Discussion on budget performance

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Budget is nothing but an estimate of income and expenditure of a certain period. In Bangladesh, we pin very high hopes on a budget before it is tabled in parliament. Discussion on the next budget 2010-2011, to be tabled in June 1010 has already been started to feel the pulse of the general public.
Very often we don't evaluate the performance of the past budget in different fields like agriculture, industry and other areas of economic activities like import, export and balance of payment and international trade. Some of the ministries sometimes release figures supporting achievement and these too are scanty and sketchy. We talk about the growth of GDP and keep the rate at around 6 to 6.50%. But IMF and World Bank Asian development Bank, which are our major donors, do not agree with us.
As a poor nation we have many basic problems like unemployment. poverty, and shortages of power, gas and infrastructure. A major portion of budgetary money is allocated for this purpose.
The budget for 2010 failed to bring down the prices of essentials and manufactured goods. Agricultural production was not satisfactory although the government provided subsidies to the farmers. The consumers have to pay for the subsidies that the government provides to various sectors, including agriculture.
The budgetary allocation made in this field should be properly evaluated and whether it was used or misused should be made known to the people. If the fund allocated for the purpose of development is not spent in time infrastructural development goes very slow and the unfinished job entails further expenditure. We talk about schemes and plans, but they are not properly executed the officials and even the policymakers lack the expertise to implement them. The ministry and department concerned very often rely on consulting firms are run by ex-bureaucrats who depend on previous reports and make a few changes here and there! The consultants do not necessarily go deep into the matter. Thus development work is seriously hampered.
Similarly, when the ministries or departments are asked to submit the report before preparation of a final budget, the ministries simply enhance the amount of requirement hypothetically -- not based on reality.
The budget 2010-2011 is going to be placed in mid-June 2010. Although the budget is prepared for a short duration it is linked with ADP. The general public, even the beggars pay taxes here in Bangladesh, because small depositors pay advance income tax on their earnings by way of interest and dividends. The size of amount does not matter. Again if a beggar buys something he has to pay VAT.
Our expectation is that whatever may be the size of the budget we should give priority to the reduction of poverty. Agricultural development of all kinds including fishery, poultry and animal husbandry are also important. The government must take proper measures to keep the population size at a tolerable level. Energy problem should he given top priority. Coal based power plants can be built as we have lots of coal deposit.
Mere preparation of budget will not solve our problems. Proper and faster utilisation of budget allocations is required and there should be review on a quarterly basis. The progress of implementation should be monitored and ministries which do not comply with the plan should be reprimanded and asked to improve.
Mahbubul Haque Chowdhury
Former General Manager, NCB