KARACHI: Renowned economist Dr Ishrat Hussain, while addressing a workshop ‘Budget Discussion Forum’, organised by the Karachi Press Club in collaboration with Coca-Cola, has said that the government is unlikely to achieve the target of 5.1 percent for GDP growth in the current fiscal year.
Dr Ishrat Hussain, who is also Dean of Institute of Business Administration (IBA), said that the GDP growth may settle to 4.2 percent due to the underperformance of manufacturing sector though revenue target might achieve after revising it repeatedly.
He said that the revenues target could be achieved if policies are designed and enforced effectively throughout the country, which is not an arduous task, but the will of policymakers and proper mechanism is needed.
The tax collection authority could not only collect a target of Rs2,500 billion but it could surpass the benchmark of Rs4,000 billion which will not only reduce fiscal deficit and debt-servicing but it will also enhance the capital expenditures on public sector projects. If local bodies are restored to function efficiently, people will happily pay taxes to the government because the system delivers well to the public interest which was evident at times when district governments were performing visibly in Karachi before 2007, the Dean and Director IBA said.
In the budget, the government should allocate funds for federal, public and local governments in order to provide trickle down effects to the common man, he said. The budget should be based on spending on social sectors and development of public sector projects pertaining to infrastructure, which will attract private sector to invest in the country to generate employments, revenues and improved living standard.
