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REGD. NO. DA 781 VOL. XXIX NO. 188 SRABAN 11, 1426 BS ZILQAD 22, 1440 HIJRI 16 PAGES PLUS TOGGLE PRICE : TK 12.00
HANDS out
for HELP
City
A budget not of
its time
Kamal fails to get his crisis priorities right as he unveils a normal-time, fatty budget
ZINA TASREEN
SOCIAL SAFETY NET
Any finance minister delivering a national budget wants,
ideally, to project three qualities: calm, authority and very
slight dullness.
He or she wants to give the sense that underneath the
Nothing
specific for
aspirational abstractions of populist politics is a solid grasp
of numbers; that right behind the sunniness of prime-
ministerial rhetoric there is a capable and hard-headed
person, armed with a pocket calculator.
And AHM Mustafa Kamal seems to have failed on all
three counts as he took the podium yesterday to deliver
the budget for fiscal 2020-21 -- against the backdrop
of potentially the biggest public health emergency and
new poor
economic downturn in generations. MOHAMMAD AL-MASUM MOLLA
He opted for salesmanship rather than expectation
There is no specific programme mentioned
management. He presented himself as a surgical mask-
in the budget for the urban poor who have
clad Santa Claus, doling out bountiful good news and
been hit the hardest during the shutdown
dispenser of goodies for all.
of the economy for over two months.
He delivered a budget that -- to anyone who doesn’t
It was partly because of the failure in
read the news closely -- will have made it sound as if the
providing food to the people in desperate
Bangladesh economy was flying on animal spirits: he
need that the government reopened
anchored this fiscal plan based on the irrational calculation
businesses, although the coronavirus
that the GDP growth next fiscal year would be a whopping
outbreak is showing no signs of slowing
8.2 percent.
down.
He maintained more or less the same allocations for
The government allocated Tk 95,574
sectors that would have been understandable were this a
crore in the social safety net programmes,
regular fiscal year, like energy and power, transport and
which is 16.83 percent of the entire budget
communication, public order and safety, defence, and
and 3.01 percent of the GDP. The allocation
local government and rural development.
was Tk 81,865 crore in last year’s revised
But the sectors that were crying out for sizeable boosts
budget.
in their budgets got nominal raises like health, social safety
“We have been increasing allocations
net, agriculture and education.
in the social security sector every year to
Nothing is more imperative for Bangladesh right now
improve the poor people’s condition. By
than taming the coronavirus, and for that, the health budget
SEE PAGE 5 COL 5 SEE PAGE 5 COL 3
GDP GROWTH 5.8 Non-tax revenue Tk 2,05,145cr Tk 25,003cr There is hardly any precedence of
preparing a national budget under
INCOME TAX
Not enough when Some are more Loads ease on
it’s a pandemic equal to govt low income
SYED ASHFAQUL HAQUE
Health allocations rise by 13.66pc but still hover
below 1pc of GDP; Tk 10,000cr to combat corona
Protected and unprotected: an oblique line of the
government’s preference separated the two.
One group of people is the responsibility of the Extraordinary
groups
government and the other group isn’t. One group Black money holders poised to
WASIM BIN HABIB and TUHIN SHUBHRA ADHIKARY Domestic Product -- only 0.92 percent,
lowest compared to its peers in South Asia.
of people is protected by the government and the times, ordinary reap ultimate benefits
“Good decisions come from experience, other group of people left in the cold. Privileged
but experience comes from making bad
The country’s public spending on
healthcare has been hovering around
ones are the public servants and overlooked ones budget SOHEL PARVEZ
decisions.” the private employees.
1 percent of the GDP for many years, DEBAPRIYA BHATTACHARYA
The words of wisdom of American writer The line of divide was always there, and it only Taxpayers in the low-income bracket have something to
although the World Health Organization got embarrassingly prominent in the onslaught of
and humorist Mark Twain hardly fits when recommends it to be at least 5 percent. The much-anticipated feel good about.
it comes to setting priority in the budget of the ongoing coronavirus pandemic. As budgetary national budget for fiscal They are going to pay less tax in the next fiscal year. This
Bangladesh’s healthcare system has measures were laid out yesterday, the discrimination
Bangladesh, even in the aftermath of the already been struggling with the increasing year 2020-21 turns out to means they will have more disposable income and be able
looks more prominent than ever. be a document trying to to spend more to meet the needs of their families amid
novel coronavirus outbreak. burden of diseases, low quality healthcare It’s a job that a very few in the world’s ivy league run on the momentum. Covid-19 pandemic.
With the Covid-19 pandemic posing coverage and an inadequate national of economists would have dared to do, announcing The mentioned four
the biggest challenge to public health budget in this regard. The government will introduce a new tax rate of 5 percent
the budget of a country caught in the middle of a strategic stances involving
in this generation, spending more on As the size of the budget increased every on annual income up to Tk 400,000. It has maintained the
pandemic that brought the economy down to its
the healthcare has been the call from year, the allocation for health sector rose increased public tax rate at 10 percent since fiscal 1997-98.
knees in the last four months. Mustafa Kamal is a
economists and medical experts. too. But in terms of percentage of the total expenditure, special credit The limit of tax-free annual income will be raised to Tk
feisty finance minister in that sense, especially when
But as Finance Minister AHM Mustafa budget, it remained around 5 percent over facilities, expansion of 300,000 from Tk 250,000 which remained unchanged for
every hand extended in his direction is for help.
Kamal placed the proposed budget for the years. safety net and liquidity the last five years.
