Economists: Proposed budget hardly prioritizes individual sector

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There are 75.7 million marginalized persons in the country

The private sector, afflicted through the Covid-19 induced shutdown, did not get priority for sustainable recovery in the proposed budget, economists say.

They suggested the federal government to implement stimulus plans properly so that small and medium-sized enterprises (SMEs) can continue their activities for survival.

The economists say there is no good news for the jobless and suggested the federal government give specific guidelines how important challenges of employment creation to be resolved.

According to Bangladesh Monetary Association (BEA), almost 36 million people have lost jobs because the first evening of the countrywide shutdown in March 26 to avoid the pass on of coronavirus.

Around 61 million people are currently employed in the country’s job market. Nearly 59.5 million people moved into numerous class structures during this time period, of which 25.5 million persons became extremely poor, it said.

The government declared general holidays from March 26 to Might 30 following the health authorities reported the first coronavirus cases in the united states.

South Asian Network about Economic Modelling (SANEM) said the informal sector employs around 89% of the full total employed youths found in Bangladesh and disruption of monetary activities due to the pandemic is affecting over 20 million youths.

Speaking with UNB, Prof Mustafizur Rahman, distinguished fellow by the Centre for Coverage Dialogue (CPD), said naturally the exclusive sector has been affected vastly as a result of Covid-19 pandemic.

“Many individual companies have been closed due to the impact of coronavirus. Various could not fork out salaries of their workers. Even, several workers have already been sacked from their companies. The sector was damaged heavily through the shutdown,” he added.

He added that the country’s poverty rate might soar back again to 35% as a result of affect of the shutdown from 20.5%. This could mean that 35% of the populace will be living below the poverty brand in Bangladesh.

Prof Rahman said the federal government has so far allotted some Tk103,117 crore under 19 packages which is 3.7% of the GDP to fight the coronavirus pandemic and guard persons amid the crisis.

“Important concerns came up on the cover FY2020-2021, however the informal sector didn't get priority as per its requirement. The federal government announced Tk20,000 crore low-interest working capital mortgage loan to the micro, cottage and SMEs. But it’s not enough according to demand of the sector,” he added.

Prof Mustafizur said the government tried to give focus on rural market and agriculture to lessen the challenge of employment. 

“That’s good but we have to offer priority to medical issues now. The federal government can think to allocate a regular monthly money handout of Tk8,000 for every single home of 75.7 million marginalized people of the country,” he added.

The proposed budget was announced with a “weak structure” as resource collection target in the budget is not realistic amid the prevailing situation of Covid-19, he said.

On June 11, Finance Minister AHM Mustafa Kamal placed Tk568,000 crore national cover 2020-21 fiscal with an ambitious aim for of 8.2% GDP expansion amid the monetary fallout as a result of coronavirus pandemic.

The entire budget deficit is estimated Tk190,000 crore, which is 6% of GDP. The revenue collection concentrate on has been placed at Tk378,000 crore.

A total of Tk29,247 crore was earmarked for overhaul of the health sector, which includes been battered by the Covid-19 pandemic, in the price range. Besides, a comprehensive method was used with four main strategies discouraging luxury expenditures and prioritizing federal government spending that creates careers.

Creating rural employment

Dr Ahsan H Mansur, executive director at the Coverage Exploration Institute (PRI), said there is little or nothing directly for the private sector in the funds but earlier the federal government announced stimulus packages.

“The proper implementation of the packages is quite significant. It will now be distributed properly otherwise the issues will even more accumulate,” he added.

Dr Mansur said the private sector has been afflicted immensely during the shutdown period. The effects would further upsurge in upcoming if coronavirus crisis remains.

“There are also lots of positive things in the proposed budget - the government laid focus on health, social back-up and agriculture. Funds implementation will end up being a large challenge for the government. However, victory will depend on works at the discipline level,” he added.

He said the federal government is currently perplexed amid the Covid-19 situation. 

“One time, the federal government said they are in risk in the problem. Again, the government said they'll create more career,” he added.

Anwarul Alam Chowdhury Parvez, president of Bangladesh Chamber of Sectors (BCI), urged the government to divert fund from transport and communication sectors to those that will play functions to regenerate the rural economy.

“Some 11.2% of the national spending plan was allocated for transfer and interaction sectors which isn't essential right at this moment,” he added.

Anwarul said it’s most urgent to take particular scheme to activate agriculture and cottage industry-based rural market for creating rural work to remove joblessness.
Source: https://www.dhakatribune.com

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