Editoral-A progressive budget

There are a number of pleasant surprises in Gilgit-Baltistan’s first budget. Firstly, the territory has divided the Rs12.98bn budget almost down the line, with Rs6.4bn earmarked for non-development expenditure and the rest going towards development spending. The creation of 1,500 new jobs has been announced. But perhaps the most welcome aspect is that a quarter of the budget for FY2010-2011 has been set aside for education. The number of scholarships for students from Gilgit-Baltistan studying in other parts of Pakistan has also been doubled. This indicates that the Gilgit-Baltistan government has its priorities right. Its finance minister has also announced austerity measures, saying that the government’s operating expenses had been reduced by 26.5 per cent while expenses on entertainment, gifts and purchase of physical assets had been frozen.

However, there is room for improvement. The revenue target is a little over Rs355m and the vast chunk of the budget consists of federal money. But considering the fact that the territory was granted greater autonomy only in August last year, it will take time before it can develop a proper economic infrastructure. The elected representatives along with the federal authorities must chalk out a strategy that will help Gilgit-Baltistan generate more income and reduce dependence on Islamabad.

Observers say that if Gilgit-Baltistan is given a greater share of the revenue generated by the Sost dry port — a gateway to trade with China — it will go a long way towards improving financial autonomy. Also, Gilgit-Baltistan’s tourism potential must be tapped. With its natural beauty the region can be a magnet for tourists if the proper infrastructure is in place. If the Gilgit-Baltistan government follows up on the promises made in the budget and gradually improves revenue generation, it may prove to be an example worth emulating for progressive fiscal management.

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