday said federal budget which has been designed to please rural elite which will help ruling party to win next general elections. Government plants to reward landlords to get votes from areas lying under their influence, it said.

The anti-masses budget proves that economic managers are not willing or capable of a budget that can increase tax-to-GDP ratio and ensure just distribution of wealth, said Dr. Murtaza Mughal, President PEW. He said that sustainable growth require bold actions and long-awaited reforms which have been ignored to spare rich and hit poor.

Dr. Murtaza Mughal said that FBR has always preferred indirect taxation over direct taxation which has left half of the country population reeling below the line of poverty. Agricultural sector having a share of 20 percent in the GDP is not paying any taxes, industry is overtaxed, corporate sector is in trouble, and foreign investment has dried up while ruling elite have made new records of incompetence, mismanagement, and corruption.

He said that economic managers are not ready to undertake serious reforms which has damaged economy while they are known to paint rosy pictures of the situation which result in mini budgets soon after the announcement of Federal Budget. Finance Minister has claimed GDP growth to be 4.7 percent but independent sources insist that it was not above 3.1 percent. Budget has pleased exporters and landed aristocracy but it has not benefitted masses in any way.