Budget 2023-24: Pakistan's Education Sector
With an emphasis on the education sector, the material supplied offers a critical examination of Pakistan's budget for the country's fiscal year 2023–2024. Here are some important things to think about:
The subject of education is provincial:
In Pakistan, the provincial governments have more authority and responsibility over the education sector because it is essentially a provincial issue. The separate province governments allot money for schooling.
Higher Education Commission (HEC):
In the field of education, the Higher Education Commission is crucial. The HEC is now spending Rs 65 billion, with Rs 70 billion set up for development costs. The Pakistan Endowment Fund has also been given Rs 5 billion for student scholarships.
Budgeting for laptops and sports:
A total of Rs 10 billion are allocated in the budget for 100,000 laptops for merit-based deserving students.
Sports:
A total of Rs 5 billion have been allocated in the budget for sporting events.
Three primary causes of the lack of enthusiasm among stakeholders are highlighted by the budget study for the fiscal year 2023–24:
Three primary causes of the lack of enthusiasm among stakeholders are highlighted by the budget study for the fiscal year 2023–24:
gloomy market sentiment:
A lack of optimism for a brighter future is the result of the market's negative impact. This might be the result of several elements influencing the state of the economy as a whole.
Lack of IMF program coverage:
The International Monetary Fund (IMF) program is not being used to fund the budget. Although it might be a budget that is good for the people, its viability might be in doubt without the aid of an IMF program.
Election Season:
Election season is anticipated to fall during the second half of the fiscal year, increasing market uncertainty. The budget will probably be modified by the new administration in accordance with its priorities and demands after the elections.
In order to relieve the burden on the populace, the State Minister for Finance emphasizes the need of reducing the budget deficit and raising the tax-to-GDP ratio. The government's top priorities include expanding the revenue base and reducing smuggling. But generating income is still difficult, particularly now that less tax is being collected from the official sector.
The former finance minister foresees a challenging economic environment with little in the way of foreign exchange reserves and upcoming debt repayments in the months ahead. It is anticipated that the budget will have little effect on key economic indices like lending rates, the PKR-USD parity, and inflation.
After the FY24 budget has been approved, Pakistan's political environment will determine how stable its finances will be in the future. The months of July through December will present substantial challenges to the nation's political, budgetary, and economic health if general elections are held in October 2023.
A lack of optimism for a brighter future is the result of the market's negative impact. This might be the result of several elements influencing the state of the economy as a whole.
Lack of IMF program coverage:
The International Monetary Fund (IMF) program is not being used to fund the budget. Although it might be a budget that is good for the people, its viability might be in doubt without the aid of an IMF program.
Election Season:
Election season is anticipated to fall during the second half of the fiscal year, increasing market uncertainty. The budget will probably be modified by the new administration in accordance with its priorities and demands after the elections.
In order to relieve the burden on the populace, the State Minister for Finance emphasizes the need of reducing the budget deficit and raising the tax-to-GDP ratio. The government's top priorities include expanding the revenue base and reducing smuggling. But generating income is still difficult, particularly now that less tax is being collected from the official sector.
The former finance minister foresees a challenging economic environment with little in the way of foreign exchange reserves and upcoming debt repayments in the months ahead. It is anticipated that the budget will have little effect on key economic indices like lending rates, the PKR-USD parity, and inflation.
After the FY24 budget has been approved, Pakistan's political environment will determine how stable its finances will be in the future. The months of July through December will present substantial challenges to the nation's political, budgetary, and economic health if general elections are held in October 2023.
