Is it the government?

If the budget is to be strategic, as the finance minister says, and if it has to reflect the leadership’s resolve, as the prime minister says, and if it has to fuel structural reforms, as the entire cabinet says, then today’s budget will need to show the kind of courage that no previous budget has shown.

For this to happen, the government will need to be fearless.

Here’s the problem, though. The fear of being fearless haunts the budget makers more than it should. It is a fear triggered by the demands of assorted lobbies, pressure groups and political gravy trains. Only a fearless government can resist such pressure, defy such demands, and barrel ahead with reforms that Pakistan so desperately needs.

These needs are well known. On the revenue side, broadening the tax net and privatising state-owned enterprises remain key challenges. On the expenditure side, reducing the size of the government and reforming the pension system top the priority list among various other items. Not much can be done with interest payments, or revenue share of the provinces, or the defence budget. So, within these constraints, the government has to show courage and do what previous........

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