AT the outset, it must be appreciated that the government has unveiled the budget 2024-25 underextremely onerous circumstances. Multiple balls have been in the air from political considerations to IMF expectations to curtailment of cash economy to debt management and, above all, to plan economic revival and growth and none of them can be afforded to be dropped.

In this backdrop, it`s visible that the finance minister has put his best foot forward and tried to balance the competing ambitions; thereby, establishing the stage to travel towards the eventual goal of growth and eradication of poverty.

There are some unprecedented moves in the budget like substantial removal of tax concessions and making life difficult for non-filers aiming to eliminate this category eventually that possibly would prove to be a forceful strike on the undocumented sector.

While I believe this distinction between filers and non-filers shouldn`t exist, eliminating it in one budget would have proved disruptive to the economy, which we can`t afford with our already anaemic economic growth. The effort to curb unproductive and speculative real estate activity by introducing capital gains tax and federal excise duty is commendable indeed. And so is the endeavour to register retailers and wholesalers. The plan to consolidate overlapping government divisions and departments is another key reform.

While rationalising pension expense is a great move, a better job was expected on the expenditure side, i.e. the government`s operational expenses and development programme. Rather than abruptly transitioning the export sector towards the regular tax regime, the government could have considered a staggered approach. To mitigate the unfavourable impact of swelled taxation on exports, as a better tradeoff, the prime minister has announced a Rs10.69/unit cut in electricity tariff for industries. Having said that, it`s one thing to announce budget measures, and it`s another to implement them. The proof of the pudding is in its eating relentless execution of the budgetary actions and economic revival and growth plan (homegrown that the prime minister and the finance minister keep on referring to). The capacity to stand painful reforms will be instrumental in managing liquidity risks, both on external as well as fiscal accounts. •