Life-oriented Budget Required

Though it is said on focusing health sector, the budget for 2021-22 fiscal year is coming with the highest allocation for mega 10 projects in the development sector including construction of Rooppur nuclear power plant. The size of the budget in social security program is also increasing Tk 6 lakh 3 thousand 81 crore as Tk one lakh 25 thousand crore is being allocated in this sector by different ministries. This is about 30 percent more than the current budget.

The country's health, education, employment and business have been hit hardest by the two-time global pandemic coronavirus. People's livelihood has been disrupted. In this context, this will be the second budget of the country after the pandemic coronavirus outbreak began.

However, the Economists are saying that in order to recover the damaged economy, increase employment and increase investment, the budget of the upcoming 2021-22 fiscal year needs to be life-oriented. Where the allocation to the social security sector should be 4 percent of GDP. Because if people cannot return to their workplace, the economy will not recover. Besides, adequate allocation should be made to normalize the calamity that has come down in the education sector due to the closure of educational institutions in the country for about 15 months. 

According to the finance department, the size of the social security program is also increasing in the budget of Tk 6 lakh 3 thousand 681 crore for the next 2021-22 financial year. Due to the Coronavirus outbreak, the health sector is getting the most importance in the budget. In this budget for the fiscal year 2021-22, an allocation of Tk 32,731 crore will be proposed for the health sector. In the budget for the current fiscal year 2020-21, there is an allocation of Tk 29,247 crore in the health sector. As such, from the current financial year to the next financial year, the allocation is increasing by Tk 3,484 crore or 11.9 percent. However, even if the allocation increases in proportion to the total budget and the percentage of GDP is calculated, the allocation does not increase.

Meanwhile, in the next budget of 6 lakh 3 thousand 61 crore taka, the size of expenditure in development sector (ADP) is 2 lakh 25 thousand 324 crore 14 lakh taka. This size of the new ADP is Tk 20,179.35 crore more than the original ADP of the current financial year.

In this regard, the total revenue in the budget of the next financial year has been estimated at Tk 3 lakh 89 thousand 78 crore. This is 1.84 percent more than the target of revenue collection in the previous fiscal year. Out of the total revenue, the income from the National Board of Revenue (NBR) has been estimated at Tk 3 lakh 30 thousand 78 crore. In this case, the income target has been kept unchanged.

In the new budget, Tk one lakh 37 thousand 299 crore 91 lakh will be taken from the internal sector to bridge the income-expenditure gap. The remaining Tk 88 thousand 204 crore will be loaned out from foreign sources. And to meet the budget deficit, a loan of Tk 93,000 crore will be taken from the banking system which is Tk 9 thousand crore more than the current financial year. In the current fiscal year 2020-2021, the target for borrowing in this sector is Tk 84,980 crore. Apart from this, the target for borrowing from savings certificates has been set at Tk 32,000 crore. In the current financial year which was Tk 20 thousand crore. Later in the revised budget which was increased to Tk 30 thousand crore.

According to Finance Department, the incentive packages announced this year have been successfully implemented to address the ongoing Covid-19 and additional allocations have been made in the health sector. In addition to food security, priority is being given to agriculture, job creation, expansion of social security programs, housing for the homeless poor, free and low cost food distribution among low-income people affected by the Corona and overall human resource development (including education and skills development). Allocations are being made in the same way.

Economists and people of different professions in the country are of the opinion that in this difficult time of epidemic coronavirus, the new budget should focus on the development of life and livelihood and not on economic growth. We have to pay attention to the health and social security sector. Allocated to the health sector, vaccination, ICU, ventilation, doctors, nurses in these sectors, so that these are adequate. Health services should not be disrupted due to the crisis. That has to be confirmed in the next budget. Allocation needs to be increased in this sector. There needs to be a common social security system. If it had, it would have been easier to protect the newly impoverished. Therefore, at least 4 percent of GDP should be allocated to this sector. New allocations in the health sector will be a waste of money, will not benefit people at the end of the day.

Educators say that while all educational institutions in the country have been shut for more than a year, TV and online teaching have continued. However, in the face of various adversities, the teaching process is not getting much success. Especially in the case of online teaching, the Ministry of Education does not have the financial, technical support and involvement. Online classes are not being successful due to various problems including internet access and devices. At the village level, students did not get the opportunity to attend online classes. Earlier, education and religion were allocated together in the budget. It is now very important to bring back the educational life of the students with special allocation for education.

According to Zahid Hussain, former lead economist at the World Bank, the biggest challenge now is to deal with Coronavirus and its influence. The next budget that needs to be given more importance is in the health and social security sector. Allocated to the health sector, vaccination, ICU, ventilation, doctors, nurses in these sectors, so that these are adequate. Health services should not be disrupted due to the crisis. That has to be confirmed in the next budget.

According to him, it is also necessary to ensure that the allocated funds are used properly and correctly. Because even if the infection is prevented quickly, the impact will not go away quickly. The budget is not just about financing the health sector, we need to come up with a clear idea of how we can deal with this Covid-19 situation through proper management. There is a need to increase vigilance to ensure that the ongoing projects, such as employment and boosting the rural economy, are properly implemented.

Ahsan H. Mansoor, the Executive Director of the Policy Research Institute says, the budget for the new fiscal year must be a transition from Corona to the country's economy. The allocation for the health sector will have to be increased in the next budget. That money has to be spent properly. Social security programs must be taken. We have to help the poor and the unemployed. The SME sector needs to be greatly supported so that employment comes back through them. Revenue will not increase this year. Because the economy itself is not strong, stagnant. There may be two or three more waves ahead. We have to be ready for that.