No other finance minister in our living memory
fiscal 2020-21 in parliament yesterday, the It is 5.14 percent of the total outlay this faced a crisis of this magnitude. Everybody, rich and infusion are very much Rich taxpayers will also enjoy tax bill cuts as the highest
call for prioritising healthcare failed to time. poor alike, is seeking help from the government, in the right direction. tax rate of 30 percent, introduced six years ago, for high-
elicit a strong response. Unsurprisingly, out-of-pocket health which is also extending its hands for help from However, the numbers put income earners will be reduced to 25 percent.
The minister earmarked Tk 29,247 crore expenditure for households is very high. foreign lenders, the central bank (by asking it to up in the fiscal framework But the ultimate gainers are the holders of undeclared
for the health ministry, an increase of 13.66 About 65 percent of all health expenditure print taka) and black money-holders. are far from the reality. It money, known as black money, thanks to coronavirus-
percent from the outgoing fiscal year’s in the country is borne privately by If we analyse the government response to the is a justified apprehension induced economic crisis that has created an opportunity
allocation. households. health and financial security for all in the lead-up that the core budgetary for them to legalise untaxed money by paying a nominal
“The health sector was given utmost In the meantime, the Covid-19 to the pandemic and beyond, we can see the line of numbers and ratios may 10 percent tax, much to the frustration of compliant
priority,” Mustafa Kamal said. pandemic has exposed vulnerabilities and divide all too clearly. The government cared most, if become functionally taxpayers.
But his speech on giving priority does systemic weaknesses in the health sector not only, for the public staff and least for the private obsolete within next Over the years, successive governments offered black
not fully reflect the reality. Because, with -- from shortage of skilled personnel to staff. three to six months. money holders the opportunity to whiten undisclosed
this allocation, the share of health budget poor infrastructure, weak monitoring and SEE PAGE 8 COL 3 This may also blunt the income or wealth.
remains below one percent of the Gross SEE PAGE 5 COL 3 SEE PAGE 8 COL 1 SEE PAGE 14 COL 4
City
BUDGETIN-DEPTH 2020-2021
DHAKA FRIDAY JUNE 12, 2020
JAISHTHA 29, 1427 BS 3
SUGER GOLD FRIDGE AIR SANITARY LPG DOWN
Sweeter shining fresh and CONDITIONER NAPKIN CYLINDER
brighter colder time to chill out more affordable ditch kerosene
There’ll be crisis if
on the rise money
once again for the jobless STAFF CORRESPONDENT
Year after year,
not used properly
Finance minister gives no specific guidelines on how opportunities given by the AKM ZAMIR UDDIN
5pc point increase in government to whiten black
supplementary duty on major challenges of employment creation to be resolved money has failed to attract A good number of central banks across the globe have started printing
significant declaration, so money to get a turnaround from the ongoing financial recession.
services; operators and WASIM BIN HABIB and MOHIUDDIN ALAMGIR graduates who are now apprehending a
bleak future ahead as Covid-19 appears
the new budget proposes a
new, lucrative offer -- invest
For instance, the US’s central bank, the Federal Reserve, has already
started printing money to implement the government stimulus packages
users frustrated Ever since Belayat Ahmed completed his
graduation two years ago from a college
to be one of the biggest destroyers of and nobody, not even the worth $3 trillion, a move that has boosted production and generated
employment in the history. income tax authority, will employment.
MUHAMMAD ZAHIDUL ISLAM under the National University, he applied to Hundreds of jobs could be lost be able to question its The Bangladesh Bank (BB) has taken the same measure to revive the
different private companies and submitted permanently and according to preliminary source. economy as it has already decided to inject about Tk 50,000 crore in the
The cost of using a mobile phone his resume to a few job boards. estimates by the Asian Development Bank, For the last five years, form of different refinance schemes.
would go up by more than 5 percent as Yet, the youth from Khulna could not get this number of jobless people could rise to black money-holders Besides, Finance Minister AHM Mustafa Kamal yesterday has set a
the proposed budget looks to hike the the “golden dear”. 1.4 million. have been able to whiten borrowing target of Tk 84,980 crore from the banking sources.
supplementary duty on all kinds of SIM In the meantime, the outbreak of novel Bangladesh was already struggling with their assets by investing in The government traditionally borrows a major portion of its target from
services to 15 percent from the previous 10 coronavirus disrupted everything, having a huge number of unemployed population residential buildings and banks. But it would be tricky for banks to provide this service as they are
percent. an impact on the employment landscape -- nearly 26 lakh to be precise -- even before other similar properties. now going through a cash crunch of their own due to the economic fallout
The carriers have already implemented and the job market. the pandemic began in the country. This offer was mainly for stemming from the ongoing pandemic.
the greater supplementary duty from With the number of job postings Though the government has been those who did not declare This mean, the government will have to knock at the doors of the
12:00am today, which has taken the dropping sharply of late, he doesn’t see any saying job creation will be one of the main their full income when central bank. The Bangladesh Bank will have to oblige, but by printing
customers’ total service tax to 33.25 per cent. possibility of getting a job anytime soon priorities, yesterday’s budget speech did not filing their taxes for a money -- a move that can go on to pose stability risks.
The National Board of Revenue (NBR) as the pandemic and subsequent closures bring much good news for unemployed number of years. In fact, the government is already heavily relying on the central bank’s
yesterday evening issued a Statutory rendered a large number of people jobless. youths like Belayet or returned migrant As per the existing law, monetization power.
Regulatory Order (SRO) to this effect, “I need a job to support my family. But I workers, or those who have lost jobs or are people with vast amounts Between July last year and May this year, the government took out a
shortly after Finance Ministaer AHM don’t know what will be the situation after at the verge of losing earning sources as of undisclosed wealth record Tk 64,296 crore from the banking sources and 49.56 percent of the
Mustafa Kamal’s budget speech was over. the pandemic,” said the 24-year-old. fallout of pandemic. could only take advantage funds were footed by the BB.
