Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Thursday, January 17, 2019 01:27:09 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Pre-budget thinking : Address main economic policy issues

By
06th-Jun-2018       
Comments
Share your thought
Post a comment »
Read all () »

Dr. Md. Shairul  Mashreque :
Economic growth/ development in any country depends on proper formulation and implementation of economic policy objectives as well as appropriate premeditated governmental action to address the cardinal issues. The state through strategic policy framework seeks to achieve macroeconomic stability through resistant economic growth. Growth in GDP, GNP and increase in per capita income is considered of utmost importance. One of the requirements for sustained economic growth is an efficient fiscal policy. Monterey policy projects to ensure 'price stability', 'exchange rate stability', 'financial discipline', 'equilibrium in the balance of payment' and development of domestic money and capital market. At times it aims at checking inflation (Hossian and Chowdhury 1994: 4). Investment policy is intrinsically connected with economic growth.  
It needs to be mentioned that there have been substantial changes in various aspects of economic policies including macro enterprise development and financial institut6ions and investment.
A rapt attention has been given to agriculture sector, which is fraught with the contemporary issues like poor land management, exploitative agrarian relations and withdrawal of subsidies. Because of poor land management agricultural land is subjected to micronutrients deficiency with dependence on rice mono-culture  
Tendency to attain food self -sufficiency in an era of agricultural modernization with the use of chemical fertilizers and upto date irrigation techniques impair indigenous bases of cultivation.
The issue of sustainable agricultural development is thus a matter of utmost policy priority with conservation of scarce resources, prevention of depletion of land fertility, water resource management and use of age long practices in crop and non-crop sectors.
The issue of agrarian relation is conceptually connected with the exploitative system of economic relationship with skewed distribution of land, usurpation of land, share cropping and mortgaging. Legislative measures, notwithstanding, land redistribution has failed to reduce marginalisation of the small farmers and the landless.
As for the issue of subsidization of production inputs, unrealistic policy postures embedded in recent economic reforms in line with SAP go against the interests of primary producers of rice, cotton and jute. Agriculture sector has been left to fend for itself without favorable state patronization. The major elements of policy reform package recommended to agriculture and food sector are: gradual phasing out of the price stabilization and buffer stock operations, elimination of subsidies on minor irrigations equipment, seeds and fertilizers .
The forthcoming budget would be election oriented. This will be to placate the people who will participate in the election as voters. Expectedly the burden of taxation will not be borne by the tax payers and traders. A large list of development projects and huge money from budget will became inordinately ambitious thinking.  Even then the government should address the contemporary economic policy issues.  
Nevertheless the budget is expected to be election budget. The government is considering popular opinion while planning for the upcoming budget which will be the last one in its current tenure, with the next general election likely to be held in December.
Following an order from the Prime Minister's Office, the Finance Ministry has already started preparing the proposed budget for the fiscal 2018-19 focusing on tapping into the opportunities of the global economy, increasing remittance inflow and exploring new export markets. The work in this regard is in progress despite the fact that a new government will be in power when the next financial year ends on June 30, 2019.
Sources said the government, focusing on capacity building, is mulling an increased allocation in several sectors, significantly social safety, education and health.
The allowances, including those meant for freedom fighters, under the social safety net programme can be increased. Allocation for rural and agricultural development sectors is likely to soar noticeably while more employment opportunities will be created, the sources said, adding that the government will also give importance on human resource development.
Under the plan of infrastructural development, the ports, rail and road communication, and power and energy sectors will be prioritised. The issue of skill development to tackle climate change, on information and communication technology, and to help build a Digital Bangladesh will also be on the priority list. Finance Minister AMA Muhith had previously said that the budget size will be below Tk500,000 crore.
The proposed budget will be raised by nearly 16.5% compared to the current fiscal year's budgetary allocation. If so, the next budget will be of more than Tk468,000 crore. Meanwhile, the Annual Development Programme (ADP) allocation can be estimated at Tk178,296 crore, whereas the figure for ADP in the current fiscal year is Tk153,331 crore. The target of gross domestic product (DGP) growth and inflation rates could be set at 7.6% and 5.5% respectively over the same period when Tk340,770 crore is likely to be the overall revenue collection target. In order to increase revenue earnings, a law can be amended as well.
Mentionable, the total GDP volume will be of Tk2,574,100 crore in the fiscal 2018-19  against the ongoing financial year's GDP target set at Tk2,223,600 crore. The budget, the Finance Ministry sources said, will be designed keeping the matter in mind that the voters do not feel pressure due to it.
Unnecessary taxes and duties will be abolished and the government may launch e-payment and e-filling services to curb hassle in submitting income tax returns. The government can also introduce a 37-digit budget and accounting classification system aiming to ensure accountability and transparency regarding the spending from the revenue collected. Incentives and budget deficit may cover 1.1% of the total GDP, with the budget deficit being predicted to go up.
There will be low concerns about inflation rates since the possibility of fuel oil getting dearer is very little in the current year. According the Planning Ministry, the government has crafted plans for visible development centring the next polls, to keep the masses happy.
In doing so, it will push up allocation for several top priority projects, including Padma Bridge, Payra and Sonadia deep seaports, Rampal coal-fired and Rooppur nuclear power plants, Dhaka metro rail and liquefied natural gas (LNG) terminals in Moheshkhali that received Tk33,182 crore in the current fiscal year.
Thinking about increased allocation for sustainable agricultural development is a good one. The target of economic growth if reached will definitely contribute to economic resilience. In the national to be announced in 7th June 2018 the main economic issues would be addressed. Even then I suggest to prioritize the other economic sectors or sub-sectors like irrigation, small industries, food processing and fish processing and garment and jute products.
(Dr. Md. Shairul  Mashreque is a retired professor of Chittagong University).

