According to newspaper reports, in its debt policy statement tabled before the National Assembly, the government has admitted that various clauses of the Fiscal Responsibility and Debt Limitation Act have been violated.The act was aimed to bringthe revenue deficit to zero and curtail the public debt at 60 percent of the gross domestic product.In its compliance report submitted before the National Assembly,the government was bound to reduce revenue deficit to zero before June 30, 2008 and later it had to maintain a revenue surplus.According to the reports, the revenue deficit was recorded at Rs173 billion of the GDP in 2013-14 as compare to Rs649 billion in the last fiscal year. The act envisaged that the total public debt at the end of the 10th financial year — from July 1, 2003 to June 30, 2013– should not exceed 60 percent of the estimated gross domestic product for that year. The public debt was recorded at Rs16 trillion in September 2014, indicating a raise of Rs239 billion during the first quarter of 2014-15.The external debt liabilities were recorded at $64.4 billion in September andpublic external debt witnessed a decline of $1.4 billion due to translational gain on account of appreciation of the greenback.
On another note, the generally acceptable threshold of public debt is the 350 percent whereas thecurrent public debt to government revenue ratio stands at 440 percent. The liabilities and external debt services have also increased to 15 percent of the foreign exchange earnings, showing a ratio of 14.3 percent in 2012-13.
As a matter of fact, the government is lavishly spending national exchequer on non-productive sectors and the style of living of the people at the helm of affairs is not less than of the masters of the colonial era. The concept of public service is absent in the government functionaries and officials alike. There was a wholesale printing of currency notes during the previous government which has made a heavy dent in the national economy. Everything under sky has limits, but corruption has broken all the records in Pakistan and the corrupt elements are still enjoying every facility of life in this country at the cost of the taxpayers’ money.
The burden of loan is piling up and is hindering the growth and development of the country. The government should have to adopt austerity measures and curtail expenditures. But the government is fulfilling debt obligations by imposing more and more taxes on the general public. The petrol prices have been lowered but the ratio of sales tax on petroleum products has been increased to 27 percent. If this is the chemistry of the government’s resolve to bring an economic revolution, one can only say that God bless this nation.
