Efficiently utilising budget allocations

The Daily Star  June 22, 2020

A task force could implement this

While this year’s proposed national budget was not much different from the previous one—the size of the budget only slightly increased—citizens are more concerned this year about the budgetary allocations made in various key sectors and their proper implementation since the Covid-19 outbreak has badly affected the country’s economy and has also exposed the acute weaknesses of our health system. Against this backdrop, the proposal given by noted economist Rehman Sobhan, chairman, Centre for Policy Dialogue, to form a task force to oversee the implementation of the budget seems to be a well thought out, rational approach.

According to his proposal, the task force should mainly oversee three issues— how the allocated money in the health sector is being used during this Covid-19 crisis, whether the money allocated for the social safety net programmes is reaching the beneficiaries and the implementation of the government’s stimulus packages. He also proposed that the task force should be formed with government officials and members of the civil society, which would submit an updated report on budget implementation every three months.

In the proposed budget, Tk 29,247 crore was allocated in the health sector, up from Tk 25,732 crore in the last fiscal year. Additionally, a lump sum of Tk 10,000 crore has been proposed for emergency response to the pandemic. The allocation for social safety net programmes has been set at Tk 95,574 crore—up from Tk 81,865 crore last year. Although allocations in these sectors have slightly increased compared to the previous year, there was no mention in the budget about how the money would be utilised. While there are urgent needs for increasing the number of ICU beds and ensuring oxygen supply facilities in all government hospitals, it has not been mentioned in the budget how the money for emergency response to Covid-19 would be used. There was also no mention of any specific programme for the urban and new poor who have been hit the hardest by the pandemic. The efficient disbursement of the stimulus packages is another issue that needed the government’s attention in the proposed budget.

We think the government needs a well-researched plan to properly utilise the allocated money in different sectors and should also seriously consider the proposals made by CPD for efficient implementation of the budget.