Government may opt to take loan from the reserve to ensure vaccination for 70 to 80 percent of the citizens. This will increase the budget deficit by 0.4 percent. Policy makers need not worry too much about this increase in deficit.
Instead, they ought to prioritize ensuring adequate allocations for health, education, and social safety nets. Unnayan Shamannay’s Lead Economist Robart Shuvro Guda and the organization’s Policy Analyst Zinia Sharmin said these on Saturday at an online discussion about the proposed budget with the students of six universities.
The session was moderated by Unnayan Shamannay’s Coordinator Zahid Rahman, while eminent Sociologist and the organization’s Emeritus Fellow Khondoker Shakhwat Ali made the concluding remarks.
Participating students raised the issue of inadequate allocations in the proposed budget for social safety nets.
In response, Robart Shuvro Guda said that along with increasing allocations and coverage of the existing safety nets, the government must also consider taking up new programs considering the existing realities. A lot of workers are returning from abroad.
A large portion of the urban workers are also returning to the villages. Safety nets should be initiated so that a significant share of these workers may be engaged in the rural areas. Safeguarding these people will contribute towards maintaining the domestic demand, which in turn will benefit the macroeconomic condition of the country as well.
In response to another question, Zinia Sharmin pointed out that Bangladesh being on the way of attaining developing country status amid the pandemic situation reflects the macroeconomic strength of the country.
However, instead of thinking about how long it will take to get the developing country status; policy makers must prioritize safeguarding the lives and livelihoods of the people. Bangladesh needs to start working for universal pension scheme and health insurance from now- she opined.
In the concluding remarks, Khondoker Shakhawat Ali said that Bangladesh, like any other country now, is going through an extraordinary phase. Hence, ‘business as usual’ budget cannot be expected from the policy makers. The journey of Bangladesh’s inclusive development has definitely hit a bump due to the pandemic.
However, there is still scope for comprehensive socio-economic recovery- he added. Mr. Ali further added that the planning for recovery needs to be as participatory as possible. And for that the policy makers must engage with all the stakeholders at home and abroad.
