Budgetspeak
Excerpts of interviews given to New Age in the run-up to this year's budget placement tomorrow

'A budget that is prepared and controlled centrally cannot ensure the welfare of the consumers. As 80 per cent of the people live in rural areas, more resources through the decentralised governing system should be diverted to the villages, especially for health, education and human capital formation. The budget is a 'oneman show' of the

finance minister. The colonial system of budget preparation that has been practised over the years hardly does any good to the common people. Due to lack of coordination between centrally-controlled policy framing bodies and project implementation agencies, rural people are not getting the benefit. Just look at how few doctors and teachers are present at the thana-level health complexes and schools?"

-DrZafrullah Chowdhury, chairman, Consumers Association of Bangladesh

'Allocation of funds for gram sarkar will see little result as these funds will be mostly distributed among the MPs, village touts and unscrupulous officials. Local government, especially union parishads, should have sufficient fund and also the authority to implement development programmes. More funds should be diverted for internal security as well as social safety net, so that people can be benefited in the long run and contribute to the economy. The objective of channelling more funds to rural areas is very. unlikely to be successful, unless the development plan is decentralised and local government strengthened. The idea of external security is partly imaginative, while investment to internal security has more productive return to the economy. Salary structure of the police needs to be upgraded."

- Professor MuzafferAhmad, economist

"Tax defaulters or evaders should be punished irrespective of their status and class. The finance minister is right when he says that businessmen are unwilling to pay tax. Honest taxpayers are facing regressive measures from taxmen, while tax defaulters go unpunished. Paying tax is an obligation for the affluent people, for which no incentive or state honour should be awarded. The business community favours appointment of a tax ombudsman and continuation of the PSI system. The government employees, who will be found responsible for non-implementation of the annual development programme, should be punished."

-Abdul Awal Mintoo, president, FBCCI

 

'An entrepreneur never invests in a business venture for a year or for a limited period, Once announced, the fiscal measures should be in force for at least five years. The next budget should outline a long-term fiscal policy so that investors can make business plans without any risk or uncertainty. Changes to the fiscal policy in almost every budget deter sustainable economic growth and hinder long-term investment planning. Any surprise announcement on tariff or other fiscal measures would be detrimental'to the country's macroeconomic health. The budgetary measures for imports and incentives should be long term, not for a year, and so should be the tariff structure."

- Kutub Uddin Ahmed, president, MCCI

 
 

"Prudential policy support at the government level is imperative to make the country's largest export earning sec,tor - readymade garments - to become competitive at this juncture of globalisation. The government should allow central bonded warehouse, fulfil rules of origin requirements for the European Union market and withdraw the ban on yarn import through land ports to withstand the postMFA shocks. Some policy supports could really strengthen our sector. We have the potential to grow even if hard times come."

-Annisul Huq, president, BGMEA

 

"Even a 5 per centplus economic growth will fail to improve people's life unless the national budget addresses issues affecting public life and the economy. The national fiscal and development budgets should focus on investment, employment, agriculture, agrobased industries and the price of essential commodities. The 1996-2001 Awami League government had introduced social safety net for the first time for elderly citizens and widows. I was told that the ADP has been increased. These all. are propaganda exercises. I dont believe he [Finance Minister M Saifur Rahman] wants to implement a large ADP to benefit the.poor. All his policies are designed for the rich."

- Shah AMS Kibria, former finance minister

  

"I want cash subsidy for farmers. A universal provident fund scheme should be developed with contribution from small savers to provide a safety net for aging population. The quality of public education has continued to fall. This trend will divide the society, which will not. be good for the economy. There must be a quality public education system in the country, otherwise the private system will only provide quality for the rich and there will be no quality of education for the poor. Priorities in terms of infrastructures, road and rail communications, power, gas, and telecommunications are a must for an economy to grow. The private sector needs to be involved in these areas in a bigger way. If we expect 11 per cent industrial growth, we need to improve the backup support. Project implementation should be given adequate attention."

- Dr Enamul Haque, professor of economics, NSU

  

"Many hole-in-thewall business organisations go to the National Board of Revenue and the finance ministry to propose budget measures, but wholesalers ' of Maulavibazar are not invited. But whenever the market becomes unstable, we are blamed for that."

- Golam Mowla, general secretary, Maulavibazar Merchants Association

  

"Making abnormal profit is not possible in the competitive market. Retailers have little or no scope to play foul in. the market. Big players in the supplychain are responsible for price-hikes.

-Amir Hossain IQian, president, Bangladesh Shop Owners' Association