Proposed budget
FROM PAGE B1
The global median value for general government health expenditure as a percentage of GDP is 3.44 per cent while the government’s allocation for the health sector is only 0.76 per cent for next fiscal year.
According to him, public expenditure in FY 2022-23 was to some extent, intentionally kept very low compared to the annual target.
He said attaining the public expenditure target in FY 2023-24 may require approximately 40 per cent growth over the actual achieved public expenditure by the end of the year.
Bhattacharya also said the budget did not increase in line with the growth of the economy.
In addition, the performance of budget implementation in terms of revenue mobilisation and public expenditure, such as spending under the Annual Development Programme, has deteriorated over the years.
The global median value for public expenditure is 32.2 per cent of GDP while Bangladesh ranks 119th out of 123 countries in terms of its tax-GDP ratio, he added.
Samir Ranjan Nath, head of the BRAC Education Programme, said the government allocated only 1.5 to 1.6 per cent of the GDP for the education sector against its commitment of 6 per cent.
“It is not possible to ensure quality education with such a limited budget,” he added.
Fauzia Moslem, president of the Bangladesh Mahila Parishad, said women are always victims of inequality in both wealthy and low-income families.
So, even though the government allocations for women’s development is very limited, it is still a positive initiative.
The government usually allocates more than Tk 32,000 crore for the skills development of women but it remains unclear how the budget is utilised.
Fahmida Khatun, executive director of the CPD, said allocations for climate change help mitigate the impacts of natural disasters while also lowering carbon emissions.
According to her, climate change is a multi-sectoral problem that has direct implications for disadvantaged people.
She suggested the government invest in measures that address climate change as the private sector will not invest in this regard considering the lack of profitability.
Asif Ibrahim, chairman of the Chattogram Stock Exchange, said the private sector is worried about the energy crisis and continuous appreciation of US dollar and inflation, which were not addressed in the budget.
According to him, energy prices have increased around 60 per cent over the past year, increasing the burden of investment.
With this backdrop, it will be difficult to increase private investment to 27.4 per cent, said Ibrahim, also a former president of the Dhaka Chamber of Commerce and Industry.
“We create employment and contribute to government revenue, so we need quality infrastructure,” he added.
Ibrahim also urged for enhanced political stability to ensure higher investment from the private sector along with investment friendly policies.
However, he said there is not a single word in the proposed budget regarding the development of the capital market, where people make long-term investments.
Mustafizur Rahman, a distinguished fellow of the CPD, said the economy is passing through a tough time and so, the government should come forward with investment.
As an example, Rahman said if the government invests Tk 1, then the private sector invests Tk 3.
Regarding the slow implementation of development projects, Rahman said there are a total of 288 projects that are aged between six to 10 years.
These projects have seen cost overruns in line with time extensions for slow implementation.
If a project faces delays in implementation, the people cannot reap the benefit, he added.