Uncertinity Regarding The Execution Of Budget
Khondokar Ibrahim Khaled, Economist, Former deputy governor of Bangladesh bank
Interviewer: Ashique Rahman
Written by: Fabia Shahzadi
If this government can somehow manage to implement this vast budget, then it will bring a positive influence on Bangladesh’s economy. However, some questions have emerged regarding the proposed budget. This is because last year the revenue generated was much lower than what was estimated. Whether or not this year it will be possible to earn revenue at an increasing rate is where the prime question lies- Said the well-known economist and the former deputy governor of Bangladesh Bank, Khondokar Ibrahim Khaled in an interview at the Daily Amader Orthoneeti.
He said, even if we have experience a boost through revenue, our ability to spend is constricted. We have seen that in spite of having capital, many projects were left untouched. In order to allocate the yield into good use, we need to assure that increased, proper division of money has been done.
He further says, the proposed budget does not have much variation from the one made last year. Among the previous year’s budgets, the government has made a successful implementation of the allocated budgetary fund for the social security sector. Casting more money into this purpose this year is a positive approach because there is an income disparity in this country. Those who fall under the security belt need proper support from the government so it is a notable allotment. Other sectors such as the agriculture sector don’t have much change other than a slight increase of allocation in the education sector; which should have been more but viewing out overall ability, it seems quite reasonable. The main problem is the confusion that lies between the implementation and execution of the budget.
When asked to elaborate on the prevailing confusion, Dr. Ibrahim Khaled replies that our past experiences with the improper earning and spending of budget has led us to dwell in this perplexity.
To the finance minister’s expectation of meeting the budget deficit he said, the deficit can be met from the country’s source of financing itself. It can be met through bank loan or saving certificates. But the problem is, in order to meet the deficit, the expense that needs to be borne will incur interest, therefore, excess expenditure will rise.
On another question, Ibrahim Khaled stated that he is unaware how much of the budget resembles to the nation’s aspirations since he is not an ideal representative of the nation and did not even do much of a research studying this context. One thing which is certain to work against the nation’s objectives is that the prices of commodities will rise as higher VAT will be imposed.
Dr. Ibrahim Khaled adds, future holds the answer as to whether a GDP of 7.2 can be achieved. There is certain lacking in the implementation of the budget but this is what makes it a challenge. Other than this, he believes there to be no other complications.