SEE PAGE 5 COL 3 Belayat is among the thousands of SEE PAGE 12 COL 5 SEE PAGE 5 COL 1 SEE PAGE 5 COL 1
Nothing special
for small farmers
PINAKI ROY
Though farmers have been hit hard by the pandemic, no
special stimulus package for small farmers was announced
in the proposed budget, frustrating agriculture experts and
economists.
It has happened despite Finance Minister AHM Mustafa
Kamal’s announcement that agriculture was the second
highest priority after the health sector this year.
In his budget speech yesterday, Mustafa said the
pandemic has affected the agriculture sector in Bangladesh
and the government puts the highest emphasis on
addressing the adverse effects on domestic sectors.
“One of the key priorities in the post-Covid-19 economic
recovery plan is to keep the momentum of agricultural
production,” he said.
But how the government was going to put that “highest
emphasis” and how it was going to keep up the momentum
was not answered in the proposed budget.
Talking to The Daily Star, Dr Mustafizur Rahman, a
distinguished fellow at Centre for Policy Dialogue (CPD),
said, “The government is only going to continue all the
subsidies and incentives it provided in the agricultural
sector last year.
“Initiatives needed to be taken so that farmers get fair
prices for their produce. But we haven’t seen that in the
proposed budget. Maybe it was assumed that the agriculture
sector was not hit as hard as the SME and garment sectors
were,” he said, adding that it was necessary to ensure food
security in the country.
Abdus Sattar Mandal, former vice chancellor of
Bangladesh Agricultural University, said the government
should have announced a special stimulus package for
farmers, like Tk 1,000 for each farmer who owns at least
one acre of land.
Such an initiative would increase the cash flow in the
SEE PAGE 12 COL 2
City Edition
Returnees
in distress
PORIMAL PALMA
Sabbir Hossain of Munshiganj returned home from
Malaysia in mid-March when the Southeast Asian country
was planning a lockdown to stem the spread of coronavirus.
“I thought returning home instead of being trapped
there would be better. So, I came back. However, now
my employer is saying I cannot go back to work in
Malaysia because there is no work,” he told The Daily
Star yesterday.
Sabbir, 27, who worked in the construction sector in
Johor Baruh for four years, said it took him almost three
years to recoup the migration cost of Tk 3.5 lakh before he
saved some money to construct a house.
“I don’t have any savings now. If I get some loans, I may
start a small business,” he said without being sure what
business he can do.
Sabbir said most of his Bangladeshi colleagues in
Malaysia are now jobless and are worried about their future.
Migration experts and recruiting businesses fear
several lakh Bangladeshi migrants might return home in
the coming months after losing jobs as the economies
of destination countries, mostly in the Middle East and
Southeast Asia, are being badly affected because of the
Covid-19 pandemic.
Against this backdrop, Finance Minister AHM Mustafa
Kamal has proposed the allocation of Tk 500 crore that
will be loaned to returnee migrants on easy terms for their
rehabilitation through the Probashi Kalyan Bank. The
Wage Earners’ Welfare Board will allocate another Tk 200
crore with a similar objective.
SEE PAGE 6 COL 1
Bailout package
bottleneck still
Growth, revenue TAXSLABS CORPORATE TAX
Non-listed companies
a concern
Business leaders say
targets too lofty FY 2020-21 32.5%
Excise duty increased for exporters with nothing Tk 3,000 Listed mobile operators
40%
for big balance holders
SOHEL PARVEZ
REFAYET ULLAH MIRDHA to cheer for Considering how the Covid-19 Up to Tk 3 lakh No tax
outbreak has negatively impacted AHSAN HABIB Next Tk 1 lakh to total
The stimulus packages and Bangladesh’s garment industry, 5% Mobile phone operators
People with big bank income (Tk 4 lakh)
balances are going to
measures announced by the
government are inadequate to
the country’s main export sector,
Finance Minister AHM Mustafa
The proposed budget has brought no cheers
for stock investors, who have been battered
45%
see up to a 60 percent revive exports from the fallouts of Kamal proposed the continuation by a prolonged slump in indices, but Next Tk 3 lakh 10%
hike in excise duty rates the ongoing coronavirus pandemic, of the 1 per cent additional cash promised measures to develop the country’s to total income TAX-FREE INCOME LIMIT FOR
the next fiscal year, as according to industry leaders. bond market.
the government aims to
incentive scheme for the upcoming (Tk 4 lakh-Tk 7 lakh) Women and 65 years
“The government needs to go fiscal year. Though the government wants to allow
collect higher taxes from beyond such measures if it wants investment of black money in the stock Next Tk 4 lakh 15% plus citizens
The government has been
relatively well-offs to attain to boost exports and protect jobs of market, investors say such a move barely
the target of increased
providing a 1 per cent additional to total income Tk 350,000
thousands of workers,” they said. cash subsidy on apparel exports yielded good return in the past.
revenue collection for next Prompt implementation of the since the beginning of the outgoing Adding to their woes, Finance Minister (Tk 7 lakh- Tk 11 lakh)
fiscal year, according to Tk 5,000 crore, Tk 20,000 crore and AHM Mustafa Kamal proposed to reduce
the budget proposed by
fiscal year. Next Tk 5 lakh 20% Challenged persons
Tk 30,000 crore stimulus packages This means garment exporters the corporate tax gap between listed and
Finance Minister AHM announced by the government have enjoyed a 5 per cent cash non-listed companies which analysts think to total income Tk 450,000
Mustafa Kamal. would go a long way in safeguarding would discourage non-listed firms to go (Tk 11 lakh-Tk 16 lakh)
incentive on all non-traditional
Any account holder export-oriented sectors, they said. public.
export markets as well.
who has a bank balance Cooperation from the banking Other than the EU, the US and Corporate tax for non-listed companies Rest of the income 25% Wounded freedom fighters
containing an amount sector is needed to speed up might be brought down by 2.5 percentage (Tk 16 lakh-plus) Tk 475,000
Canada, Bangladesh considers all
between Tk 10 lakh and implementation of the stimulus points to 32.5 per cent, but the rate would
markets as non-traditional.
