Gohar Ejaz Presents Shadow Budget to Government Ahead of New Budget

(Digital Ittila) Islamabad: Only a few days are left before the presentation of the federal budget for the new fiscal year, and various budget proposals have started coming forward from economic circles and the business community. In this regard, former caretaker minister and Chairman of Economic Policy and Business Development, Gohar Ejaz, has presented a comprehensive "Shadow Budget" to the government and demanded serious consideration of it.

According to details, the proposals presented by Economic Policy and Business Development recommend major reforms in the tax system. These include reducing the maximum income tax rate from 35% to 20%, cutting corporate tax from 29% to 25%, and bringing down sales tax from 18% to 15% over the next three years. The proposals also suggest that the category of non-filers should be abolished to make the tax net effective, simple, and transparent. Similarly, it recommended setting the Federal Board of Revenue's (FBR) tax target at 14,500 billion rupees.

The shadow budget suggests a significant reduction in government expenditures, limiting them to 3 to 4 trillion rupees. In addition, repayment of expensive loans, a ban on the establishment of new government institutions, and handing over non-functional institutions to the provinces have been recommended. Furthermore, it has been proposed to expand the scope of single treasury accounts and stop keeping government funds in commercial banks. The document also emphasized activating the National Economic Council and the Council of Common Interests for reforms in the national financial system. Gohar Ejaz stated that the figures of the presented shadow budget are based on facts, and if the government or any institution has any objection, they should openly challenge them. He added that the business community will not accept unconsulted decisions, so these proposals must be seriously considered. According to economic experts, these proposals could intensify the budget debate, but the final decision will only emerge after the approval of the federal budget.