As is now so boringly usual, the Annual Development Programme (ADP) has had 3.29 per cent sliced off it with roughly three and a half months left for the current fiscal year (FY). Not surprising, but certainly a cause for concern is that the bulk of this has been necessitated because foreign funds are becoming difficult to come by. Given the right-wing nationalist resurgence in most developed countries, even liberal regimes are being careful in using tax-payers money in aid as they see a growing disenchantment among their voters. The United States is leading the way. Withdrawal from the UNESCO and the International Organisation for Migration (IOM) is just the façade of an intently put together scaling down of foreign aid that was previously more liberal. A source working closely with the non-governmental organisation (NGO) sector has confirmed that the country's low-middle income status has resulted in aid being diverted to other countries. Self-sufficiency comes at a price.
While much was made of projected aid flows in this and coming fiscal years, particularly in the infrastructure sector by major development partners, the government is having to prioritise spend through matching, at least partly, such projects. And so transport gets the highest priority with power and rural development and institutions next. Health and agriculture are in the basket of priorities but lower in the pecking order. The post-scissor stricture is about quality of spend, reducing wastage and communicating project pluses to communities. Essentially, the government's development report card makes for good reading. With nearly ten-year continuity that is expected but with most projects over-shooting budgets there is cause for worry. The Finance Minister often points out that ours is the lowest tax-gross domestic product (GDP) ratio in the region. What he never discusses is that like-to-like development spend is among the highest. So much for cutting one's coat according to the cloth!
The failure to raise tax-payer numbers, whimpering at the one-million plus levels, has given rise to lop-sided disparity, even in the black economy. If it sounds ridiculous it is. The key point is that for a taxation-dependent country, nothing can happen if only 0.8 per cent of the population are registered tax -payers. That's what two million is against a 50 per cent adult populace of the country's 170 million. It's also fair to say that a major proportion of this two million are repeatedly taxed in other forms, mostly indirect taxation. And that's before the 'speed money' that is so casually and almost meticulously realised for any service conceivable.
It's not as if the same group isn't big-hearted. Consumers are willing to spend as evidenced by the Tk 700 million (70 crore) refreshingly spent on books at the Ekushe Book Fair alone. It sends a message that expenses within reason is acceptable. The huge queues waiting patiently for the bus and the shrug-of-the-shoulder nonchalance with which extra money is forked out for bus, train and launch tickets during festival holiday travel suggest the citizenry is generous. This is carefully, if not systematically budgeted. The government essentially deals with tax-payer funds and foreign aid designed for the citizens. That it isn't good at book-keeping is a combined end-result of apathy, inability, mindless politicking and graft.
As the graduation towards middle-income country status progresses, the challenge isn't just about scaling a huge peak; it's also about improving quality and process systems.
mahmudrahman@gmail.com