Re: PPP government’s crazy borrowing is similar to current US debt ceiling crisis
You are either naive or just pretending to be one. Every party is accountable for its own deeds. And you could have blamed MQM if it had finance ministry or if it was part of financial decision making in any other way.
As far as this recent problem, MQM has been demanding imposition of agriculture tax since long, but PPP wadera and jageerdar are not willing to work on it. Increasing tax net will definitely bring more revenue for government and reduce the reason for borrowing from central bank.
Broadening of tax net has also been a demand of various SBP governors.
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Politics/05-Jul-2011/SBP-asks-govt-to-contain-borrowing
KARACHI - The State Bank of Pakistan (SBP) has stated that the size of the fiscal deficit cannot be reduced unless the government controls excessive borrowing from the central bank, along with fully implementing fiscal reforms, according to State Bank’s Third Quarterly Report on the State of Pakistan’s Economy for FY11 released Monday. “Desirable revenue generating measures - broadening of the tax base, improving documentation of the economic system, gradual elimination of un-targeted subsidies and curtailment of quasi-fiscal operations are necessary to contain the fiscal deficit to below 4.5 per cent of GDP in FY12”, said the report.
MQM did not support last budget presented by PPP:
