Governments have budgeted spending for a thousand years. Many of today's Budget traditions date back hundreds of years. The word itself comes from the French 'bougette', a little bag. Literally, it means managing resources according to predicted expenses. So more important thing is to stay within your means and take measures to acheive this.
It has been biggest annual excercises for the governments. Every year we see rise in expenses and rise in taxation. But in Pakistan, it is just mere paper work as nothing goes according to plans. Question is that has governments spent according to plans? Have they gone beyond their means or stayed in the limmits? It is not a rocket science to manage your expenses. Problem comes when we plan to raise our expenses but we dont plan to manage our resources. Taxation is the boggest source of revenue generation but it should not go abruptly. Logic of taxation is that it is levy on profit, so profit making enviroment need to be provided in order to generate more revenue. Nothing has been planned for the resources which generate taxes for the governments, but we have seen total opposite phenomenon. Cost of production has been increased via cost of electricity, gas, petrol, salaries, GST, import duties on production machinary etc. etc.
If you can not improve your income resources you should not plan for more expenses, it is as simple as that. But the governments know easy way out, that is lending. This has been happening for years and our generations are under debt which are not even in existence yet. Unless we plan our expenses according to our resources, this down trend will never change.
It has been biggest annual excercises for the governments. Every year we see rise in expenses and rise in taxation. But in Pakistan, it is just mere paper work as nothing goes according to plans. Question is that has governments spent according to plans? Have they gone beyond their means or stayed in the limmits? It is not a rocket science to manage your expenses. Problem comes when we plan to raise our expenses but we dont plan to manage our resources. Taxation is the boggest source of revenue generation but it should not go abruptly. Logic of taxation is that it is levy on profit, so profit making enviroment need to be provided in order to generate more revenue. Nothing has been planned for the resources which generate taxes for the governments, but we have seen total opposite phenomenon. Cost of production has been increased via cost of electricity, gas, petrol, salaries, GST, import duties on production machinary etc. etc.
If you can not improve your income resources you should not plan for more expenses, it is as simple as that. But the governments know easy way out, that is lending. This has been happening for years and our generations are under debt which are not even in existence yet. Unless we plan our expenses according to our resources, this down trend will never change.
