'Budget’s big challenge is to fix source of money, areas for expenditure'
A routine budget for the next fiscal year won’t be able to meet the country’s needs as not only Bangladesh but the entire world is passing through a crisis due to coronavirus, World Bank’s Dhaka office former lead economist Zahid Hussain has said.
In the development budget, the health sector is still in the lower tiers. Given the current situation, this is shocking. Under the coronavirus circumstances, more funds should have been allocated to ensure health services
In a special interview with Prothom Alo, the economist said, “The big challenge of the next budget is to determine the source of money and areas for expenditure.”
In the next budget priority has to be given to the health sector, he said adding that education, social safety, food security and employment should also get priority.
As the targetted revenue will not be collected, Zahid Hussain noted, efforts have to be made for additional foreign assistance.
Asked about the allocation for the health sector, he said the Annual Development Programme (ADP) for the next fiscal year has already been finalised. In the development budget, the health sector is still in the lower tiers. Given the current situation, this is shocking. Under the coronavirus circumstances, more funds should have been allocated to ensure health services, he added.
About those who have lost their jobs due to coronavirus, Zahid Hussain said there are 40 million poor people in the country and the ultra poor between 15 million to 20 million. The social safety of these people has to be ensured.
Huge allocations for Rooppur Nuclear Power Plant are questionable as the country currently has surplus electricity generation
He said there must have special programmes in the next budget for employment of those people. They will not care about virus if they face hunger. Social safety net programmes and the number of beneficiaries have to be expanded in the next budget.
The crisis will multiply if adequate funds are not allocated and the real beneficiaries are not identified expeditiously, the economist cautioned.
When asked about the fear of a food crisis due to coronavirus, Zahid Hussain said, “We have to pay attention to ensure food security internally. Seeds, fertiliser and agro-machineries have to be arranged for farmers. Subsidies have to be given properly. Adequate money has to be allocated for all this.”
About source of money for the next budget, the economist said the government has to pay attention to donor agencies-World Bank, Asian Development Bank, IMF for funds. These agencies have constituted special funds for tackling the coronavirus situation. The government has to prepare programmes and projects to tackle coronavirus. Before approval of funds, these lending agencies will want to know what steps Bangladesh is going to take to contain coronavirus.
There will not be any problem if the budget deficit stands at 7-8 per cent at the moment, he observed.
About the impact of Bangladesh’s international trade due to coronavirus, Zahid Hussain said the world’s trade situation will not return to how it was any time soon. The dependence on readymade garments for export has to be reduced. Export has to be diversified.
He said there is a fear that the buyers will not be interested to deal with Bangladesh if the coronavirus situation is not tackled.
Mega projects including Padma bridge, metro rail have to be finished expeditiously, he suggested.
Zahid Hussain said, huge allocations for Rooppur Nuclear Power Plant are questionable as the country currently has surplus electricity generation
*This interview, published in Prothom Alo print edition, has been rewritten in report form in English by Rabiul Islam.