Discrimination-reducing budget expected from interim govt

In the face of a challenging global economy, creating a budget in a densely populated country like ours is a difficult task. It cannot be confined within the conventional rules of economics. Among the sectors essential for the social, economic, moral, and intellectual development of a nation, education is one of the most important. This sector is connected to the intellect, thought, strength, and awakening of a sense of normal life for every citizen living in a state. Unfortunately, the state remains far from taking the necessary steps for the development of this sector. A major problem is the very low allocation in the national budget for the advancement of education. Yet, compared to neighbouring countries like India, Nepal, Bhutan, and Sri Lanka, Bangladesh allocates significantly less to the education sector.

In Bangladesh, there are certain sectors where allocations are high or allocations are increased in non-productive sectors, while allocations for education do not increase—in fact, they decrease. Generally, there is a high unemployment rate among university graduates, and a major reason for this is the wide gap between the kind of education they receive and the qualifications that are in demand in the job market. Since independence, the population has been steadily increasing, which is why the budget amount also increases each fiscal year. Therefore, we can say that the plan for allocating funds to various service sectors, including the overall development and social security of the population living within the state, is generally reflected as the budget. In a country like ours, a major cause of inflation is scarcity. From time to time, many items become scarce, which we have to import. To import these, we need foreign currency. In this area, we have some shortages. Although the caretaker government has managed to somewhat address this issue, it cannot be said to be entirely satisfactory. Therefore, the goal of the budget should be to control inflation through a coordinated approach to fiscal and monetary policy.

At the same time, attention must be paid to the underlying causes of inflation. To resolve the unavailability of certain products, they need to be imported. Care must be taken to ensure that such imports do not lead to a shortage of foreign currency. We need to promote exports. Another major strength of ours is the remittances sent by our labour force working abroad. We hope that this continues to increase steadily. For this, the smaller the gap between the market value of the dollar and the rate offered by the government or banks, the better. It is hoped that this will help control hundi transactions. The budget also has a developmental aspect. However, unlike past development budgets where allocations were made generously—especially to strengthen corruption—this time, that should not be done. Projects should be undertaken only after a proper analysis of their potential benefits and losses.

At the same time, the question may arise—what will happen to the partially completed projects? Though they are like a thorn in the throat, they need to be completed or properly finished. Otherwise, the money already spent will go entirely to waste. Emphasis must be placed on completing partially finished projects and being prudent rather than reckless when undertaking new ones. A large project does not necessarily mean it will benefit people. There are many development projects that, even with minimal expenditure, bring significant benefit to the people. Especially, projects that help the poor must be completed. At one time, we used to hear the term "pro-poor budget"—nowadays, we do not. The term "pro-poor budget" was actually introduced by the World Bank. I don't know whether the World Bank has moved away from that position. The poor in our country are now suffering greatly. Though we used to hear that we had conquered poverty, in reality, poverty has not decreased that much.

This has also been reflected in the poverty map of the Bangladesh Bureau of Statistics. In many districts, more than half a percent of people still live below the poverty line. Living below the poverty line means that some people are extremely poor and remain under the poverty threshold. This is a grave problem. It cannot be solved merely through aid, stipends, or welfare activities. Stipends may temporarily prevent disaster, but a long-term solution is needed. The long-term solution is job creation. And to increase employment, both domestic and foreign investment are necessary. Without active domestic investment, foreign investment will not come. We have created many obstacles to foreign investment. The "One Stop Service" remains only a slogan. It needs to be implemented in reality. There are opportunities to attract foreign investment; the state of the global economy supports this. But our internal policies and state policies stand in the way of attracting foreign investment. Along with that, corruption is another major issue. Many foreign investors come here, have discussions, but eventually leave without investing due to these issues.

If there is an investment-friendly environment in the country, businessmen and entrepreneurs will invest. Domestic investment indicates that there is a favourable investment climate in the country. That is why it is often said that unless domestic investment increases, foreign investment will not grow. Foreign investors first observe how active and enthusiastic local businesses are in trade and commerce. If they see that domestic investors or businessmen are not very active, they will naturally reach a negative conclusion. Therefore, domestic investment must be given priority. Priority also needs to be given to education and human resource development. If we can genuinely build human resources, the benefits can be reaped within the country.

At the same time, by utilising skilled human resources and exporting them abroad, we can earn significant wealth and foreign currency. But the problem is that a very small portion of the budget—less than 2 percent—is allocated to education and human resource development. This allocation needs to be changed. However, merely increasing the budget allocation will not bring about major changes in these sectors. The current problem in the education sector is that ignorance is being promoted in the name of education. People are being appointed in educational institutions based on political or other social considerations, many of whom are not qualified to teach. Therefore, unless we ensure good governance in this sector, neither increased funding nor more teacher recruitment will bring positive results. What we need first is reform. We must focus on how to ensure the recruitment of qualified teachers, provide quality education, improve schools and colleges in terms of educational materials, libraries, laboratories, etc., and produce teachers committed to professionalism. Although there are various institutions for teacher training at present, in reality, there are no good trainers.

This area also requires attention. In addition, it is important to focus on how to restore or rebuild what is currently in a devastated state. In our country, political uncertainty creates a kind of hesitation among businessmen or investors. They are unable to act boldly or take initiative. However, if the political situation is stable and there is no long-term uncertainty, they invest and accelerate their activities. It increases motivation among patriotic individuals to engage in work. Therefore, political stability is essential. There needs to be a kind of understanding between the government and political parties. The government must pay attention to how the legitimate demands of the parties can be met.

Already, a national debate has emerged surrounding reform and elections. The only way to be saved from this debate is to take steps toward necessary reforms and to carry out only those reforms that a non-elected government can feasibly implement. The rest should be left for an elected government. I believe this is the simplest path. Above all, discrimination has failed to make life meaningful in terms of the expected respect and recognition for individuals, and their participation in development. The dreams of the youth have been snatched away. They have been pushed toward dependence. This budget is expected to contain the tools to reverse that process. That must not just be words or promises—it must be quickly implementable.

There may be limitations on how much can be achieved in one year. However, at least a two- or three-year action plan and set of targets can be formulated, with the budget allocating funds for the implementation of the first phase. The rest can reasonably be expected to follow its logical course. The growing inequality is most glaring between rural and urban areas. Even calling it a rural-urban disparity does not fully capture the extent of the difference. Efforts to reduce this rural-urban inequality need to be visible. Along with that is the issue of agriculture, which is essentially the issue of the farmer.

In the budget, there are of course allocations for agriculture, but a large portion of that is generally directed toward physical infrastructure, subsidies, and tax exemptions on machinery. Therefore, incentives must be given for agricultural mechanization to increase productivity. However, the fate of agricultural laborers who are losing their jobs must also be considered.

Research has shown that the number of micro and small entrepreneurs has decreased. As a result, their share in total employment has also declined. On the other hand, the share of large entrepreneurs in employment has increased. Their dominance in the labor market has grown, fueling the process of rising inequality. If there is a genuine interest in reducing inequality, then this budget must be utilized to take practical steps.

Author: Researcher and columnist.