SEE PAGE 14 COL 4 packages, they added. SEE PAGE 6 COL 1 SEE PAGE 6 COL 4
BUDGETIN-DEPTH 2020-2021
DHAKA FRIDAY JUNE 12, 2020
JAISHTHA 29, 1427 BS 5
Blindsided by Covid-19 Mobile bills on the rise A budget not of
FROM PAGE 2
economy merely speculative. One cannot
fund allocations alone. Yet, enough funds
must be made available for tackling the
FROM PAGE 3
Carriers complied with the SRO and have
started updating their billing system and
Shatil, a student of Daffodil International
University.
its time
but sympathise with the finance minister for endemic, by creating facilities for patients sent text messages to all their customers FROM PAGE 2
This process will increase all costs related
seeming to grope in the dark in preparing who need hospital treatment, and for about it. to mobile-phone services and that will be a needed to have been increased by leaps and bounds. And
a budget which he optimistically titled as largely increasing the numbers of testing “Increasing supplementary duty on all disaster, he also added. yet, that was increased by 13.63 percent from the current
economic recovery and a road map for the for detecting bot existing infections and telecom related services is highly regrettable Shahed Alam said a huge portion of the fiscal year’s original allocation.
future. The reality is that one cannot at this immunity acquired through past infection. and according to the SRO issued by NBR, population had started to rely on digital Hospitals are overwhelmed with COVID-19 patients,
point even predict the extent and length Epidemiologists agree that for devising we are going to implement the new SD communication during the shutdown and so much so that non-COVID-19 patients are denied
of the economic downturn, while the any meaningful strategy of containing the [supplementary duty] rate from 12:00am social distancing measures enforced due to treatment.
immediate need is to find a balance between pandemic, such tests on a very large scale midnight. All preparations in this regard the coronavirus pandemic. Raising SD will Since we don’t know when the epidemic curve would
policies for savings lives and livelihoods will need to be conducted, and this will has been completed,” said Shahed Alam, certainly have an adverse impact on this flatten out, there was an acute need to ramp up the health
as the pandemic scenario unfolds. The need funds even if some low-cost testing chief corporate and regulatory officer at trend. services expenditure now. How long are people going
budgetary allocations will play an important procedures become available. Robi. “We are very sad that even after making to live under the soul-crushing anxiety of being denied
role in all this, but not without a national Of course, the budget has had to be Apart from the supplementary duty, significant contributions to the realisation medical treatment?
comprehensive strategy of surviving this prepared under severe resource constraints. mobile phone users also have to pay 15 of the Digital Bangladesh vision by 2021, Also, perhaps, this was the occasion to right the
crisis, which still seems missing. The target of revenue collection at about percent VAT and one percent surcharge the telecom sector’s problems have been historically abysmal attention this sector got in the
In allocating funds, as expected, the 12 percent of projected GDP is unlikely to on their bills, which takes the total tax for completely ignored in the proposed national budget. Alas, it wasn’t meant to be.
budget has rightly focused on strengthening be achieved, given the economic downturn mobile phone usage to 33.25 percent. budget,” he added. The coronavirus rampage has magnified destitution
public health facilities particularly to deal and an uncertain recovery. Although Therefore, to get service worth Tk 100 As of March, there are 16.53 crore and stands to unravel the brilliant progress made in
with the pandemic, providing safety nets there are already some commitments of users will have to recharge Tk 133.25, active mobile connections in the country, poverty alleviation over the past decade. So, like health
including food security for the poor, and loans from the international financing or against each Tk 100 topped up, a user of which 9.52 crore are also connected services before, there was an acute need to ramp up
providing various kinds of incentives and institutions, the projection of foreign loans would get services of Tk 75.05. to the internet, according to Bangladesh social protection to help poor households weather the
subsidies to agriculture and enterprises of worth about 9 billion US dollars financing Even before this proposed budget, Tk Telecommunication Regulatory pandemic.
various kinds who have incurred losses due of about 40 percent of the budget deficit, 53 out of every Tk 100 spent by customers Commission. But it was increased from 2.58 percent of GDP this
to the lockdown. The question is whether is very unlikely to be realised. As it is, the was going to the government exchequer in Total revenue in the market currently fiscal year to 3 percent.
different forms of taxation, Alam said. stands at around Tk 25,000 crore.
these allocations will be enough to achieve projected budgetary deficit amounting In a country of 160 million, about 35 percent are now
“Hence, adding 5 per cent SD on Robi’s top brass also expressed their
the intended goals, even if the usual misuses to 6 percent of GDP is nearly double the living in poverty, according to a recent study of the Centre
the already ultra-heavily taxed telecom dissatisfaction at the continuation of the 2
and leakages of funds can be minimised. average ratio of the recent years. The deficit sector will only bring further misery for percent minimum tax which was imposed for Policy Dialogue. This begs the question, given the
More than ever, the effectiveness of may thus become even larger unless the customers,” he said. on their revenue in the 2019-20 budget. uncertainty over how severe the impact may become, was
the budget will depend more on the government resort to more borrowing Both operators and users expressed “Considering mobile operators’ the increase in social safety net adequate?
management of implementation than on from the banking system, which is already dissatisfaction at the move and said in the contribution in fighting the current Agriculture was another sector that deserved greater
financial allocations, in respect of the relief, projected to cover about 45 percent of the last few years, tax on mobile phone use has Covid-19 pandemic and building the focus, as the nation must be fed. But it was increased by
rescue and recovery measures. deficit, the rest being covered by a reduced increased, which has negatively affected digital ecosystem, we believe there is still just 4.68 percent from the current fiscal year.
