ICT sector remains neglected in budget
Saturday, 12 June 2010
FE Report
Thursday's national budget has largely drawn mixed reactions from the leaders of the Information Technology sector, which they cited for coming short of "a number of vital fiscal measures" to take the highly potential sector to the next level.
While hailing the government move for increasing the allocation for ICT in its non-development budget and the Equity Entrepreneurship Fund, insiders also noted the absence of the proposed money allocation for ICT in the annual development budget which the national ICT policy provisioned.
The finance minister in his speech proposed an allocation of Tk 1.12 billion for the ICT sector from its non-development budget while another Tk. 2 billion was allocated for ICT through the existing Equity and Entrepreneurship Fund.
However, according to the IT leaders, the budget also came short of a number of highly anticipated financial incentives including the long expected money allocation for the proposed Tk seven billion ICT development fund.
"From an IT perspective, this year's budget is very much the continuation of last year's one", said President of Bangladesh Computer Samity Mostafa Jabbar.
"We would rather like to see a few more incentives for the IT industry in this year's IT budget allocation given the present government's increased thrust on automation and digitization", he added.
Establishment of a 'Digital Bangladesh' through large scale automation and greater connectivity was one of the major pledges of the present government's election manifesto and the finance minister said that "we have been greatly successful in implementing our promises".
Industry insiders however cited the lack of any new money allocation or financial incentives in this year's proposed budget to materialize the government's vision of rapid digitization and automation.
"The ICT policy originally stipulates the allocation of five per cent of annual development budget and two per cent of revenue budget for the IT sector, but the provision is yet to be fulfilled, even in this year's budget", said Habibullah N Karim, the former President of Bangladesh Association of Software and Information Services (BASIS).
Thursday's national budget has largely drawn mixed reactions from the leaders of the Information Technology sector, which they cited for coming short of "a number of vital fiscal measures" to take the highly potential sector to the next level.
While hailing the government move for increasing the allocation for ICT in its non-development budget and the Equity Entrepreneurship Fund, insiders also noted the absence of the proposed money allocation for ICT in the annual development budget which the national ICT policy provisioned.
The finance minister in his speech proposed an allocation of Tk 1.12 billion for the ICT sector from its non-development budget while another Tk. 2 billion was allocated for ICT through the existing Equity and Entrepreneurship Fund.
However, according to the IT leaders, the budget also came short of a number of highly anticipated financial incentives including the long expected money allocation for the proposed Tk seven billion ICT development fund.
"From an IT perspective, this year's budget is very much the continuation of last year's one", said President of Bangladesh Computer Samity Mostafa Jabbar.
"We would rather like to see a few more incentives for the IT industry in this year's IT budget allocation given the present government's increased thrust on automation and digitization", he added.
Establishment of a 'Digital Bangladesh' through large scale automation and greater connectivity was one of the major pledges of the present government's election manifesto and the finance minister said that "we have been greatly successful in implementing our promises".
Industry insiders however cited the lack of any new money allocation or financial incentives in this year's proposed budget to materialize the government's vision of rapid digitization and automation.
"The ICT policy originally stipulates the allocation of five per cent of annual development budget and two per cent of revenue budget for the IT sector, but the provision is yet to be fulfilled, even in this year's budget", said Habibullah N Karim, the former President of Bangladesh Association of Software and Information Services (BASIS).