Discussing the Current Fiscal Issues of Pakistan we first need to consider the Federal Budget 2015-16, presented in the National Assembly on 5th June 2015. It may be noted that the ‘focus of the budget is not on growth; but it is rather on reducing the fiscal deficit’. The total budget is worth Rs.4.451 trillion, which is allocated for the current government activities by focusing on the economic growth and attracting foreign investment in the country, whereas, the budget also focus on the stabilization policy. Although, the common man point of view of the Budget does not provide a relief to the masses, because relief measures which are given in it for common citizen is not really up to the mark.
Following points are presented for the policy makers, which need their attention to address the Fiscal Issues of Pakistan:
- How to Raise the Tax to GDP Ratio.
- The Level of Security – Related Expenditure.
- Power Sector Subsidy.
- Management of Public Debt
- Size of the PSDP and Development Priorities.
- Fiscal Federalism and Decentralization Issues.