Federal Budget 2023 – 2024: What To Expect and Strategies for Financial Survival
Federal Budget 2023 – 2024 – Despite the debate whether Pakistan can perform or not, it cannot be denied that the country’s economy is currently stagnant. Stagflation refers to an economy with low growth and high inflation, where we earn less and spend more on goods and services that make us poorer in the long run.
The federal budget in Pakistan is scheduled to be announced on June 9, 2023, and some insiders have been doing the rounds on social media and some other sites. The Finance Minister has announced that the government intends to expand the tax base and register new taxpayers. However, little is known about the government’s other intentions and plans. However, given the limitations on what the government can and cannot do in stagflation, it is impossible to make educated guesses about the upcoming budget.
Federal Budget 2023 – 2024: What To Expect?
A move by the Finance Minister to jump-start economic growth and control inflation at the same time could lead to:
- Increase government spending for infrastructure projects, tax cuts, or targeted subsidies to stimulate consumption and investment.
- Adjustments in interest rates.
- Take measures to reduce government spending in non-essential areas, tighten monetary policy, control prices, or improve the efficiency of resource allocation.
- Structural reforms lead to regulation, labor market reforms or initiatives to improve productivity and competitiveness.
- Targeted welfare programs, progressive taxation, or policies for job creation and training.
- Invest in education, research and development, and infrastructure to lay the foundation for sustainable growth and sustainability.
This is likely to be a key feature of the upcoming federal budget. However, we caution that stagflation is not a short-term phenomenon and will take time to disappear, especially if the above-mentioned steps are taken and implemented. In short, we cannot predict when we will get out of this difficult phase. At that time, we should all be ready to survive.
Top Tips for Financial Survival
The average Pakistani has no magic wand to improve the the country’s current economic situation. However, as individuals, we can take the following steps to better survive in this situation:
- Make a budget based on your income, expenses, and financial goals. Save money by cutting back or identifying areas where you can spend less. Prioritize important expenses like rent, utilities, groceries, and tuition over entertainment. Compare prices and shop from stores that offer discounts and buy in bulk. Savings are very important as they combat inflation and economic uncertainty.
- Increase your income. It can be done even if you have a full-time job. Start a freelance, home business or work part-time to supplement your main source of income. The more money you have, the better you are protected against rising inflation. Build a cushion against inflation and reduce risk by investing in real estate, commodities and securities.
- Improve your job prospects by learning new and in-demand skills like copying. If possible, continue further education or participate in training programs.
- Avoid borrowing from formal and informal sources such as banks and individuals. In case of inflation, the Pakistani currency continues to depreciate, reducing your purchasing power. This goes double if you lose purchasing power as your debt accumulates.
- Pakistan may be far from a welfare state, but the government provides some social support through programs such as BISP and the Health Insurance Program such as Sehat Sahulat Program. Find out what this program offers and the requirements. There is no harm or shame in temporarily using such programs in current situation.
Also Read: Petrol Prices in Pakistan Decreased Up to Rs.30 (May 2023)
Conclusion
The jury is still out on the unprecedented nature of the current situation in Pakistan. However, what can be said with confidence is that by staying ahead of things, you are better equipped to stay on your feet. A proactive rather than reactive approach, coupled with the ability to adapt to changing times, is the safest way to survive tough economic times.