Mixed reaction over budget

The federal budget has come under attack by the public opinion leaders, experts, industrials, consumers and even the traders. Hyderabad Chamber of Commerce office bearers have termed budget termed as an election budget and said no steps had been taken for the development of trade and industry in the budget.
They said the government had increased the wages of workers but wondered where from a businessman would get this money to pay the workers. They said the increase in mark-up and gas charges would have negative effects on the industry. The business leaders, however, welcomed subsidy for fertilisers and encouragement to poultry industry and livestock sector.
Association of irrigation and agriculture termed it harmful for Sindh. Speaking at a news conference at the Hyderabad Press Club here on Wednesday, the Convenor of the forum Abrar Qazi said that as per the survey report, the government has miserably failed to achieve the growth targets of the agriculture and industrial sector.
They criticised meager allocations for health and education sector and showed displeasure over the increase in defence budget and non-development expenditure. They said that nothing had been done for Sindh, which was reeling under the impact of poverty and unemployment.
They referred to the allocation of Rs 88 billion for the lining of 87,000 watercourses and said only 10 percent of the targeted watercourses were lined last year, hence there was no much hope that that allocation would be utilised in Sindh.
He regretted that despite assurances by President General Pervez Musharraf, Thar coal deposits were not being utilised. They said that out of total power generation in America, 40 percent was coal-based while in China 70 percent of power was generated through coal.
The SDP leaders claimed that using Thar coal for 100 years from 35 per cent of Thar coal deposits could produce a 30-megawatt of power. They were highly critical of the inordinate delay in the construction of remaining 200 kilometres of road between Sehwan and Ratodero. They condemned the allocation of funds for the construction of dams without taking Sindh province into confidence.
Consumers Rights Forum in its comments has said the government had totally failed to come up to the expectations of the consumers in the budget 2006-07. The CRF said that the government had failed to identify "extra market forces" which were responsible for the upsurge in the prices of sugar, pulses and wheat flour.
The forum was of the opinion that 15 percent raise in the salaries of government employees would hardly make any difference for them.
It said that utility stores were just eyewash, as they could not cater to the needs of the millions. The forum, however, welcomed the increase of the exemption limit of salaried class but failed to understand the logic behind the tax on the withdrawal of money from the banks.
Sindh Abadgar Board (SAB) Secretary Mahmood Nawaz Shah said exemption had only been given on consumption side of dairy products whereas no attention had been paid to supply chain and marketing of products. He referred to sharp difference of rates in the sale of milk in rural and urban areas despite the fact that they were the 5th largest milk producers in the country and total value of the product was more than total cost of other major crops.
Likewise, he said food imports were recorded at 36 percent as compared to last two years while local production was being neglected as no incentive was given. He was critical of Rs 110 billion of which Rs 55 billion had been allocated to the power sector, which would in fact meet losses, which were being subsidised. He said that utility stores would remain inaccessible even if sugar and pulses were subsidised whereas those stores were not located in rural areas.
National Labour Federation (NLF) chief Rana Mehmood Ali Khan described the raise in minimum wages of workers in private sector as useless because Rs 3,000 wages were not being paid in 60 percent of cases thus payment of Rs 4,000 would remain questionable. He said that pension should have been increased by 40 percent as it would be without any impact for those who retired before 80s. NLF had already been demanding that Rs 1000 should be paid as dearness allowance to every worker having a salary of Rs 4,000 or more, he said.