Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Tuesday, March 5, 2019 10:42:01 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Public money should not be spent on wasteful expenditures

By
06th-Mar-2019       
Comments
Share your thought
Post a comment »
Read all () »

PARLIAMENT passed the Tk 464,573 crore national budget for FY 2018-19. Various studies have indicated that if the government expenditure rises the GDP increases and vice versa. So, to enhance the GDP of Bangladesh it is recommended to increase the level of expenditure. But could the GDP increase by a higher rate? And what effect would government expenditure have on inflation?
We have to understand that government monies come from the public. The budget for the current fiscal year showed that government's revenue earnings would largely depend on NBR-generated (National Board of Revenue) tax (Tk 2,96,201 crore) followed by other sources like non-tax revenues (Tk 33,352 crore) and non-NBR tax (Tk 9,727 crore). Still, there will be an income-expenditure mismatch of Tk 1,25,293 crore.
So when the government takes money from the public and spends it on wasteful expenditure like increasing the salaries of government servants, it means that monies have been earned productively to spend on unproductive sources. This forces firms to jack up their prices to enable them to stay in profit and in turn increases cost-push inflation. Inflation reduces the purchasing power of the average citizens. All the while firms are forced to offer reduced salaries to their employees which further hits their purchasing power.
Taking money from the private sector to pay government employees higher salaries thus has a double whammy effect on the private sector employees who generate most of the country's demand. The overall government expenditure is barely 18 percent of GDP--but it takes away incomes from the private sector which could have generated more jobs and created a greater push for GDP growth than the amount which the government spends on the economy.
So we can say that government expenditure on increasing the salaries of civil servants would have a negative effect on overall GDP growth. The government needs to realise this and only spend money in real infrastructural developments which have not been inflated by corruption or other non-essential costs. We are already spending record amounts of money for infrastructural developments--there is no need to increase the burden on the national exchequer.

Tariff
Add Rate

News Archive

Inside The New Nation

Football »

2 red cards as Juve goes 16 points clear by beating Napoli


AP, New York :Two red cards and a late penalty miss contributed to a dramatic match at the Stadio San Paolo on Sunday as Juventus beat second-place Napoli 2-1 to continue its seemingly unstoppable march toward a record-extending eighth successive Serie A title."We have a 16-point advantage and a superior ...

Entertainment »

Raha Tanha: Heroine of web series


Entertainment Report :Raha Tanha started her career in media through the hands of her elder brother dance artiste and choreographer Badshah. She first acted in evergreen singer Kumar Bishwajit’s musical film Sarangshey Tumi. She came into discussion with her first appearance on the screen. Later, she acted in music video, ...

Football »

Neymar says 2 injuries, not 1, affected World Cup displays


AP, Rio De Janeiro :Brazil and Paris Saint-Germain star Neymar was battling back from two injuries, not one, at last year's World Cup.In a 2-hour interview with TV Globo on Sunday, Neymar said a problem in his right ankle was affecting his recovery in Russia, as well as the metatarsal ...

International »

Israeli soldiers kill two Palestinians after alleged car-ramming


Al Jazeera News :Israeli soldiers shot three Palestinians after a car ramming attack in the occupied West Bank, the Israeli army said.Media outlets in Israel said two of the alleged attackers on Monday were killed, while the Israeli military said another was slightly wounded.In a statement, the Israeli army said ...

International »

South Korea's Moon urges new US-North denuclearisation talks


AFP :South Korea President Moon Jae-in on Monday urged the US and North Korea to quickly resume denuclearisation talks after their Hanoi summit last week ended without a deal.Moon, who has adopted a dovish approach to Pyongyang and brokered the US-North Korea talks process, urged his officials to find out ...

Editorial »

Member nations must rethink to reactivate the SAARC


THE South Asian Association for Regional Cooperation, widely known as SAARC, is now almost inactive. All the eight-member nations have apparently failed to gear up the activities of this regional forum and even couldn't hold a summit in the last five years since 2014.  The SAARC Council of Ministers, comprising ...

City »

Renowned Indian Cardiologist Dr. Devi Shetty paid a courtesy call on Prime Minister Sheikh Hasina at the latter's office on Monday.


City »

President Md Abdul Hamid visited ailing Obaidul Quader, General Secretary of Bangladesh Awami League and Minister for Roads and Bridges at Bangabandhu Sheikh Mujib Medical University yesterday .


Business & Economy »

Mejbahuddin new BDBL Chairman


Business Desk :Former senior secretary Mohammad Mejbahuddin has joined Bangladesh Development Bank Limited (BDBL) as its chairman.He served as a secretary and senior secretary at different ministries including the Energy and Mineral Resources Division, Implementation Monitoring and Evaluation Division and Economic Relations Division, the bank said in a statement yesterday.Mejbahuddin ...

Editorial »

Relocation of chemical warehouses a tough task indeed


A taskforce comprising officials of 14 government agencies was forced to suspend their operation in the face of angry protests from local traders in Bakshibazar, on the second day of the month-long crackdown. The drive resumed after around two hours following direct intervention of Dhaka South City Corporation Mayor Sayeed ...

Football »

Galaxy honour David Beckham on MLS opening day


Major League Soccer kicked off a new season on Saturday with 10 games and a tribute to football great David Beckham whose arrival in 2007 helped usher in a new era for the then upstart league.A statue of the former England captain was unveiled by the LA Galaxy outside their ...

Cricket »

Mahmudullah revels in classy century amid crushing defeat


Mahmudullah Riyad's revolution as a Test batsman has caught the attention of many but it was a reward for his continuous hard-work and passion to thrive in the longer version format, said former cricket captain Gazi Ashraf Hossain.Mahmudullah who led the side in the first Test against New Zealand in ...

International »

Qaeda-linked Syria group kills 21 regime forces: Monitor


AFP, Beirut :A Syrian jihadist group linked to Al-Qaeda killed 21 regime and allied forces Sunday near Idlib province, in one of the deadliest breaches of a six-month-old truce deal, a monitor said."At dawn, 21 fighters from the regime forces or allied militia were killed in an attack by Ansar ...

International »

Iran warns US allies of 'humiliated citizens' uprising


AFP, Tehran  :US allies in the Middle East risk an uprising by their "humiliated citizens" if they continue to rely on Washington, a top Iranian security official warned Sunday in comments carried by state media."(US President) Trump and even his underlings ridicule and humiliate Saudi Arabia and the (United Arab) ...

Entertainment »

Raashi Khanna starts shooting for Venky Mama


Actor Raashi Khanna shared a time-lapse video where we can see the actress getting her makeup done for her upcoming film, which is none other than Venky Mama. The actress joined the cast of the multi-starrer film which has Daggubati Venkatesh and Naga Chaitanya in lead roles. Raashi shared the ...

 
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