AT long last, the government appears to be moving forward on the possibility of some tax reform. The Reformed GST bill does not go far enough — the special exemptions, concessions and waivers given to special interest groups and special sectors have not all been done away with — and the overall tax dividends in the short term from the measures announced are minimal: between Rs40-65bn in the January-July period. In addition, no attempt to reverse an unjust and inequitable tax structure that burdens the poor more than the rich has been made. However, a start is a start and given the dire financial environment that the government is in, any revenue-generating measure by a state that has one of the lowest tax-to-GDP ratios even though it is burdened with extraordinary security-related expenses should be welcomed.

The government, though, has to overcome a hurdle first: the opposition in parliament and even some coalition members of the government have voiced reservations about or expressed outright opposition to the tax bill that must be steered through parliament in the days ahead. Will the government show the necessary resolve to move ahead? The tabling of the RGST bill appears to be linked to the demands made by the IMF, so what will happen if the government manages to secure the next tranche of the stand-by agreement of 2008 now? It's not clear yet if the government is firm on the matter and how much effort it is willing to expend on ultimately getting the necessary legislation passed. The RGST issue will certainly be a test of the government's ability to get things done on the legislative and governance front.

But the reaction from the opposition does deserve a deeper look. Clearly, the government has not handled the fiscal side well, allowing the deficit to mushroom by doing little to enhance revenue or cut non-essential current expenditure. Moreover, when it comes to inflation, especially of foodstuff, fuel and electricity, the casualness of the government's approach has allowed matters to grow substantially worse than they should have been. It is the right, even duty, of any opposition to point out such failings. But criticism is easy enough; where are the alternative polices of the opposition, or even the coalition members unhappy with the present state of affairs? What revenue-generating measures have they prescribed? What serious cost-cutting measures have they mooted that could put a dent in the fiscal deficit? If politicians are serious about helping the poor, they should begin by helping the government on the policy front by giving their best advice.