Budgets of Punjab and Sindh...Budgets of expediency

Editorial:THE FRONTIER POST
The most conspicuous of a number of commonalities in the budgets of Punjab and Sindh, is that neither ruling party has ventured to tax the farm income and once again let feudal barons continue to evade tax that they have been doing since the creation of Pakistan. Very obviously, the ruling parties — the Pakistan People’s Party and the Pakistan Muslim League-N – have their eyes focused on the next general election due in 2013 and can ill-afford to annoy the powerful feudal class that has a decisive political clout. Conspicuously, the MQM also failed to make their output to Sindh budget. Both provinces do not either seem eager to mobilize their internal resources. They rather depended heavily on the federation giving them their due under the Seventh NFC Award. Both the provinces have not either given indication of holding the next local government elections.
Punjab presented Rs654.7 billion budget earmarking Rs220 billion for the annual development programme (ADP). But taxation schemes seem poor as it envisages additional levies on motor vehicle (token) tax on engines greater than 1,000CC in power, swimming pools and farmhouses of more than four kanals in area. This scheme appears like a half-hearted taxation measure in not likely to give the government of the largest province a revenue more than Rs2 billion. The claimants of breaking the “begging bowl” will also get an American financial assistance of $200 million for development schemes. Punjab also hopes it would obtain a Rs48.61 billion loan to replenish its fiscal management from multilateral and lenders.
However, the most cruel joke junior Sharif’s administration has cut is that it would provide Rs20,000 one-time interest-free loan to 100,000 educated unemployed youth to start their small business. The budget revived the controversial yellow cab scheme that in 1992 robbed banks of Rs17 billion. The yellow cab scheme saw PML-N middle hierarchy cartels booking hundreds of the taxi cabs and later selling them in market at much a higher price. Both are said to be self-employment schemes but will Mr Shahbaz Sharif please tell the “small” business that can be started with Rs20,000.
However, what excels Punjab is its bid to generate some 500 MW of hydroelectric, thermal and solar power in public-private partnership for which a handsome amount of Rs9.4 billion has been earmarked and an energy department established that will also be responsible for small dams. A Chinese firm is coordinating in 120MW Taunsa Barrage hydroelectric power. Five more similar projects are also on the cards in addition to solar tube wells.
Sindh presented Rs457 billion budget with revenue receipts of Rs458.4 showing a surplus of Rs882 million. The annual development outlay is Rs161 billion while revenue from federal divisible pool is estimated at Rs251.9 billion, up by 21 per cent over the ongoing fiscal.
The largest and the second largest provinces of the country which have a population of more than 75 per cent, have shown no special initiative for education, health, safe drinking water, rural development and mitigating the sufferings of the people. They have also not given any scheme for poverty alleviation either, rather considering the Benazir Income Support Programme as a sufficient safety net for the poorest of the poor.