By Yousuf Ibnul Hasan
National Budget reflect the values and priorities of the people? Can this budget or every budget have a remedy for monetary illness, economic crises and serious measures to reduce the pressure on the circulation of wealth?
Answering these questions is alike explaining to a blind who is also senseless to a level of duff and dump. But still, there should be an answer which is explained to the readers with logical reasons, keeping in view the present practices and culture of Pakistan’s monetary affairs. The reader’s acceptance or rejection is not the writer’s provocative. But the fact remains that past governments were best which governs least and so the rising smoke is alarming a fire under it.
In my opinion, a budget is a yearly practice to tell the nation where the money to going. The disappointment in the 2022 and 2023 budgets has the first reason is the bad management of the state towards its currency affairs. The second reason is political uncertainty, followed by the third reason which is the security threats from within and outside of the state boundaries. The last reason is the state that remains in a long war situation. In all the four conditions, the state players tried to normalize the citizen agitation by bringing temporary prosperity, but still, all reasons took the state to permanent devastation due to the system of organized lying on which our society is now acquainted and not founded.
In a reality, all the negative factors give protection to some political and economic opportunists who do not have the wisdom to find that the rising inflation is rapidly creating havoc in the taxation without legislation. The citizen is crying to let them live within their means and the penetrating inflation, keeps making a small class of people, wealthiest and richest, whereas the commonalities poorer and poorest. As a result, the prevailing standard of the living situation is getting violent, assailant, and terrifying the population like a terrorist or the armed mugger which can be seen as deadly as a hitman.
The people do not understand that it is a significant thing to remember that inflation should not be taken as the act of Allah but it is due to the Gods of their society, who are playing roles that is emerging as inflation and not a catastrophe of the elements or a disease that comes like the Covid 19. It should be clear in the mind of state players and the population that inflation is a policy by those who are chosen to be policymakers for New Pakistan and now the Old Pakistan.
The budget will not tell you the priorities of the people We have to understand that in the present form of inflation we are paying 30 currency units for a single Oven Bread, having a price of 10 currency units a year back, which used to be 1 unit per bread in the rule of a dictator in uniforms and 0.10 before the introduction of a democratic system in Pakistan till 1969.
Traditionally since 1970, every government leaves the treasury empty and debt in plenty. Every new forming government take an oath to the creator, to be honest, and declared the treasury has no wealth. Then promises to give the nation something for nothing, the sweet dreams that never come true. The new government first confiscate the wealth from the population, either by direct taxes or by the cruelly indirect tax of inflation. Economic remedies that were previously met between, by the previous with a claim that treasury was cupful, always been dish out in barrel and then rescued by foreign borrowing to keep the treasury filled. As a result, such ridiculous prescriptions brought unwelcomely after-effects.
The government is not realizing that the most threatening act to put the burden on is the inflation tax, which is the most deteriorating. It badly hits the poor and the middle class. It is an injudicious act of destroying the currency by creating money out of thin air to pay government expenditures and bills. This act results in the value of the currency decreasing rapidly, ultimately hitting the people getting into a higher cost of living. 10% of the elite class will have no effect on their living, but the middle class in the particular and lower class, in general, being wiped out by the evilest of all taxes.
Within the geographical boundaries of our country whoever controls the volume of money is the absolute master of all economics, industry and commerce. The prices and circulation of currency within the economic market does not control by the government. It is to be understood that the entire system is effectively controlled, one way or another, by a few powerful men at the top or hidden through underground wealth and resources owned by them and they dictate according to their own wishes and choices. People must know how periods of inflation and economic depression originate within their living standards.
It is evident to curb the inflation and bring the economic stability to a level upon which the common citizen affords its need in satisfaction. As a result consumption increase with affordability which also increases the production, distribution, procurement and industrialization which creates employment that decreases the crime in the society. It can only be possible if the economic liquidity is cost-effective for producers and consumers. The other factor is the documented economy that can only be possible if the large denomination of currency notes is withdrawn from the circulation and replaced with 100-unit currency notes, as the highest currency in circulation. By taking such high denomination banknotes out of circulation, the government could make a life of economic criminals to law-abiding citizens.
Large currency notes are not part of the consumer wallet. These are replaced by the plastic currency which is one of the sources of documented economy. Whereas large currency notes are the deterrent to the underworld, terrorists, and drug lords. tax cheaters, politicians, parliamentarians and black marketers. The recent election of the highest house of legislators is an example of how a large denomination of currency notes turn parliament into a cattle Bazar. We can also name the present denomination of notes in circulation as the currency of corrupt elites. Removing the high-denomination banknotes from circulation, directly reduce inflation to a very high rate and increase the volume of wealth in circulation.
According to an estimated volume which is stated by the source at Central Bank, the illicit money hidden or inflows are estimated to be 5.7 trillion, which is depriving the revenue market of an estimated value of over 60%. High-value notes do not play for the documented economy and instead act a terrifying role in the underground economy and an act of encouragement by the government to inflation and economic crime. If we look at the role of the State Bank of Pakistan in promoting the high denomination currency notes and the present state of the inflation in the country with a high volume of unaffordable prices, we can easily find it is “penny wise and pound foolish”. 10 million in 5000 notes, in 20 bundles of 100 can fit in the normal pocket, whereas billion can be fit in 24x15x8 inches box having a weight of 5 Kilos only.
For the legal economy, 500, 1000 and 5000 notes are absolutely useless when safe and documented means for the transaction need are available, like Cheque, Debit Cards or Digital transfers. Eliminating the large denomination of currency notes in the present situation which is decreasing economic indicators and increasing inflation there is no justification to please the economic criminals and financial crimes.
There is no reason to encourage monetary mischievousness at a cost of a poor citizen who is unable to face the economic threats that are coming in his or her life on a daily basis. 90% of the population is deprived to have treatment for Covid 19 due to the expensive treatment which can only be afforded by the population who are least affected by the high volume of inflation.
The Budget 2022-2023 urgently needed to give targeted help to struggling families of middle, poor and low-income communities who are denied the extra spending power due to the rise of inflation. Is this the national budget for common Pakistani, which support the elite and it is like screwing for virginity? Since 1969 every government use its right to be stupid but this government is crossing its limits by abusing the privilege. I do not write to insult; I just write my compliment on budget makers negatively.
Budget 2022-2023, people shouldn’t be afraid of the government. Governments should be afraid of their people now. Poor and weak hands are looking for strong and healthy throats to be plugged off from the wealthy bodied. Budgets are made for priorities and not for popularity.
(Author is a Columnist, Teacher, Trainer, Broadcaster, and Contributor to Islamic Banking, Economics & Finance since 1981. firstname.lastname@example.org.)
Posted by: Ch. Muhammad Natiq.