THE budget for the next financial year, announced on Tuesday, seeks to deepen fiscal consolidation in order to pave the way for a successful second review of the $7bn IMF programme in September.

This is apparent from the significant reduction in the consolidated national fiscal deficit target to 3.9pc of GDP from the original target of 5.9pc. The provinces, which have often been criticised for adding to federal fiscal woes because of their increased share under the NFC award, will contribute cash surplus of nearly Rs1.5tr, up 50pc from the Rs1tr they were required to contribute this year to hold down the national deficit.

Indeed,........

© Dawn