Quote:
Originally Posted by Bilal Hassan
My Dear friends,
I know many people here vent up their emotions against PML (N) because they dislike them and also because their favourite parties could not win the majority.....
A rational and neutral person who has little perspicacity and insight about Economics, he will definitely support this budget as in present scenario this is the best budget they could come up with, keeping in mind how little time and resources they have.....
Those who are lamenting that there is no increase in Govt employees' salaries, they must bear in mind that what this would cause.....
If they had increased the salaries, what would have been the impact?
The already whooping fiscal deficit would increase further and how the government would bridge the gap between revenues and expenses? They would go for deficit financing, which would increase the nominal GDP but the Real GDP would still be there, so it would ultimately give rise to inflation.....The CPI at this level is promising some shining aspects, if there is no increase in fiscal deficit then there would be little inflation which is signifying a solid economy not a bubble economy.....
Increase In taxes is Justified:
The macro economic indicators are showing a gloomy picture, the revenues have to be generated, the fiscal policy of this government seems to be very good till now as the non taxed sectors are being taxed and the indirect taxes that they are imposing would bridge the gap between expenses and revenues.....The monetary policy in this scenario won't be much effective as inflation will denitely be curbed if we see little adjustment in market mechanism, that is not artificial but real......
The dying economy needs these drastic measures and we all have to be patient as when you have to get an economy out of a vicious cycle, you have to swallow some bitter pills, but the long lasting impacts would be seen.....
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I was expecting such response from you keeping in view your support to PML-N. I neither like a specific party nor dislike any party. but the thing is that if they rellay want to cut the expenditures then why they made the following decisions :
1. Distribution of laptops. ( we all know what is the usage of those laptops)
2. 75 billion rupees for income support programme which only support the voters of PPP (2008-13) and now hopefully PML-N voters (2013-18).
3. Interest free loans - which will surely be given to their near and dear ones.
you might disagree with my opinion but it is naked truth.
As You are living in Pakistan , can 17 grade officer make his/her both ends met with Rs.30,000/month. surely not, then what will he do. He/she has two options which i have already mentioned in my previous post.