4.14pc GDP growth recorded, highest since 2008-09

[Chak Bamu]

I would love if next year the governments sets a target of 7% and fails to achieve it by getting 6%..... Easily achievable targets are wrong targets.

I have enjoyed @hasnain0099 and @ziaulislam 's posts. Interesting points from both of them. I do find Zia's points very compelling in that without reform, there can hardly be any sustainable growth. PML-N already suffers from an image that they do not much care for Health and Education sectors. I think that PML-N will shift focus in the last year of their term to claim that they have made great strides for Health and Education. It is pertinent to note that PML-N's manifesto calls for spending 4% of GDP on Education by the end of their term. So, let us see when that happens.

 

[SBD-3]

I would love if next year the governments sets a target of 7% and fails to achieve it by getting 6%..... Easily achievable targets are wrong targets.

I have enjoyed @hasnain0099 and @ziaulislam 's posts. Interesting points from both of them. I do find Zia's points very compelling in that without reform, there can hardly be any sustainable growth. PML-N already suffers from an image that they do not much care for Health and Education sectors. I think that PML-N will shift focus in the last year to claim that they have made great strides for Health and Education. It is pertinent to note that PML-N's manifesto calls for spending 4% of GDP on Education by the end of their term. So, let us see when that happens.

For development spending government needs fiscal space....Which would only be available given deficit to gdp ratio falls. With a deficit near 5-6% of GDP, you can never expect to spend Billions on health and education. As you see that with the availability of more fiscal space (Budget deficit target of 4%) PSDP has grown by 263 Billion ( or 30%) over previous year which means more money for power sector, more money for infrastructure, education, health and social protection nets for combating poverty and underdevelopment. However, again, budget deficit to gdp reduction is also a gradual step and can't be done overnight.....Similarly allowing duty free import of textile machinary may put short term pressures on external sector but would help Pakistan to gain maximum from GSP+ in the medium to long run. And of course for 7% growth, we need something around 6.2-6.5% in the lagging year....

 

[ziaulislam]

real question is how do we gauge the govt performance, by its fiscal improvement? or its GDP growth..both havent shown miraculous improvement from PPP first few years.
then there is taxation which has decreased when it comes to direct taxes, even though an overall growth of 16% waas seen..
the net result is this...
point is once your generation is left uneducated, its a burden for decades
Education budget decreased despite promises - Pakistan - DAWN.COM

Mr Dar own words
People don’t trust taxation machinery: Dar - Pakistan - DAWN.COM
top bureaucrates not paying taxation in first place plus withdraw of taxes from already booming stock market, where as consumer good and economy class tickets are going to pay 30% taxs...

 

[SBD-3]

real question is how do we gauge the govt performance, by its fiscal improvement? or its GDP growth..both havent shown miraculous improvement from PPP first few years.
then there is taxation which has decreased when it comes to direct taxes, even though an overall growth of 16% waas seen..
the net result is this...
point is once your generation is left uneducated, its a burden for decades
Education budget decreased despite promises - Pakistan - DAWN.COM

Mr Dar own words
People don’t trust taxation machinery: Dar - Pakistan - DAWN.COM
top bureaucrates not paying taxation in first place plus withdraw of taxes from already booming stock market, where as consumer good and economy class tickets are going to pay 30% taxs...

It is pertinent to mention that an estimate of Rs80 billion was announced for education in the fiscal budget of 2013-14. And during a revised estimate, a budget of Rs87.8 billion was allocated.

However, on Tuesday, a federal education budget of Rs86.4 billion was announced, which is 1.6 per cent less than the revised estimate of last year.

The government spent more than the announced.....What does it tell you?....Something negative? Probably you should read the news in details rather than just pouncing for the title.
Secondly what do you consider direct and indirect also matters. The government implemented all the Adjustable WHTs in the current budget which means these taxes wont harm the taxpayers....I don't know why and how are you spiralling around the same point...
If you expected miracles, you would have been a fool........Btw you didn't agree with PML-N agenda, thats exactly why you voted for PTI.....So you were always expecting miracles and even if there would have been miracles, you would have been revolving around some point one way or another....

 

[ziaulislam]

Well i wasnt expecting miracles , only pointing out that poor revenue collection which translates in decrease spending gdp ratio wise in education cannot be called good performance by any standards .


The difference of opinion here is that i think govt has preformed poor due to no tax reforms while you think Its performance has been Splendid(8.8% even though highest direct taxes in the region) and that reforms are not possible in short time.

There is obviously no disagreement about govt will to abolish loadshedding and achieve the growth rate, but what will be the cost of electricity for the poor public ( despite it being coal powered) and what will be the spending on social Sector which if neglected will result in decades of problems

 

[ziaulislam]

And in my opinion mother of all problems is simply poor taxation and high direct taxes solve this and I will call the govt a saint, atleast achieve what you claimed in your election manefesto.