Planning Minister MA Mannan on Wednesday said that Prime Minister Sheikh Hasina had given a “blank check” to the health ministry for whatever necessary for Covid-19 management.
“But the problem is they lack the capacity to absorb money,” he said at a post-budget discussion of the American Chamber of Commerce in Bangladesh.
AmCham President Syed Ershad Ahmed set the context of the discussion styled “Budget for winning back the Economy”.
He said the novel Covid-19 is casting a shadow around the world, which is all the more reason we should come together to combat.
While the massive loss of human life has been a tragic consequence of the coronavirus pandemic, the effect on global and national economies cannot be understated.
In the proposed national budget for the next fiscal year, 2020-2021, the government has taken certain measures in support for protecting critical domestic industries and for attracting more investment even in the crisis to win back the economy.
However, he said, the proposed budget shall be highly challenging in the current pandemic and highlighted few of AmCham’s concerns.
On healthcare sector, he said the epidemic has thrown the inadequacies of Bangladesh’s health sector into stark contrast.
“As expected, Finance Minister proposed an allocation of Tk29,247 crore for health services and health education sector, up by 23.44 percent from last year’s revised allocation, still much below our expectation considering the current situation,” he said.
“We’re yet to learn more about the specific guideline on the ‘mega plan’ for the sector, which includes a medium-term 3-year plan and a 10-year long-term plan addressing the severe shortcomings exposed by the crisis.”
The planning minister also acknowledged the shortcomings of the health sector and said there was no way to say that they did not prioritise the health sector in such a crisis.
“The prime minister declared higher priority to health. She said prevent its spread so that lives can be saved. She also advised us to drop large projects and provide support to the health ministry.
“We were very quick to manage $100 million from the World Bank,” he said, adding that the prime minister clearly said that health is the number one priority followed by agriculture.
“The prime minister also said that there is no bar. I give a blank check ..money is available. Money is not a problem.”
“She assured that if you come with more projects we will give more projects,” he said, adding that it’s the health ministry’s own capacity problem to absorb the money.
The planning minister said the health infrastructure was not ready for the disaster like covid19. We immediately procure very important equipment.
What I am trying to say is that money is not the problem. The point here is their capacity to absorb. They cannot produce doctors, nurses overnight or technologists overnight.”
The AmCham made several recommendations for different sectors for incorporating those before finalizing the budget.
The AmCham President appreciated the increase in allocation Primary and Mass Education while expect implementing quality technical and vocational education to achieve the Sustainable Development Goals (SDGs) keeping the Fourth Industrial Revolution in mind.
“It will certainly help us regain the jobs lost due to COVID-19 lacking the skills to remain employed overseas,” he said.
On research & development, he said, the research and development (R&D) budgeting decision is crucial for multiple reasons because it is the function that develops plans much ahead other activities acting as a catalyst for speeding up the growth of any country prior to any unforeseen crisis by way of introducing breakthrough.
“For instance the deficiencies of the Institute of Epidemiology, Disease Control and Research have shown us once more how we could leverage from the investments in such fields and it applies to taking untapped opportunities in the field of Economy as well.”
On communication and transportation, the AmCham strongly feels that it is one of the most important infrastructural elements which can boost trade and investment alone more than anything.
“Apart from the road & air ways , if we focus more on developing waterways & railways communication it would also help the common people to reduce the cost of transportation for both goods and passengers ensuring a smooth supply chain in a country like Bangladesh.”
On undisclosed money utilization, the President said: “We certainly discourage the move to legalize the undisclosed wealth or money by paying a 10 percent tax which is in our opinion “Unethical”.
“However, the opportunity to stimulate the capital market, Industrial investment or any productive sector to generate employment is acceptable.
We recommend that the rate should be higher than that of 10%.
“If allowed in such a manner, it may discourage the regular taxpayers of the country.”
On borrowing from banks, he observed that: “We believe Private sector credit growth will be hampered if the government borrowed the total amount from the banks worsening the existing liquidity crisis.
“We urge the central bank to devolve a major portion of the borrowed amount on its own accounts, which would also help boost money supply in the market.”
