Balochistan’s Budget: A Critical Appraisal

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Ayaz Ahmed
In simple economic terms the budget is the summary of all financial expenditures of a government in a fiscal year. In the developed countries, the “political government” seeks all-out assistance from experienced economists and reputable think tanks in preparing the budget aimed at maximising the revenues of the country for the socio-economic prosperity of the people. On the other hand, in Pakistan especially in Balochistan, the incumbent political party most often determines the annual budgetary allocations to different sectors without consulting a good number of renowned economists and relevant think tanks. Therefore, both the country and its backward province have thus far utterly failed to make economic strides from many an ill-crafted budget.
The PML-N led provincial government has recently announced the budget for the fiscal year 2016-17  with a total outlay of Rs. 289.356 billion along with a deficit of Rs. 36.485 billion. The new fiscal budget includes Rs. 218.174 billion of non-development expenditures and Rs. 71.182 billion of Annual Development Programme (ADP). The income of the province during the new fiscal year 2016-17 has anticipated to be over Rs. 252.871 billion which includes federal receipts from the centre under the National Finance Commission Award and Federal Divisible Pool. The provincial government will also receive Rs. 10 billion from Islamabad under the head of Gas Development Surcharge.
As per details, the receipts from the divisible pool are Rs. 182.605 billion; direct transfers, Rs.  14.238 billion; others, Rs. 10 billion while capital revenue receipts will amount to Rs. 36.908 billion. The province will get an income of estimated Rs. 9.120 billion from its own resources. The foreign aid for the province has been estimated at Rs. 6.181 billion.
According to media sources, the provincial government was bereft of trusted, experienced and competent economists while preparing the budget after the arrest of suspended Finance Secretary Mushtaq Raisani. This speaks volumes about the seriousness and political competence of a democratically elected or “selected” government in terms of deciding the development and socio-economic prosperity of an already backward nation. It also raises a string of questions about the capability, experience and political sagacity of leaders in the province. What can be realistically expected from such a budget to provide balm to the suffering people in Balochistan?
The development of a country and province for upcoming year can be easily ascertained by going through the budgetary allocation to the sector of research and development (R&D). The provincial government has earmarked Rs. 71.182 billion for total development expenditure, including schemes for education, health, law and order, agriculture, communication, infrastructure, water and energy sectors. Out of which Rs. 6.182 would be financed by Foreign Projected Assistance (FPA). How would it be possible to modernise the dilapidated infrastructure of Balochistan with this meagre amount coupled with the spectre of massive corruption and misallocation of development funds? The province is already plagued by massive outages and lacks an adequate number of dams, roads, research centres, seaports, industrial zones etc. The vexing question is: How can Balochistan keep pace with the rest of Pakistan in terms of upward economic trajectory without enough development resources at hand?
Developed countries tend to prioritise education in every new budget. A sum of Rs. 42.67 billion has been allocated for education in the budget, which is 11.49 percent increase as compared to last year. However, only 6.65 billion have been allocated for development budget of education as compared to the figure of Rs. 10.19 billion last year. It was decided to establish three medical colleges in Khuzdar, Loralai and Turbat and 70 middle schools were suggested to be upgraded to high school in different areas of the province. It was also announced that 14,000 students from Balochistan would be given scholarships in national and international educational institutions.
Read Also: Balochistan Budget: Analysis of Education Component
Arguably, after subtracting the share of corruption and misapplication in this amount, only a fraction remains to be utilised on education. Hundreds and thousands of school-age children are out of schools in Balochistan and a large number of educational institutions desperately lack requisite tools and trained teachers. How would it be possible to develop Balochistan and morph Gwadar into a mega city without educating and training the indigenous people? If education does not take precedence over all other sectors, it is futile to embark upon grandiose plans of political reforms and economic growth.
Needless to say, the province is plagued by deteriorating law and order situation due to the disruptive insurgency and undertrained, poorly equipped, highly politicised and toothless police force. The government has allocated just only Rs. 30.25 billion for law and order which includes the provision of modern weapons and vehicles to police, Levies Force, Balochistan Constabulary and financial assistance to Frontier Corps under these allocations. This amount is even inadequate to pay the salaries of the current total police force and meet its patrolling expenditures. Balochistan is under attacks by some regional countries aimed at sabotaging the CPEC. How can the government continue its projected development initiatives without an effective security system in place? Therefore, it must be the top priority of the government to ensure lasting security and serenity in the province. To make the province’s security foolproof, the police need to be increased in number, trained and equipped with all modern tools of security.
Despite having a large number of jobless graduates and skilled labours, the provincial government has decided to create around 3,000 new jobs in the forthcoming year in government departments for unemployed youth.  It should not be forgotten that both Balochistan and Gwadar are at a crossroads of development and socio-economic prosperity. Providing 3,000 jobs amounts to adding salt to the festering injuries of hundreds and thousands of jobless youths in the province. The elected leaders have forgotten that unemployed youths are prone to anti-state activities when they lack the basic needs of a decent life. Moreover, while depriving the local people of just share in development works, the government is unintentionally helping insurgent outfits to attract more and more youngsters towards their nefarious designs.
Despite living in lingering crisis, the political leaders in Balochistan have so far failed to run a federating unit in an effective and efficient way. One can only hope that one day the elected leaders of the province will learn the requisite skills of administrating a country with good governance.
Writer is a Featured Columnist for Balochistan Voices
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