Raising Money Vs. Spending and Investing by Present Govt.

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As a layman taxpayer, I have my own view about how government is raising money and how it's spending/investing it.

We learn from common wisdom not to be an overspender or waster of resources. We should spend within our means and not live beyond it. The common-sense wisdom which applies to an individual or a family can be applied to government as well when they are planning for everyone collectively.

I have a problem with how our government has been raising money.

Just as the individual or family, the common sources to finance the monthly budget is income earned — i.e., wages/salaries/profit — or debt. A loan can be taken at times to finance important expenses, i.e., education, and when time is right we can return it. But we don't take debt to finance our holidays, usually. Some people may do, but that's considered not a very wise financial decision.

Government has been taking loans to finance infrastructure projects.

First of all, government needs to improve how they are raising money. We are still raising money as we have always been — by increasing the indirect tax and using a one-size-fits-all approach. This affects people especially who live under the poverty line. The much-needed reforms in taxes haven't happened.

We are still far from a tax-paying culture.

Instead of taking painful measures to correct the tax system, we use the easy way out and increase the indirect tax — as someone who goes on a spending spree in order to feel rich. Converting Lahore into Paris probably comes from there.

The spending priorities are not right.

If you have three mutually exclusive projects:
A) Renovating your house with marble tiles.
B) Sending your kid to college.
C) Paying grandpa's medical bill.

Won’t you question if someone is taking a loan instead of relying on income (tax vs. loan) and spending on Project A (spending and investing)?


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