The budget has proposed increases in the projection of earnings from the sale of customers’ service-availing trends. an opportunity to review this self-defeating The education budget needed to be augmented seeing
coverage of the social security programmes savings instruments. Usage and user numbers will certainly tax and hope that the government will take that about 4 crore students would not be getting back to
and the allocations have been increased A saving grace is that the debt burden of not increase under this tax structure, said a positive decisions in this regard,” Alam the classrooms anytime soon.
to some extent; but these expanded the government from domestic and foreign chief executive officer of a leading carrier. said. Lessons would have to move to the virtual space and
programmes may still fall short of the sources is not too high to pose any problem He said in the last six years taxation In the upcoming budget, the finance for that equipment need to be bought at both ends. And
need, particularly in terms of identifying of fiscal sustainability, so that there is on users increased 122 percent, which minister has also proposed a continuation even if classes start physically, there needs to be more
and supporting those who have lost their enough justification to go for a higher goes against the government’s digitisation of the VAT exemption on mobile device sessions to give the same lesson to maintain the social
livelihoods because of the economic budgetary deficit, particularly given the vision. manufacturing, as well as the 5 percent tax distancing rule.
disruptions and have now joined the ranks needs for public spending in the current “We cannot accept this proposal as on assembling. In short, massive investment is needed, but the
of the poor. Some studies have shown that crisis situation. Moreover, the public it will increase our costs,” said Sarwar education budget was increased about 8 percent.
providing for the minimum subsistence of demand for bank borrowing may not There were so many areas where the expenditure could
the needy people including these new poor
may require minimum public spending of
pose much problem of meeting the credit
demand from the private sector, which Nothing specific have been scaled back to make room for a bigger budget
for the four overheads. When austerity was needed, he
up to 4 percent of GDP, depending on the will likely to remain stymied depending FROM PAGE 2 demanding food. chose to be profligate.
length and severity of the various social on the extent of economic recovery, and now, about one-fourth of the families in The new budget mentions that senior The allocation for public services was increased by a
distancing measures and the extent and also because the private sector enterprises the country have been brought under the citizens in need in 100 of the upazilas staggering 54.70 percent.
speed of economy recovery. will be able to access subsidised bank social security net programmes,” Finance hit the hardest by the pandemic will be What was more baffling was that he has earmarked Tk
Incidentally, the challenge of managing credit through the refinancing facilities Minister AHM Mustafa Kamal said in his brought under the old-age allowance 16,148 crore for the upkeep of state-owned enterprises
the expanded social security programmes from Bangladesh Bank as part of the budget speech for 2020-21. scheme. It is expected that five lakh people when Tk 1,499 crore had sufficed for the purpose in the
have exposed the problem of lack of government’s economic stimulus packages. Contacted, Economist Hossain Zillur revised budget for this fiscal year.
will be the beneficiaries.
representative credible local governance. Given the resource crunch, extreme Rahman said, “Due to the pandemic, The amount is 61.5 percent more than the lump sum
Besides, widows and divorced women in
This compels the government to rely on austerity will be needed in public spending, the number of poor people in the urban amount set aside to fight the rogue virus during the course
the centralized bureaucracy with very little which may require not only weeding out the 100 upazilas will be brought under the
areas has increased and they should be of fiscal 2020-21.
local knowledge to manage things at such nonessential revenue expenditures, but also social safety net coverage. This is likely to add Energy and power took up 4.7 per cent of the budget.
the beneficiaries of the social safety net 3.5 lakh new beneficiaries to the coverage.
times of crisis. It is no wonder that the cuts in spending on more than a thousand Unless a vaccine is widely available for COVID-19, which
programmes. Specific programmes are Tk 100 crore for the Rural Social
Indian state of Kerala, known for its strong on-going development projects. One may would not be until 2021 at least, neither the factories
argue that such cuts will create delays in the needed for the people who slipped into Services Programme will be allocated to
local governance, has proved a model for would be roaring nor the businesses would be bustling.
coping with Covid-19, by implementing completion of these projects; but if we could poverty during the shutdown.” keep the rural economy moving after the So what is the need for so much energy?
effective lockdowns, infection tracing and have tolerated for years a culture of overruns How the money allocated for the sector pandemic, the minister said yesterday. Then comes the trivial matter of where the money
delivery of social security assistance. in time and cost in project implementation, is distributed among the poor people Mohsin Ali, general secretary of would come from to fund the Tk 568,000 crore-
The proposed budget has allocated we can very well do so at such extraordinary determines the success of the social safety Bangladesh Food Rights Network, said the expenditure plan, and the pocket calculator was found
increased funds for the health sector, times. We need to prioritise the foreign net programmes, said the adviser to a allocation for social safety net programmes missing.
perhaps equivalent to about 1 percent funded projects, a few strategic mega- former caretaker government. was not enough because the number of But Kamal did a first-rate job of sounding confident
of GDP, which would imply more than projects where delays will be costly, If civil pension spending is deducted poor people has increased a lot. and in control while jettisoning the years-long goal of
a doubling of the proportion realised in and projects that will help employment from the social safety net, then the 2020- “We demanded six percent of the GDP. keeping the budget deficit to within 5 percent of GDP.
recent years; this proportion will still be generation. But the allocations for spending 21 fiscal year’s allocation would be around It is insufficient and it will not meet the He has tasked the National Board of Revenue to collect
low by the standards of low-middle income for the priority areas, such as public health, 1.5 to 1.6 percent of total GDP, he said. demands. How the new poor will be Tk 330,000 crore, up 9.82 percent from the current fiscal
countries. The ongoing pandemic has social safety nets and food security, and During the shutdown enforced on helped remains unclear,” Ali said. year’s revised budget.
painfully unravelled the extremely poor incentives for economic recovery, specially March 26, there were widespread reports The pandemic has shed light on the In a letter last month to Finance Secretary Abdur
management of our public health system for small enterprises, must be protected, ad of embezzlement of funds and hoarding lack of food security of working-class Rouf Talukder, NBR Chairman Abu Hena Md Rahmatul
which cannot be remedied overnight by if possible, enhanced. of relief material meant for the poor. Muneem said the tax collectors would be able to manage
people and brought to the fore the need
Hundreds of people in different parts of Tk 250,000 crore at best next fiscal year.