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Ensure ideal working atmosphere for women


THE bike of Shahanaj Akhter, who became a social media sensation recently for her struggle to maintain her family by offering ridesharing services, was recovered from Raghunathpur area in Narayanganj on early Wednesday hours after it was reportedly stolen. Police arrested a Masters student in English Department of Tejgaon College ...

Football »

Struggling Fulham sign Babel from Besiktas


Fulham signed former Liverpool forward Ryan Babel from Besiktas on Tuesday as the Premier League strugglers bid to bolster their spluttering attack and avoid relegation.Netherlands international Babel has joined Claudio Ranieri's side, who sit 19th and five points from safety, until the end of the season and could make his ...

Football »

Awami League President and Prime Minister Sheikh Hasina receiving a football ( as a souvenir) from Senior Vice-President of Bangladesh Football Federation (BFF) Abdus Salam Murshedy, MP, when a delegation of BFF led by its President Kazi Md Salahuddin met her at the Gono Bhaban on Tuesday night.


International »

Brexit deadline could be pushed back on UK request: French minister


AFP, Paris :The European Union could push back the looming March 29 Brexit deadline if London made such a request, France's Europe Minister Nathalie Loiseau said on Wednesday."At the time of speaking, it's just a theory because Mrs May has never asked for it and neither has anyone in her ...

International »

Australian towns among hottest spots on Earth as heatwave sizzles


Australian towns were among the hottest places on Earth this week as a severe heatwave hit the continent's southeast, with forecasters warning of more record-breaking temperatures before the weekend.The past four days were among the country's top 10 warmest on record, with temperatures nearing 50 degrees Celsius (122 degrees Fahrenheit) ...

Entertainment »

Katrina Kaif disagrees with the term ‘item song’


Katrina Kaif has come a long way in the 16 years she has been a Hindi film actor - from being known mainly for her dancing ability, to her acting talent being proved by films such as New York, Rajneeti and Zero. On how this journey has been so far, ...

Editorial »

Don't waste public money in the name of development projects


A Bridge built 22 years ago over a canal at Chilarkandi village in Moulvibazar's Kulaura upazila remains unused as it has no approach roads. The incident may be cited as a bright example of lack of coordination among the relevant departments and total waste of public money. The 12-metre long ...

Sports »

Ukraine's Dayana Yastremska (left) is congratulated by Australia's Samantha Stosur after winning their first round match at the Australian Open tennis championships in Melbourne, Australia on Tuesday.


Sports »

Serena Williams returns to Australian Open with emphatic win


AP, Melbourne :Serena Williams jumped straight back in where she left off at the Australian Open, returning for the first time since winning the title in 2017 when she was pregnant with her first child.Williams conceded only five points in the first set and was completely clinical in a 6-0, ...

International »

Iran satellite, that US was wary about, fails to reach orbit


AFP, Tehran  :Iran launched a satellite criticised by the United States on Tuesday but it failed to reach orbit, state television quoted the telecommunications minister as saying."The Payam satellite was successfully launched this morning with the Basir satellite carrier. But the satellite unfortunately failed to be placed in orbit in ...

International »

Model claiming Trump's 'Russia secret' goes to trial over "sex scandal"


AFP, Pattaya :A Belarusian model who sensationally claimed she had proof of Russian efforts to help Donald Trump win office appeared in court Tuesday for the expected start of her trial over running a "sex training course" in Thailand.Anastasia Vashukevich, known by her pen name Nastya Rybka, has been held ...

City »

Nepalese envoy makes farewell call on PM


Outgoing ambassador of Nepal to Bangladesh Prof. Dr. Chop Lal Bhusal and his spouse made a farewell call on Prime Minister Sheikh Hasina at her office here on Tuesday.  Dr Bhusal thanked the Prime Minister for her government's support in discharging his duties in Bangladesh. He particularly recalled the support ...

Entertainment »

Apurba, Safa Kabir in Nazia Hasan’s story


Sheikh Arif Bulbon :Safa Kabir and Apurba worked together as a pair in Valentine’s Day special play titled Tumi Bolley. Story of the play was written by Apurba’s wife Nazia Hasan Adity for the first time.Apurba and Safa played in roles of Aayan and Hridita respectively in this romantic story ...

Cricket »

Olivier sparks South Africa to sweep of Pakistan


Duanne Olivier sparked a Pakistan collapse as South Africa completed a series clean sweep with a 107-run win on the fourth day of the third and final Test at the Wanderers Stadium on Monday.Starting the day on 153 for three, Pakistan lost their remaining seven wickets for 120 runs to ...

Sports »

Emotional Wozniacki launches Australian Open defence


Caroline Wozniacki fought back tears after launching her Australian Open defence with a convincing 6-3, 6-4 win over Alison Van Uytvanck of Belgium on Monday.The third seed won her maiden Slam at Melbourne Park last year but has since been diagnosed with rheumatoid arthritis, a debilitating auto-immune disease that has ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news