& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

Reaction to new pay scales

Uncertainty over flow of WB, IMF funds

Star Economic Report
Uncertainty has cropped up over the disbursement of funds under the on going economic reforms programme supported both by International Monetary Fund (IMF) -and the World Bank (WB).
The two lending multilateral funding agencies have earlier sought clarifications from the government on the budgetary and overall financial impact of the newly-announced national pay scales
The government has reportedly replied to both IMF
and WB, explaining the situation. The sources said that the government had told them that the additional resources to be Involved for implementation of the pay scales would be met from the existing budgetary resources. The overall budgetary deficit will not exceed the limits set under the reforms programme known as Enhanced Structural Adjustment Facility (ESAF). The 10 per cent cut in contingency expenditures under the revenue budget for IWI-92 and some other austerity moves will provide the cushion for the government to absorb the effect* of the pay hike, for Its employees, the sources added.
The pay-hikes will involve an additional expenditure of about Taka 400 crore out of the revenue budget atone in 1991-92 Another Taka 500 crore will be needed in the next fiscal year to Implement the allowances part of the overall new pay and allowances structure for about seven lakh government employee/.
Available Indications suggest that the key multilateral fund-giving agencies are not convinced about the rationale of the new pay structure at a time when the government needs to conserve more resources for supporting development programmes in the public sector The development budget of the government will be forced to bear the brunt of the payhikes. the donors felt.
The concrete reforms programme under ESAF with ■ specified set of targets for different areas of overall economic management for 1991-92 were drawn up by the government in May last In cooperation with the staff of the IMF and the WB
Under the three-year ESAF. such specific targets are to be set up annually with semi-annual disbursement* of funds (at about 47 million US dollars under each instalment or tranche) conditioned on fulfillment of the targets.
The ESAF was approved for Bangladesh In June last. So far three Instalments have been disbursed. The next disburse merit I* due in December
Informed sources told The Dally Star that the announcement of the new national payscales involving a large amount of current expenditures were not envisaged under the reform* programme for 1991-92
The policy-based lending programme* of the World Banking sectors like finance and banking and energy are also related to the overall economic management by the government In more or less the same line a* that of ESAF This Is the reason for the WB s concern’ over the implementation of the pay scales with its adverse Impact on overall resource management, the sources said
Both the IMF and the WB, according to sources, have also ■ought clarification from the government about the impact of the pay-scales on the financial position of about 50 autonomous bodies and nationalised commercial banks and financial institutions which meet their salaries, wages and allowances bills from their respective budgets. How will such bodies and institutions meet the Increased overhead costs and what will be Its ef feet on their borrowings from the banks, contributions of profits to the public exchequer, operational deficits or pricing policies? — these are the questions which both the IMF and the WB have raised, according to sources.
Some circles have likened the present situation to that of 1980-81 when the IMF Withdrew its support under the then extended credit facility to Bangladesh on grounds of credit bust beyond the agreed limits.