There will be crisis the country demonstrated on the highways
to ensure transparency in delivery of the
services, experts said.
And yet, Kamal chose to have his blinkers on and set
the highest revenue target in the country’s history, when
the economic growth would possibly amongst the worst.
foreign loans and grants from donor
Not enough even
FROM PAGE 3
In fiscal 2018-19, some Tk 26,446 crore was agencies and multilateral lenders in the days What would have helped in this challenging time was a
borrowed by the government, where the ahead to offset the pressure stemming from definitive move towards automation to stop evasion and
central bank gave out Tk 10,333 crore.
FROM PAGE 2 lack of management skill.” leakages. But, he was found dithering.
monetisation, said Mansur, also a former governance to inadequate coordination
“Printing money is not a matter of concern He said there is a lack of skilled workers Whatever he said about automation in his budget
economist of the International Monetary among key stakeholders.
at this moment given the current economic in the health management system of speech was a regurgitation of what he had penned last
Fund. There have been some recent instances
state of affairs,” said Ahsan H Mansur, Bangladesh -- both in the health ministry year too -- and we all know how much we have achieved
The government will set Tk 80,017 crore in where patients with flu-like symptoms
executive director of the Policy Research and the Directorate General of Health on that front in fiscal 2019-20. Not much.
foreign loans and grants to manage its deficit and other illness were denied admission Service (DGHS). In many cases, skilled
Institute. financing. at hospitals and subsequently they died The only new move towards automation and
There is no risk of inflationary pressure people cannot be a part of the management
It is set to receive about $1.5 billion this without treatment, which is a fundamental digitalisation of the tax administration is the rebate of
right now as the aggregate demand has due to political issues.
fiscal year from three organisations: the World right guaranteed by the constitution. Tk 2,000 to all taxpayers who will file their income tax
Besides, the sector is riddled with
slumped. Bank, the IMF and the Asian Development Lifesaving machines like ventilators -- returns online for the first time.
rampant corruption, he said.
But the printed money, generally known Bank. critical to the management of Covid-19 And then there is his naïve hope of generating revenue
Prof Rashid-E-Mahbub said, “The
as reserve money or base money, must be But there is a scope to bag about $2 billion cases -- remain elusive and a shortage by giving full amnesty to black money when past moves
health sector is now huge but its planning
used for productive purposes or else it would to $3 billion in soft loans from the IMF if the of oxygen in most of the hospitals have have flopped spectacularly.
and monitoring remain weak. As such,
give rise to stagflation -- a scenario of high government reforms the financial sector. become a matter of grave concern. concerned authorities cannot even utilise The move to slap 50 percent tax on the proven amount
inflation and low GDP growth. Kamal also relaxed the rule to whiten the Talking to The Daily Star yesterday, money allocated by the government.” of over- or under-invoicing, or on the proven amount
So Kamal needs to be mindful of this black money hoping it would give a boost to experts said the allocation for the health Public hospitals lack necessary of false declaration of investment looks promising on
consequence. investment. sector is not adequate in the wake of the manpower, equipment, medicine and paper. But, there were no specifics on how that would be
He suggested the government should He proposed to whiten the black money if Covid-19 pandemic, which served as a most importantly accountability of their enforced.
implement the labour-intensive projects the black money holders invest the amount wake-up call to prioritise on the fragile authorities. The general public, who have While it is laudable that he has given relief to individual
such as building highway and bridges in residential buildings by paying a tax of healthcare system. no alternative but to go to public hospitals, taxpayers by raising the tax-free threshold of income and
on a priority basis under its annual 10 percent on the amount invested, which Zahid Hussain, former lead economist however, do not get proper health services, reducing the tax rate, his move to also bring down the rate
development programmes such that jobs for regular taxpayers is between 10 and 30 of the World Bank’s Dhaka office, said the he said, adding that private medical for those who earn in the highest slab is a proper head-
are generated for the marginal people -- a percent. allocation has not increased sufficiently. services in the country were developed in scratching one.
move the US resorted to to get out of the They will get the same facility if the black As the health sector is facing a crisis, an unregulated manner. The wealthy do not need any tax relief. And when all
Great Depression. money is invested in the capital market for the government should have supported “The problems in the health sector avenues of revenue collection are narrowing, why would
The authority concerned should think at least three years, a privilege not afforded it by allocating more but that has not cannot be solved overnight … The you extend aid to a faction that is not in need of one?
about deferring the construction works of the as part of the previous amnesty package for happened, he said in his reaction on a government should prepare a five-to-ten- The increase in supplementary duty (SD) on mobile
less labour-intensive projects like Rooppur unauthorised money holders. private television. year plan for the health sector considering phone usage when it has become an absolutely essential
Nuclear Power Plant and Padma Bridge. But the black money-holders will not Prof Dr Muzaherul Huq, former people’s expectation and can make an service is a below-the-belt move.
