NOW that the budgets have been presented, the usual debates surrounding them are largely over, and the heated television talk shows have moved on to the next controversy, it is perhaps time to revisit some fundamental questions: What exactly is the role of government in economic growth? Which level of government is better placed to promote growth in Pakistan — the federal government or the provincial governments?

Sustained economic growth is a multi-year, multifaceted process. It does not emerge from an annual budget, which is a short-term statement of revenues and expenditures, nor is it the sole responsibility of the finance ministry. Perhaps the most absurd aspect of our economic management is the practice of setting a real GDP growth target every year and then comparing actual growth against it. If, in a lucky year, actual growth exceeds the target, the federal finance minister claims credit; if it falls short, they bear the blame. We ignore the fact that Pakistan is no longer a closed, planned economy wherein the state directly controls a large share of productive activity. Like other economies, it is globally connected, and its economic performance is shaped increasingly by technological changes, private investment,........

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