Pakistan's annual budget for the fiscal 2004-05 is expected to be presented in the National Assembly some time in June 2004. Hardly about a couple of months remains before its presentation.
It is strange that nothing has so far appeared in the print or electronic media about it. Nor like in the past, any sort of seminars, workshops or other fora have so far been organised to sort out the matters to be included in this most important documents (Budget).
Of utmost importance in the preparation of the budget is to highlight the sources of obtaining public income and its utilisation on various matters known as public expenditure.
Of various sources of earning income through fixation yields the desired income comparatively more easily.
On the expenditure side, the doctrine of "social development" needs to be applied.
The guiding principle in this regard is that government should conduct its finance in such a way as to secure the maximum social welfare.
Whether an item of public expenditure is justifiable or not depends on its character and composition.
Some expenditures may be heavy but if they are in the nature of capital investment for ultimate national welfare, may outweigh the present budget burden.
Some other expenditures, though not heavy, cannot be justified if they are enumerative.
Some expenditures that are incurred for the prevention of the community from external attacks or internal disorders, are justified from the stand point of total welfare, though not so from the economic welfare point of view.
For obtaining revenue for preparation of budgeting estimates, taxation is considered the main source.
As such, the nature and the method of tax system employed is of prime importance.
The same amount of revenue obtainable through different methods of taxation may be lighter than under other methods, yet the burden of taxation under one method may be higher than under other method.
In no case should the productive capacity of the community should be adversely affected by the taxation employed for earning revenue.
According to the renowned economist, Hugh Dalton, "the economic welfare may be justified by means of improvements in productive power and distribution of what is predicted."
DEBTS: In case adequate revenue for estimating budgetary needs are not likely to be obtained from taxation or other methods, efforts have to be made to secure debts both internationally and domestically.
Debts in any case have a unique position of falling both under the category of "income" and "expenditure."
While income comes under the scope of public revenue, the payments on account of principal amounts and interest fall under the scope of public expenditure.
Presently the government is grossly indebted in this regards as a result of securing foreign debts without any sound planning of utilising them in profitable development projects and schemes. It is, therefore, suggested that this time the government should use this facility sparingly and objectively.
Lastly it is brought to the notice of the authorities concerned with the preparation of the budget, that the services of the retired public servants still having sound physical and mental health, and willing to contribute their bit for national development, may be obtained for the purpose on the Japanese manner.
It is understood that in Tokyo (Japan) a residential colony of retired government personnel qualified in different economic and social fields has been established.
Their services as a rule are obtained by different public agencies as and when needed. Necessary details of this project may be obtained by our Foreign Ministry for emulating it mutis mutandis in our country.
PLACE OF AGRICULTURE IN THE BUDGET: As usual, a popular question after the presentation of annual budget in Pakistan asked is that "does it offer any thing new?"
The answer never comes with a complete silence. As such, in order to add a new dimension to the years-old pattern of the budget, it is suggested that agriculture (now having assumed an industry status from the "way of life" should be accorded a special treatment in budget-making process.
Some conservative economists, including financial wizard in the government, may raise their eyebrows when I suggest that henceforth separate annual budged be prepared and presented for agriculture quite independently and distinct from the general annual budget. But I am sure that this would work very well to boost our industry of agriculture.
In the proposed budget income may be derived from the Dhall/Malguzari, also by means of taxing income obtained from agriculture.
The total income so drived, I guess, would surpass the expenditure estimates and may be utilised generously to uplifit the face of our agriculture by giving loan/credit to the needy farmers as well as for undertaking various agricultural development measures.
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