Budget didn't meet expectations: analysts
The proposed cover another fiscal year has didn't properly reflect medical and livelihoods crisis created by the Covid-19 pandemic and take more than enough measures to take the country out from the catastrophe, analysts said yesterday.
Their views came at a digital dialogue organised by the Centre for Policy Dialogue (CPD) to discuss the measures under the proposed Tk 568,000 crore budget for 2020-21.
Discussants said health, social protection, income generation and job creation must have been the main focus of the spending plan to deal with the deadly virus and have the economy back again to its higher growth trajectory.
However, rather than attaching the highest concern to these areas, the federal government offers framed the budgetary actions in a business simply because usual way centred around financial growth.
In view of the problem, analysts suggested the federal government take the next fiscal year's budget as a powerful document so that it can revisit and take corrective measures during the implementation phase.
They recommended reforms in earnings administration to increase earnings collection, increased allocation for the social back-up programmes, and discarding the program to increase supplementary duty on mobile phone usage.
Salehuddin Ahmed, a former governor of the Bangladesh Lender, said banking and capital marketplaces were in problem prior to the Covid-19 pandemic. And the ones problems have deepened.
"So, we'd not expected a regime budget. Various argue that the finances is a routine matter. It really is okay. That which was expected is normally a non-routine spending budget in the special conditions so that we are able to face the Covid-19 pandemic and address various other problems. But we could not do this," he said.
He said initiatives must have been taken for reforms found in the banking sector, the administrative centre market and at the National Plank of Revenue to improve revenue collection.
CPD Distinguished Fellow Prof Mustafizur Rahman, while presenting the think-tank's analysis on the budgetary methods, said the chance of Covid-19 even now exists and it needs a big drive to handle the pandemic.
"But we have not experienced that attempt in the budget," he said.
He said Tk 10,000 crore block allocation has been kept in the proposed budget but it is not clear how it could be spent.
Ahsan H Mansur, executive director of the Insurance policy Research Institute (PRI), said several budgets -- each half a year -- must have been framed instead of formulating a one-year budget.
"The first half a year should have centered on Covid-19 control, social safety net particularly for many who became unemployed and stimulus plans," he explained, adding that GDP growth-centric focus needed to be changed.
"It did not happen. Nonetheless, I think we ought to concentrate on Covid-19 control, livelihood support and execution of the Tk 103,117 crore stimulus bundle. If we can't do so, the economy won't rebound," he said.
The former economist of the International Monetary Fund requested the government to be equipped for the worst-case scenario as the coronavirus has continued to infect more folks.
Reforms of the NBR have grown to be urgent and one of the steps would be to separate revenue administration from policy rather than appointing earnings officials to frame guidelines, he said.
"Unless we can not shift our target to reforms in the income administration and increased earnings collection, the federal government will have to print money to pay salaries found in future in absence of fiscal space."
China centered on employment technology, not economic progress, said lawmaker Saber Hossain Chowdhury.
"Instead of concentrating on GDP growth, the priority ought to be to save lifestyle, livelihoods and careers," said Saber, as well the chairman of the parliamentary standing committee in the ministry of environment, forest and climate transformation.
He echoed others for an assessment of the spending plan for each and every two months during the pandemic.
"The budget is not the Bible and we have to revise it if the Covid-19 lingers," said Planning Minister MA Mannan.
"We'd expected that the effect of the Covid-19 will be gentler and that is why we framed the price range in optimistic and expansionary point of view," he said.
He, citing criticism over the heightened supplementary duty on cellular phone consumption, said it must be under review.
"This is not a business-as-usual calendar year," said CPD Chairman Prof Rehman Sobhan.
"This is simply not only a existence and death concern for people but also for the express of the economy and how it actually features."
He proposed an activity force among civil contemporary society organisations to screen and evaluate how the Covid-19 pandemic is addressed and the way the spending budget is spent to fight the disease.
"We have to be monitoring the methods social safeguard programmes are applied. We need a task push to monitor the task of the incentives programmes."
The overview of the budget should be done at least in half a year, if not three months, according to lawmaker Nahim Razzaq. "Proper implementation and monitoring of the stimulus package deal and significant reforms in the banking sector happen to be needed."
Despite requirements and expectations among the people for increased investment, the allocation in the health sector remains low, said Amir Khasru Mahmud Chowdhury, a former commerce minister and a leader of BNP.
"The context of the Covid-19 crisis had not been taken into consideration through the formulation of the finances. I feel that it is merely a small amount of a variation of the template of classic budget," he said.
"What is cited is the lack of capacity of the health ministry to implement the price range. But why doesn't it have the capacity?" he asked, demanding guaranteeing accountability.
He questioned the scope to whiten dark-colored money of them costing only nominal tax and added conditions must have been slapped that the money to be whitened ought to be committed to trade and industry.
Nihad Kabir, president of the Metropolitan Chamber of Commerce and industry, opposed the scope to legalise the untaxed cash flow. "We've always opposed this because it discourages compliant taxpayers."
Changes taken to the VAT rules for another fiscal year would harm businesses, she said.
Withdrawal of the VAT on the web would accelerate economic actions and offset the losses of income, said Syed Almas Kabir, president of the Bangladesh Association of Computer software and Information Services.
Kamran T Rahman, president of the Bangladesh Employers' Federation, demanded faster disbursement of the stimulus plans so that businesses can reopen and create jobs and demand.
He said domestic demand should be created. "If it is done, we are able to retain careers and create careers," he stated, suggesting inclusion of returnee migrant employees into non-farm sectors.
"All efforts will go in vain if strategies are done ignoring the issues of healthy living of individuals," explained MH Choudhury Lelin, chairman of the Health and Hope Hospital.
Maleka Banu, basic secretary of the Bangladesh Mahila Parishad, said concerns faced by women exacerbated during the pandemic.
"A large number of girls from garments, returnee migrants and tiny women business owners are losing jobs. We'd expected that there would be specific initiatives to address their concerns in the funds. But we've not seen any specific step," she said.
CPD Executive Director Fahmida Khatun moderated the dialogue.
Sayema H Bidisha, professor of the section of economics in the University of Dhaka; Ferdaus Ara Begum, leader of the business enterprise Initiative Leading Creation; Jalal Ahmed, a ex - more secretary of the financing ministry; KM Enamul Hoque, deputy director of the Marketing campaign for Popular Education, and Nazmul Ahsan, supervisor of the A4I Project of ActionAid Bangladesh, as well spoke.
