Beyond the numbers

THE budget is here and the government has rarely looked happier. For a change, the budget-related press conferences were held by confident ministers, eager to answer questions. They pointed out that the petrol levy had not been increased (there were rumours to this effect) earlier. They boasted (rightly so) about the reduction in income tax rates for the salaried class, which included the reporters and anchors whose questions they were facing. And they also pointed out the incentives given to part of the industry. They spoke again and again about their efforts to provide some relief to different sections while still being in an IMF programme. Indeed, the expectations were so low thanks to the previous years of heavy taxation that critics and commentators are conceding that the government has been able to carve out fiscal space for some concessions in the budget exercise — so far. I say so far because changes may be made as the document makes its way through parliament over the next two weeks. The committees overseeing it may suggest changes as the government has to make sure its allies remain on board. And more importantly, news reports indicate that the IMF approval for some of the proposals is yet to come. But despite the good news, the budget even in its current shape makes it clear the government, like its predecessors, has continued with some of its bad habits. Once again, real estate has emerged as the sector which will get concessions to provide a ‘kick’ to the economy. It is fascinating how in most ivory tower discussions, real estate is the big bad villain in the Pakistan economy but the moment a government, any government, is working on ways to grow the economy, it always zeroes in on real estate. Clearly, economists know nothing — especially not about the 40 industries that are directly linked to real estate and will grow the moment people buy plots and start constructing houses. The budget makes it clear the government has continued with some of its bad