The government will have to check respond to the relaxation considering the regional adviser, WHO, South East Asia outline from the National Health Policy The hikes in SD on chartered planes and helicopters,
both corruption and sluggishness for previous instances, said Mustafizur Rahman, Region, said, “The health sector has failed. 2011, which remains unutilised mostly,” air-conditioned launch fares, cars and jeep registration
implementation of projects under the ADP or distinguished fellow of the Centre for Policy Despite past allocations of budget, the added Rashid-E-Mahbub. and cosmetics and cigarettes and the 60 percent hike
else the printed money will create inflationary Dialogue. sector still remains heavily under-utilised. TK 10,000 CR BULK ALLOCATION in excise duty on the account balance of Tk 5 crore are
pressure. Besides, this will create a moral hazard and “As per the last five-year plan, which The finance minister also proposed a bulk welcome though.
Besides, the government should mobilise put off honest taxpayers from compliance. is supposed to be completed this year, allocation of Tk 10,000 crore to deal with And so is his proposal to impose a small rate of
the health budget is supposed to be 1.12 any special situation related to Covid-19. customs duty on onion import to encourage cultivation,
Inadequate measures for exporters Stock investors with nothing to cheer for
FROM PAGE 4 cotton imports for the upcoming year as executive director of the Policy Research FROM PAGE 4 saying the gap reduction would tax on the value of bond transactions,
The finance minister also proposed it is a vital raw material for the garment Institute. remain unchanged for listed obstruct the process of bringing good he suggested introduction of
increasing tax deductions at source sector. The finance minister went on to “If we can implement the stimulus companies at 25 per cent. companies to the stock market. withholding tax deduction on the
from 0.25 per cent to 0.50 per cent. propose a tax rebate on the import of packages, we can protect the jobs of Although stock market analysts, “We hoped that the government commission fixed by the Bangladesh
The current 0.25 per cent source tax RFID tags, which are used in garment workers. New job creation might not be bourses and market intermediaries would reduce the trading tax or Securities and Exchange Commission.
levied on exporters was initially set to be factories, industrial rakes and cutting possible if new funds are not injected,” have long been asking for widening beneficiary owner’s account fee to give This is a positive step to make the
1 per cent but was later reduced through tables. Mansur added. the tax gap to attract well-performing small investors some respite amid the bond market vibrant along with the
a statutory regulatory order (SRO). In total, the government allocated Tk The government should come up companies into the market, the pandemic. Investors will be benefitted proposal to allow undisclosed money
The reduced 12 per cent and 10 per 6,825 crore as export incentives for 37 with another Tk 5,000 crore stimulus finance minister has done just the if the steps are taken,” said Rahman. in the stock market, said Mohammed.
cent corporate tax rates for non-green different sectors in the outgoing fiscal package to help export-oriented opposite. “From the budget we got only one The investment of undisclosed
and green garment factories respectively year while it was Tk 4,000 crore in fiscal businesses pay their workers’ wages in “The shrink in the corporate tax gap thing: a right direction to develop the money may boost the cash-flow in
should remain the same for the next 2018-19. July, August and September, said Saiful would discourage well-performing bond market. Other than that, there is the market. However, there is doubt
two years, Kamal said. “We expected that the 5 per cent tax Islam, president of the Leathergoods companies to get listed whereas we nothing for the stock investors.” whether the money would come to
The Export Development Fund was on cash incentives would be waived,” and Footwear Manufacturer & Exporter’s have long been trying to bring them To make the bond market the market at the end, he said.
topped up from $3.50 billion to $5 said Rubana Huq, president of the Association of Bangladesh. in,” said Khairul Bashar Abu Taher attractive by abolishing the existing An insignificant amount of money
billion in the new budget while VAT on Bangladesh Garment Manufacturers Mohammad Ali Khokon, president Mohammed, chief executive officer of provision of deduction of source tax was invested in the stock market
the sale of synthetic and polyester yarn and Exporters Association (BGMEA), in of Bangladesh Textile Mills Association, MTB Capital. upfront on interest and discount earlier when such an opportunity was
was set at Tk 6 per kilogramme. her reaction to the budget. demanded a 10 per cent increase in cash “The government could have on bonds, the finance minister given in 2009-10, Mohammed added.
Meanwhile, VAT on yarn meant for She welcomed the budget but urged incentives for using local yarn instead of reduced the rate for listed companies proposed introducing the provision The finance minister said anyone
domestic markets was reduced by Tk 1 the government to continue charging the proposed 4 per cent for at least the in the same manner.” of the tax at the time of payment of can invest their undisclosed money
per kg. 0.25 per cent VAT at source for the next six months. Md Masudur Rahman, a stock interest and discount on bonds. in the stock market by paying a 10 per
At present, local yarn buyers have to next five years instead of the proposed Bangladesh’s domestic market investor and a mid-level official of a In addition, instead of the present cent tax and the lock-in period will be
pay Tk 4 per kg as VAT but according to 0.50 per cent. Huq also lauded the for garment products suffered losses corporate house, echoed the same, provision of deducting withholding three years.
the new proposal, they will have to pay government’s intention to continue the of about Tk 20,000 crore due to the
Tk 3 per kg in the upcoming fiscal year.
Kamal also proposed that VAT should
additional 1 per cent cash incentive for
the garment sector.
Covid-19 outbreak while export-oriented
manufacturers lost around $1.4 billion Poor power demand, poor allocation
be waived altogether on the production The BGMEA president also sought following work order cancellations by FROM PAGE 4 further following the outbreak, but million cubic feet of gas per day
of personal protective equipment (PPE) the government’s cooperation for international brands and retailers. “The government should prioritise the subsidy allocations for power and (mmcfd), which was 1,744 mmcfd in
such as face masks. launching e-commerce platforms like Mohammad Hatem, vice president on expenditure, cut subsidies, focus energy sectors -- Tk 9,500 crore and Tk 2009.
