Miscarriage of development

THE Federal Government has slashed next year’s proposed development budget by Rs. 126 billion while three provinces, except Balochistan, would freeze their uplift expenses at current levels to create a fiscal space of Rs. 500 billion for strategically important initiatives. This was the sum total of the understanding reached between the representatives of the PML(N) and the PPP on budget related issues that have already caused a delay in the presentation of the new budget. It might be a breakthrough for the Government as the deal has paved the way for presentation of the budgetary proposals before the National Assembly but for all practical purposes, it is miscarriage of the development spending, which has been axed even before its birth. There can be no two opinions that the country is facing serious security challenges both internally and externally and the defence forces and the law enforcing agencies have to be adequately equipped to discharge their responsibilities effectively. The threat is amplified by the volatile situation both on eastern and western borders as well as intensified terrorist activities. The Centre was logically pleading that the provinces should agree on a reduced share from the National Finance Commission (NFC) award as the federation is left with scant resources to take care of defence and security needs. Similarly, the argument that the Benazir Income Support Programme (BISP), the size of which continues to balloon every year without producing any tangible or intended results, should be either discontinued or provinces should take over the programme. However, the PPP — the direct beneficiary of the two issues — opposed tooth and nail any proposition to reduce provincial share from the NFC or absolve the Federal Government of the responsibility to run the BISP, which has become a major liability. The solution found i.e. to cut development expenditure is in direct conflict with the stated objective of the Government to stimulate growth. Apa