Talk with politicians for next budget

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The government should consider consulting political parties before adopting the budget for the next fiscal year so that the next elected government accepts it, Regulatory Reforms Commission (ACC) Chairman Akbar Ali Khan said yesterday.

“It isn’t clear how the elected government will accept the budget if the election is held by December this year. Some say they would not accept it unless the government consults with them. I think the government should consider their demands for proper implementation of the budget,” Akbar said.

Akbar, a former finance and planning adviser, made the remarks at a discussion on the framing of PRSP (Poverty Reduction Strategy Paper) and the fiscal year budget in view of the stakes of the coastal people who constitute 36 percent of the country’s total population.

The government in its current year Annual Development Programme has allocated only 0.62 percent or Tk 165.14 crore directly for the development of coastal areas, according to the programme organised jointly by Bangla daily Prothom Alo and two NGOs — Samannay and CODEC (Community Development Centre) at Cirdap auditorium in Dhaka.

The government should allocate adequate resources in the next budget for disaster protection and infrastructure development in the coastal belt and an employment generation scheme should also be considered, said Akbar.

The RRC chairman was also critical about the PRSP document and said, “It’s outdated and all of its major macroeconomic assumptions have been proven wrong.”

“Nobody, even those at Hemayetpur [known for its mental institution], will believe the inflation now is only 5 percent,” Akbar said referring to the PRSP projection on inflation.

Suggesting changes in the framing methodology of the PRSP, he said it has been prepared from a national viewpoint. But the reasons of poverty vary in different places and regions even in a single country, Akbar explained.

“It’s not possible to reduce poverty throughout the region with identical programmes. The nature of poverty is diverse, rather than homogenous,” he added.

“I have seen nearly a hundred PRSP documents. There may be differences in the titles of the PRSP of one particular country, but there is no difference in the contents,” said Akbar.

He recommended the government prepare a reality-based PRSP that also recognises the diverse nature of poverty.

Dr Moshiur Rahman, former finance secretary, said policymakers should consider the nature of poverty in a particular area before framing the policy and allocating resources.

Referring to Mongla Sea Port, he said the economy of the region would be better off if the port is modernised the right way.

Abdul Qayum, joint editor of daily Prothom Alo, said there should be separate allocation in the budget of next fiscal year (2008-09) to protect coastal people from the fury of climate changes resulting from global warming.

Atiur Rahman, chairman of Samannay, said diversification of earning sources could be one of the main weapons for the coastal people to fight natural calamities and small industries could be developed for alternative employment opportunities.

He also recommended developing saline-resistant crops that are suitable for cultivation in coastal areas.

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