Akbar for budget talks with parties
Friday, 21 March 2008
FE Report
Chairman of Regulatory Reforms Commission (RRC) Akbar Ali Khan Thursday urged the interim government to prepare the next national budget after consultation with political parties.
"I have heard that the present interim government will not consult with the political parties to frame the budget," Akbar Ali said
"If it is happened, implementation of the next budget will be at a stake," he said, adding the government reluctance to hold budget talks with parties could jeopardize the chances of its full implementation.
His comments came less than a week after finance adviser Mirza Azizul Islam ruled out any talks with the parties for framing the budget for the 2008-9 fiscal year.
Akbar Ali said since the present interim government was not elected, it must prepare the budget after consultation with people of all walks of life including the major political parties.
"Consultation with the political parties is needed to maintain continuity of the budget," he said.
He was speaking at a roundtable on Poverty Reduction Strategy Paper (PRSP) and next budget: the right of the coastal people.
Local development agencies -- Community Development Centre and Unnayan Shamunnay-- and Bengali daily newspaper -- the Prothom Alo-jointly organised the discussion.
The former caretaker government finance adviser also came down heavily on the PRSP, saying it has proved to be an unrealistic documents, as most of its macro-economic targets have not been achieved.
The BNP-led government prepared the PRSP or the National Strategy for Accelerated Poverty Reduction in 2005 for a three-year period, after replacing the age-old practice of five-year development planning.
"The PRSP projected an annual 7.0 per cent growth, inflation within five per cent, gross domestic investment 26 per cent of the GDP ……... in FY2008. These have now proved to be impossible to achieve," he said.
"Only the foreign exchange reserve is in a better position. Most of the information in the PRSP have been proved to be false," he said.
"Why will we follow this document?"
Akbar Ali, also an ex-alternative executive director of the World Bank, blasted the previous government for preparing the PRSP 'by only taking a general view of poverty."
"There is a big hole there. There are different types and nature the poverty. Their intensity differs region to region.
But none of these was not reflected in the PRSP. This policy paper will not help stamp out poverty in the country," he said.
"When I was in the World Bank I have gone through 30 to 40 PRSPs of different countries. All were almost similar. If these were prepared by their respective governments, how could all of them be almost similar," he said, noting that Bangladesh's PRSP is a donor-prescribed policy document.
He suggested that the next budget should allocate more funds for employment generation for the poor, infrastructure development and for sustainable disaster protection programme in the cyclone-hit coastal areas.
Economist and chairman of Unnayan Samunnay Atiar Rahman said the government in its current budget allocated only Tk1.65 billion for the coastal people, which is only 0.62 per cent of the annual development programme.
He urged the government to raise the allocation, set up industries and ensure demand-driven facilities to eradicate poverty from the coastal districts.
Chairman of Regulatory Reforms Commission (RRC) Akbar Ali Khan Thursday urged the interim government to prepare the next national budget after consultation with political parties.
"I have heard that the present interim government will not consult with the political parties to frame the budget," Akbar Ali said
"If it is happened, implementation of the next budget will be at a stake," he said, adding the government reluctance to hold budget talks with parties could jeopardize the chances of its full implementation.
His comments came less than a week after finance adviser Mirza Azizul Islam ruled out any talks with the parties for framing the budget for the 2008-9 fiscal year.
Akbar Ali said since the present interim government was not elected, it must prepare the budget after consultation with people of all walks of life including the major political parties.
"Consultation with the political parties is needed to maintain continuity of the budget," he said.
He was speaking at a roundtable on Poverty Reduction Strategy Paper (PRSP) and next budget: the right of the coastal people.
Local development agencies -- Community Development Centre and Unnayan Shamunnay-- and Bengali daily newspaper -- the Prothom Alo-jointly organised the discussion.
The former caretaker government finance adviser also came down heavily on the PRSP, saying it has proved to be an unrealistic documents, as most of its macro-economic targets have not been achieved.
The BNP-led government prepared the PRSP or the National Strategy for Accelerated Poverty Reduction in 2005 for a three-year period, after replacing the age-old practice of five-year development planning.
"The PRSP projected an annual 7.0 per cent growth, inflation within five per cent, gross domestic investment 26 per cent of the GDP ……... in FY2008. These have now proved to be impossible to achieve," he said.
"Only the foreign exchange reserve is in a better position. Most of the information in the PRSP have been proved to be false," he said.
"Why will we follow this document?"
Akbar Ali, also an ex-alternative executive director of the World Bank, blasted the previous government for preparing the PRSP 'by only taking a general view of poverty."
"There is a big hole there. There are different types and nature the poverty. Their intensity differs region to region.
But none of these was not reflected in the PRSP. This policy paper will not help stamp out poverty in the country," he said.
"When I was in the World Bank I have gone through 30 to 40 PRSPs of different countries. All were almost similar. If these were prepared by their respective governments, how could all of them be almost similar," he said, noting that Bangladesh's PRSP is a donor-prescribed policy document.
He suggested that the next budget should allocate more funds for employment generation for the poor, infrastructure development and for sustainable disaster protection programme in the cyclone-hit coastal areas.
Economist and chairman of Unnayan Samunnay Atiar Rahman said the government in its current budget allocated only Tk1.65 billion for the coastal people, which is only 0.62 per cent of the annual development programme.
He urged the government to raise the allocation, set up industries and ensure demand-driven facilities to eradicate poverty from the coastal districts.