No further evidence is needed of government extravagance than the figures for official debt. According to the latest figures made available by the State Bank of Pakistan, government borrowing has risen from Rs 3758.7 billion to Rs 4490.9 billion, an increase of Rs 732.2 billion. The Report said that permanent debt had reached Rs 7712 billion, floating debt Rs 2299.8 billion and unsecured debt Rs 1411.7 billion. However, when one examines what the government plans for the future, it seems that it has not decided to give up the extravagance that has landed the whole country in this unfortunate situation, but has decided to continue its free-spending ways into the next financial year. Meanwhile, for the current financial year, total debt is expected to reach Rs 8.922 trillion ($106 billion), of which Rs 4.597 trillion is foreign debt, and Rs 4.324 trillion domestic debt. This shows that government personnel are already planning to spend the money borrowed next year, even though it has not yet been borrowed. The realisation at the highest level of government that Pakistan is a poor country in a harsh economic environment does not seem to have penetrated. There is still an unfortunate pro-spending attitude among the Cabinet as well as the permanent civil service, which ensures that debt will continue to mount. That more debt will be contracted is one of the basic assumptions of budget-making, and there is no consideration that it must be repaid in future, and thus will be paid by the taxpayer of the future. That it is wrong thus to burden the future seems to strike no one in government. One reason for this increase in national indebtedness is the participation in the war on terror, with money going to fund it not being spent on more public welfare. Also contributing are the policies foisted upon Pakistan by the IMF. Both can be easily abandoned, if only the government were to show a little bit of courage and self-confidence. However, abandoning the extravagance typical of the government is causing too much fear among beneficiaries.