Introducing 'reforms

Both Finance Minister Hafiz Sheikh and Law Minister Babar Awan left little room for doubt on Saturday that the government merely intends fulfilling the formality of effecting a cut in its expenditure, which forms part of the PML-Ns 10-point agenda. The underlying idea of the agenda that has also been the subject of public debate for long was that the government gave up the lavish style of living it is currently maintaining. The reduction in budgetary allocation for development projects by as much as Rs 100 billion out of a total of Rs 280 billion, which works out to about 36 percent, is, in the ultimate analysis, going to work to the disadvantage of the common man. Defying the public outcry against the project to construct parliamentary lodges at a cost of Rs 3 billion, unquestionably the most outlandish and callous idea at this time of backbreaking inflationary pressures, Mr Sheikh stated there was no intention to abandon the project. He accused big business, in collusion with politicians, of being behind the campaign against the Reformed General Sales Tax. Somehow, the Finance Minister sees the controversy about the RGST as part of political manoeuvring, little realising that, principally, it is a question of preventing an additional financial burden on the average mans budget. It would not only be the increased tax money that he would have to pay, but also the challenge of a wave of price hike the RGST would set off that he would have to face. Mr Sheikh dropped a hint that rise in the international price of oil would necessitate raising the local price. His other contention in the context of the RGST and oil price that international commitments ought to be honoured, points to the vice-like grip in which the IMF holds the country, thanks to the governments ill-conceived policies. The answer to the whole dilemma lies in practising austerity and taxing the sectors of economy, like agriculture, that have managed to escape from the tax net so far. The right-sizing the Cabinet, Mr Babar Awan pledges, is no more than eyewash. If five ministries were to be merged and 13 transferred to the provinces, the country would not benefit much. The provinces would soon be raising the required staff any way. It is the innumerable perks and costly privileges that the ruling classes appropriate for their use that are cutting at the root of all plans to bring down expenditure. Unless sincere efforts are made to that end, nothing would help. The government needs to sit down with its coalition partners to decide upon a rationalised scheme about the allocation of portfolios. The negotiations the PPP and PML-N are holding must work out a plan of action to reduce expenditure that conforms to national interests and not obeys outside command.

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