Productivity is an 'economic measure of output per unit of input'. In other words, we can say "productivity is a measure relating to quantity or quality of output to the inputs required to produce it". Every moment we are investing our savings out of earnings for return or income. Return or income is measured as output. Normally, investment is justified if the output is as per or close to the expectations.
From the point of return on investment, both employer and employee are investors. An employer is supposed to get the return for his investment of capital (consisting of man, machine and materials) and an employee receives return against his investment of mental and physical effort. Everybody tries to maximise his/her return. But due to high competition, the situation often gives rise to some major conflicts. Success of every investment depends on return at equilibrium point which is related to the law and order situation of the country.
The importance of economic activities has been realised from the very beginning of civilisation. Now the latest added feather on its wing is globalisation. Economic activities all around the world have come under an umbrella known as Global Village for many reasons. So the world is now wide open and business is no more confined to local or the national territory.
Every year, the government prepares an Annual Development Programme (ADP) of its monetary investment for infrastructure development during the concerned year from the government exchequer. The target of development expenditure is to create new jobs. Infrastructure development of a country is normally done by the government. Now-a-days, it is also financed through public-private partnership (PPP) which is becoming increasingly popular and attractive despite its high risks. If the government mechanism does not function effectively, then it would be easier for a section of corrupt businessmen to pocket the lion's share of the project money under the PPP system. Under the PPP system, businessmen spend money from their own arrangements. In such cases, the government's responsibility is more important to ensure quality of work performed by the private sector and to justify the cost. The return from an investment with inefficiency and irregularity will hardly match its cost. The entire economy of the country will have to bear the consequences.
A recent report published in a daily newspaper says 761 high-ranking government officials are getting monthly salaries and allowances without doing any job for months together. On the contrary, the government itself is taking huge loans from banks and other sources to meet the required revenue expenditures. This writer believes this type of wastages like payment of salaries and allowances to 761 from the government exchequer must draw the attention of the Finance Minister.
Another daily reported that 'the road, within less than one year of its repair, has developed cracks and potholes and has returned to its earlier shape. It means, the road was reconstructed with poor materials by the contractor who allegedly pocketed the lion's share of the money allocated for it.' This is the common feature in Bangladesh today. We are spending our hard-earned money without getting any positive returns.
The government is implementing Millennium Development Goals (MDGs) since 2000 as a member of the United Nations (UN) as per its commitment to achieve the following MDGs by 2015:
1. To eradicate extreme poverty and hunger;
2. To achieve universal primary education;
3. To promote gender equality and empower women;
4. To reduce child mortality;
5. To improve maternal health;
6. To combat HIV/AIDS, malaria, and other diseases;
7. To ensure environmental sustainability and
8. To develop a global partnership for development.
The MDGs were set by the UN. The Goals were formulated following the Millennium Summit of the UN in 2000. It followed the adoption of the UN Millennium Declaration. All the then 189 UN member-countries (currently 193) and 23 international organisations made commitments to help achieve the Goals by 2015.
Each Goal has its specific targets. Two of the major objectives of MDGs are to minimise poverty level by increasing earning power and strengthening family planning and also to increase literacy rate. But the fact remains that in 2014, despite being a UN member-country, one third of our people are still living below poverty level and our literacy rate is 71 per cent.
Literacy rate of Netrakona district in the year 1996 was 34 per cent while the national rate was 55 per cent. The Education Development Association (EDA), a non-government organisation, has been working since 2005 for improvement and support of quality primary education in 15 unions of Kendua upazila of Netrakona district. From our experience, we can share that despite our efforts, the literacy rate of that area is not yet at a satisfactory level. The locality has uniformity in all areas. The EDA is adopting many programmes taking huge loans from international agencies. This has given an alarming rise to the Association's debt-service liability without creating any sufficient assets.
The Finance Minister has allocated Tk. 310.43 billion as interest payments against loans for the year 2014-15. The annual budget is Tk. 2,505.06 billion for the same year. From a businessman's point of view, the allocation of Tk. 310.43 billion for the year 2014-15 for interest payments is very alarming.
Population of a country increases at its own rate. The government tries to control it. The success of the initiative depends on the honesty and efficiency of the concerned people. Population is correlated with economic condition, more specifically per capita income. Bangladesh conforms fully to the Education for All (EFA) objectives, the Millennium Development Goals (MDG) and international declarations. Article 17 of the Bangladesh Constitution provides that all children between the ages of six and 18 years receive secondary education free of charge. Our government is claiming that near about all school-going children, which is 109.3 million in number, are now enrolled at primary level. It is very optimistic but preparation for tomorrow to accommodate this large number at the secondary and higher secondary level is not there. If the enrolment figure is correct, then we need more high schools and colleges. Before everything, we need quality education from primary level.
Schooling system is one of the significant components of the education policy. We cannot expect any dramatic behaviour from the people engaged in education sector. If one of law-enforcing teams goes out for duty with a vehicle without fitness or even a license, is it reasonable to expect that they will duly discharge their duty as per law?
Source of the government's income is tax revenue from members of the public. The government collects it through direct or indirect taxes. It has set a target of Tk. 1,497.20 billion as revenue to be collected during the fiscal year that will end on June 30, 2015. Of this figure, Tk. 560.86 billion is to be collected from the wealthy people against their earned profit or income and the rest from the common people of the country as indirect tax. But it is also true that one-third people of our country are living below the poverty level.
The government should ensure productive use of public money while spending it. The money comes from 160 million people, out of whom 50 million lack even the ability to buy their food. But this is the system for almost every government.
If the government spends public money with due care and proper planning, then the entire economy will be benefited as there will also be an increase in revenue earning and Tax-GDP ratio. As a result, spending capacity of the government will increase.
The National Board of Revenue (NBR) will be the right authority to take the initiative to protect the interest of the tax-payers. Somebody should take the responsibility for ensuring productivity of investment from the government exchequer.
The writer, an FCA, is Chairman of the Education Development Association (EDA). akc@bol-online.com
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