Growth oriented budget

In line with its oft-repeated commitments, the Government has presented the budget for the financial year 2026-27 with a total outlay of Rs.18.8 trillion that aims to facilitate movement towards realization of the cherished objective of growth, productivity and increased exports. As per estimates of the new budget, the economy is expected to grow by four percent while average inflation is expected to be recorded at 8.2%. Presenting the budgetary proposals in the National Assembly, Finance Minister Muhammad Aurangzeb announced relief measures for the corporate sector, salaried class, Information Technology, and real estate sector, hoping these would give a boost to economic activities. There is no denying the fact that the budget does not adequately reflect demands, needs and aspirations of people of Pakistan, who wanted substantial measures to check unbridled price-hike as well as expectations of the salaried class, whose representatives lodged a strong protest at the Pakistan Secretariat for a meaningful increase in pay and pension. However, it is understood that there are resource constraints because of the unwillingness of the affluent segments of the society to contribute their due share in tax collection and the authorities have to strike a balance in income and expenditure, especially in view of strict monitoring and accountability by the International Monetary Fund (IMF). Higher inflation is an undeniable reality but the Government adopted a miser approach in granting a nominal increase of 7% in pays and pensions against popular demand of 50%. This becomes all the more pinching in view of the fact that the Government lavishly increased pays and perks of the elite classes during the outgoing year. However, employees in higher income categories will have some sort of consolation as rates of income tax for four higher slabs have been reduced by three to six percent, which means an increase in take home salary. A 10% increase in the minimum wage sounds good but i