Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Wednesday, August 15, 2018 01:19:33 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 »

Bangabandhu a great leader of the people and for the people


THE nation mourns the 43rd Shahadat Anniversary of Bangabandhu Sheikh Mujibur Rahman today with prayers and solemnity all over the country. He was assassinated with almost all of his family members in the wee hours of that fateful night at his home in the city. It was a night of ...

Editorial »

Our migrants are being defrauded and harassed in Malaysia but govt remains mum


SOME 270 Bangladeshi workers have allegedly been defrauded of over Tk 3.6 crore by an agent over securing valid work permits under the Malaysian rehiring programme. The Bangladeshi nationals had handed over their passports, other relevant documents and paid between Tk 144,000 and Tk 160,000 each to the agent for ...

Sports »

U.S. swimmer Katie Ledecky teaches Japanese elementary and junior high school students at an event in Tokyo on Tuesday. The 21-year-old American, fresh off a five-medal performance at the Pan Pacific Championships in Tokyo, answered questions about her career and training routine before jumping into the pool with more than 100 star-struck Japanese elementary and junior high school students to give them tips.


.

Football »

Salah reported over allegedly using mobile while driving


AFP, London :Egyptian star Mohamed Salah could be in trouble with police after his club Liverpool passed a video apparently showing him using his mobile phone while driving.A spokesman for last season's Champions League finalists said they passed the video, which had circulated on social media, on to police after ...

Entertainment »

Tamannaah excited about giving retro twist to `KGF`


Tamannaah Bhatia says she had fun shooting for a 'retro number' in the period drama "KGF".Tamannaah shot for the recreated version of the song "Jokae naanu balliya minchu", a song which was picturised on late Vijayalalitha in director Rajkumar's Kannada film "Paropakari". "This is the first time I will be ...

International »

Trump administration pressures judges to speed deportations


AFP, Los Angeles :US immigration judges say they are under increasing pressure from President Donald Trump's administration to speed up immigrant deportations - or risk removal if they delay.This pressure is highlighted in the case of a judge in Philadelphia, Steven Morley, who was informed that a case he was ...

Editorial »

Quota reform: Free the students and fulfill their rational demands


CABINET Secretary after weekly Cabinet meeting on Monday told journalists that the committee formed by government to review the existing quota system proposed abolition of almost all the quotas in public services giving priority to talent. However, the court directives will be sought before taking any decision over freedom fighter ...

Cricket »

Ashraful eyes Bangladesh comeback as ban ends


Former Bangladesh captain Mohammad Ashraful said Monday that has set his sights on a comeback with the national side after his five-year ban for match-fixing ended."I am feeling really nice as I was waiting for this day for the last five years. (I told myself) when August 13, 2018 came ...

City »

State Executive Member and Advisor to the BJP President in West Bengal, India Dr Anindya Gopal Mitra called on Prime Minister Sheikh Hasina at her office yesterday afternoon.


Entertainment »

What Sara Ali Khan`s fans demand on her birthday


Even before the debut of her release film Sara Ali Khan is already a popular name amongst the masses. On the occasion of Sara’s Birthday, fans across the nation took Twitter by storm as #HBDSaraAliKhan and #WeWantSaraOnSocialMedia saw a strong India trend. Soon, social media went into a tizzy as ...

Entertainment »

Hichki story has universal resonance: Rani Mukherji


Actress Rani Mukherji, who has bagged the Best Actress Award for Hichki at the Indian Film Festival Melbourne (IFFM), says the film is a story that has universal resonance, and its spirit of positivity won over Indians and locals in Australia. “I feel very proud and thankful that Hichki has ...

International »

Two Koreas agree to hold September summit in Pyongyang


AFP, Seoul :North and South Korea agreed Monday to hold a summit in Pyongyang in September, the South's Yonhap news agency reported following high-level talks in the Demilitarized Zone that divides the peninsula.The two sides "agreed at the meeting to hold a South-North summit in Pyongyang in September as planned", ...

Editorial »

Make the BRTC capable, or shut down its operation


BANGLADESH Road Transport Corporation (BRTC) is now on the verge of collapse due to administrative and financial mismanagement. Newspaper reports said BRTC as per its own estimate incurred a loss of Tk 413 crore in 2016-17 fiscal. When bus transport has become very lucrative business in the private sector with ...

Football »

Choton expects best from her girls against Nepal


Bangladesh U-15 national women's team head coach Golam Robanni Choton said her girls are upbeat to give their hundred percent to win against Nepal in the SAFF U-15 Women's Championship.Bangladesh will face Nepal in their second group B match scheduled to be held today at Changlimithan Football Stadium in Bhutan."We ...

Entertainment »

I saw a chained elephant on a school trip to the zoo and became upset: Dia Mirza


Like any child, actor Dia Mirza, too, was entranced when she first saw an elephant. "The first time I saw an elephant was on the streets of Hyderabad. I was very young and was just so enamored by that sight. It was so unusual to see an elephant in an ...

 
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