Leading economists on Wednesday termed Finance Ministers' budget speech as "vague" discourse that still required explanations and expressed apprehensions that the advantages of the budget may not reach the poor.
They said that government's proposed budget for the fiscal 2009 is based on its' election manifesto that intended to address some important issues like inflation, poverty, manufacturing, agriculture, etc.
"The budget speech was unclear and minister did not elaborate matters proposed in the budget," said economist A B Shahid. He said that minister's budget discourse was only a formality and the actual measures have not been addressed. There should be bold decisions, he urged.
He said that although the government raised subsidy on DAP but the raise is lower, as presently price of DAP bag is Rs 4,000 as compared to Rs 1,200 per bag in the mid of last year.
"The major part of the budget speech contains pledges and measures aimed at facilitating government employees, while there is a dire need of some bold steps for revival of economy," he added.
Muzamil Aslam, an economist at KASB, said that government has continued the micro economic policies by announcing special measures for cut in inflation. He said that government has not raised the tax burden on the local industry, which will help boost the industrial output.
"The Government has focussed on inflation, industry and agricultural sector, which are the prominent issues in the current economic condition," he opined.
He said that increase in the minimum wage, special Benazir support program, raise in pension and subsidies on food supply through utility stores will scale down the level of poverty and arrest rising inflation. The Rozgar scheme will create new job opportunities for the poor and unskilled labours. He said that government has addressed prominent issues at a right time, as presently the inflation continues to rise, agricultural output on decline and unemployment is simmering in the country.
The increase in the subsidies on DAP and announcement for further raise in wheat support price will encourage growers increase the cultivation of the crop.
Another economist Dr Shahid Hasan Siddique said that government has announced some positive measures including raise in the government employees' salaries, special incentives for agricultural sector etc, in line with the election manifesto. However, it has not announced policies or steps to meet the challenges of rising oil and commodity prices globally and locally, he added.
"The government has increased the taxes on different levels, however no step has been taken to enhance tax-base, while the revenue target fixed at Rs 1200 billion for the next fiscal is less than the expectations and it requires to be revised upward ," he added.
Although, the minimum salary has been increased to Rs 6,000 from Rs 4,600 and pension to Rs 2,000, which will make no difference in lives of masses as compared to simmering inflation, he opined.
He said that government said the grant under Benazir support programme will be distribute with the help of Nadra data, but it interesting to note Nadra did not have any data of poor families.
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