PPP is busy in saving culpritts like Rehman and Zardari.MQM and ANP are promoting hatred and civil war in Karachi.Nawaz Sharif and his PML N are busy in saving an ineffective system based on injustice,corruption and inequality as after all they too are beneficiary of this flawed system.PTI's shadow cabinet takes another issue and offeres recomendation so that budget can offer some benefit to common masses.That's what differentiates PTI from other parties.Here is an artcile written by one member of PTI's shadow cabinet:
Pakistan Tehreek-e- Insaf
Economy And Budget 2010-2011
Issues And Recommendations
By Naeem Ul Haque, Spokesperson For Economic Affairs.
Economy----. Main Points/ Demands
1. Scrapping Of IMF Agreement (Which Has Stifled Economic Growth, Created High Inflation, Maintained High Interest Rates And Resulted In Massive Closures Of Factories And Joblessness. The Agreement Should Be Replaced By Bilateral Agreements With Countries Like Iran, Malaysia And Others Who Can Easily Provide Support Of 5-10 Billion Dollars From Their Massive Foreign Exchange Reserves.)
2. Immediate Lowering Of Interest Rates To Single Digit To Provide Essential Impetus For Economic Revival ..
3. Expanding Tax Base To Cover All Income Including Income From Agriculture, Real Estate And Capital Market Transactions.(Additional Rs 200 Billion Can Be Recovered Through This Measure)
4. Immediate Removal of Petroleum Surcharge by Rs. 20 per Litre. This Will Directly Affect The Lowering Of Prices Of Essential Goods.
5. Deferring The Vat For Another Year To Ensure Its Effectiveness And Its Reduction From 15% To 10%.
6. Reducing Non Development Government Expenditure By At Least 20% P.A. Every Year For The Next Three Years.( Saving Rs. 200 Billion P.A.)
7. Commodity Prices For Atta, Daal, Sugar And Ghee To Be Reducedby At Least 15%. Utility Stores To Be Opened 24 Hours. Independent Public Price Commissions Should Be Establish To Regulate Prices Of Essential Commodities .
8. Public Transportation To Be Introduced In All Cities With Subsidised Rates For The Poor.( Rs 500 Per Month Maximum ) And Free Travel For People Over Sixty Including Rail Travel
9. Benazir Income Support Program Has Failed Miserably And Should Be Scrapped. The Poor Have Not Benefitted From It At All As Inflation Continues To Grow Rapidly.The Money (Rs.35 Billion) Allocated For The Program Should Be Diverted To Health And Education. The Poor Can Benefit From Price Control Measures Suggested Above.
10. Completely Free Education In Government Schools And Colleges From Class 1 To 16. No Admission Fee, No Examination Fee And No Other Fee.( App. Rs25 Billion P.A. Additional Funds Required For Education Sector)
11. Comprehensive Health Insurance Cover For The Poor (Earning Upto Rs.6000 P.M.) App. Upto Rs 10 Billion P.A.Requiredfor The Health Sector.
12. Industrial Revival And Investment Program To Be Introduced With Incentives Like Free Land And Equity Investment By Government Owned Financial Institutions (Who Are Sitting On Surplus Funds Of Rs. 500 Billion.) Industrial Growth Rate To Be Targetted At 20% P.A.
13. Closure Or Merger Of Surplus Ministries At The Centre As A Result Of Abolishing Of Concurrent List.Privatisation Commission Should Also Be Closed Down As It Has Become Necessary For The Government To Support Big State Owned Ventures. Instead Of Selling Them Private Equity Participation In Them Should Be Encouraged .
14. Revitalisation Of Ministry Of Employment And Activation Of National Placement Bureaus. A Comprehensive Program For Training People And Creating Jobs.
15. Adhocism Must Be Stopped. All Economic, Financial And Industrial Policies Should Be On A Medium To Long Term Basis To Improve The Confidence Level In The Businessmen And Investors.
16. Complete Abolition Of The Vip Culture. Not More Than One Car And One Security Guard To Cabinet Members. No National Flag Flying On Ministerial Vehicles Except The Head Of State.
Budget ---Main Points/Demands
1. The Government Must Cut Down Its Non Development Expenditure ( General Public Services)From Over Rs. 1000 Billion To Rs. 800 Billion. It Should Start By Sacrificing Its Extravagant And Wasteful Expenditure Rather Than Burdening People With More Taxes. Every Government Department Should Be Asked To Cut Their Expenditure By 20%. ( After Abolishing Con-Current List, It Should Not Be Very Difficult)
2. All Income To Be Taxed Including Agriculture. Real Estate And Capital Market Gains Should Also Be Taxed. (Additional Rs. 200 Billion In Revenues Could Be Generated From This). No More Removal Of Subsidies During A Period Of The Gravest Economic Crisis For The Common Man In Our History. Minimum Taxable Income Should Be Increased From Rs 200,000 To Rs.360,000.P.A.
3. Subsidized Loans At No More Than 5% Per Annum For A Three Year Period For New Approved Industrial Ventures Which Create Jobs And For Projects Enhancing Agricultural Production ( Including Loans For Small Farmers).
4. Allocation Of Rs. 50 Billion P.A. Each For Health And Education Sectors And Rs Ten Billion For Social Welfare Programs.
5. Abolition Of Surcharge From Petrol And Utilities, To Remove The Biggest Bottleneck To Higher Economic Growth And To Ease Inflationary Pressures.
6. Corporate Income Tax Rate To Be Reduced To A Maximum Of 25%.
7. Setting Aside 10% Of All National Foreign Exchange Earnings In A Permanent Reserve Till It Reaches The Level Of One Year Import Bill With A View To Strengthening The Value Of The Rupee.
8. Sales Tax Should Be Applied At A Uniform Rate Of 15% And All Variations Should Be Stopped.
9. An Export Development bank should be set sp specialising In Trade Finance Techniques With A View To Help Achieve Higher Export Growth Rates
10. Measures Should Be Introduced To Bring Into The Tax Net Most Sectors Of The Black Economy. The Complexity Of The Task Would Require A Few Years For Implementation But The Process Must Begin.
11. Public Sector Development Plan Should Rely More On Investments Or Condition Free Grants Than On Loans.
12. The Issue of Circular Debt To Be Settled Within Three Months By Using A Mixture Of Cash/Debt/Equity Settlements.
13. . Setting Aside upto Rs. 100 Billion For A Comprehensive & Massive Agriculture Support Program Designed To Increase Food Crop Production By At Least 10-20% Every Year.
A Detailed Response To The Government Budget For 2010-11 Will Be Made Immediately After The Budget Is Announced On 5th June 2010.