PPE has become a major export Amazon or Alibaba. of Bangladesh Knitwear Manufacturers on transmission and distribution 9,000 crore respectively -- remained A major portion of the development
item for Bangladesh in the past few The government should allocate and Exporters Association, urged the network, and provide some immediate unchanged in the proposed budget. expenditure planned for the power
months due to the ongoing coronavirus more funds for micro, cottage and small government to immediately implement benefit to the economy through a cut Another way to get rid of the sector would involve import. But
pandemic. enterprises as these sectors generate the stimulus packages to help bring in the fuel prices,” said Zahid Hussain, rental power plants is not to renew spending foreign currencies in this
As always, no taxes will be levied on employment, said Ahsan H Mansur, work orders back into the country. former lead economist at the World the contracts that would be up for way is not consistent with the current
Bank in Dhaka. renewal in the upcoming fiscal year, situation, said Prof M Shamsul Alam,
Returnees in distress
FROM PAGE 4 in economy. That means construction Department of Economics and Social
It would help the government get
rid of the capacity charges, what he sees
no reason to continue as the country
Zahid said.
“The government should explore
ways to make savings from the
energy adviser of the Consumers
Association Bangladesh.
To meet the budget deficit, the
had an excess power generation in FY subsidies without raising electricity government increased the subsidies
Experts say the amounts are companies may cut jobs. Sciences in BRAC University. 2018-19 by using only 43 percent of prices. Any power price increase would and electricity tariff in the past, said
inadequate and also that the Probashi Abu Hayat, a migration researcher EXPERT SUGGESTIONS its capacity. hurt everybody, from the middle Prof Shamsul.
Kalyan Bank has not been proved to be in Malaysia, said he knows a lot of He said employment of returnee Even before the pandemic, the class to businesses and industries to “In the past, we were able to absorb
efficient enough in loan management Bangladeshis with no job prospects migrants will be a real challenge. government used to pay Tk 9,000 households.” the additional burden because we
and socio-economic reintegration of in Malaysia who are waiting to return They find it very difficult to set up crore as capacity charges to the rental The gas sector has not been able to had the financial capability. Now,
returnee migrants. home. They are just waiting for a business at home. They need re- power plants that remained idle due match the success of the power sector, we neither have the capacity to pay
Prof KAS Murshid, director the international flights to resume skilling and easy loans. More than to the low demand of electricity, largely because of fast-depleting taxes nor the bills for using gas and
general of the Bangladesh Institute of operation. those, they need a good condition for causing a hike of electricity price for domestic reserves and a lack of electricity.”
Development Studies, said many of “Those who are contractual day doing business, but how that could be consumers, said Ohio-based Institute major discoveries. The situation has At least Tk 10,000 crore can be saved
the returnees will be totally penniless workers and undocumented are ensured is the real question. for Energy Economics and Financial prompted the government to shift its in the power sector and Tk 12,000 crore
or even in debt. Providing them with facing the real brunt,” he said. Prof Nurul Islam, former director Analysis in a study recently. focus on liquefied natural gas (LNG). in the gas sector by keeping a tight rein
economic and social rehabilitation A Bangladesh embassy official in at the BMET, said authorities must The demand for power has fallen Bangladesh now produces 3,051 on unnecessary expenditures, he said.
will be a very important task. Saudi Arabia too said the same. “Saudi have a robust database of the returnee
Bangladeshi migrants face more Arabia has been very strict over the migrants, and maintain their contacts
risks of slipping into poverty because last two years about undocumented and skillsets. Based on that, they
they pay hefty amounts for migration,
experts said.
Khurshid suggested that returnee
foreign workers. They have been
deporting such migrants in large
numbers,” he said.
could be re-skilled and provided with
easy loans for small businesses. No lessons learnt
“Loan itself is not enough. They
migrants be incorporated into
the main stimulus or safety net
With the economy slowing down
amid drop in oil prices, undocumented
should be equipped with business
strategies and modern technical
from recessions
programme for the initial months. At and daily contractual migrants may know-hows of businesses and FROM PAGE 4
the same time, their skills should also find it difficult to find jobs even after marketing,” he said. and acquisition policy in his budget speech.
be updated based on their needs so the pandemic is over, he said. Prof ATM Nurul Amin said there The government should have drawn up a policy on how
they can find jobs at home or abroad According to recruiting businesses should be strong institutions with to revise the existing bankruptcy act as many companies
or can start small business with loans. and migration experts, 15-20 percent trusted individuals to make sure would be in dire straits in the days ahead due to the fallout.
WHY THE WORRY of over one crore Bangladeshi there is an effective loan management Lehman Brothers, a major American investment bank,
According to the civil aviation migrants are undocumented. system for the migrants to facilitate had collapsed on September 15, 2007, which deepened the
ministry, about 7 lakh Bangladeshis On the other hand, new jobs will their businesses. then financial crisis later to a great extent.
returned from abroad between also see a sharp decline. In January and He said that agriculture is the A good number of banks also faced the same dire
January and March this year. How February, 1.29 lakh workers had left backbone of the country’s economy, consequence during the previous economic slick.
many of these are migrant workers for overseas jobs. Recruiting agencies and the pandemic has again proved “A vested quarter comprising of some private bank
has not been separately counted yet. said some 1.5 lakh Bangladeshis, who farming is the saviour. With exports directors is ruling the roost. They have swindled money
The Bureau of Manpower had visas, could not fly abroad for sliding, boosting agriculture, agro- by way of giving loans to each other through what can be
Employment and Training (BMET) jobs in March and April. There’s sheer industries, small and medium termed mutual understanding,” said Mansur, also a former
says about 11,000 Bangladeshi uncertainty if they could fly even after enterprises is the need of the day. official of the International Monetary Fund.
migrants were repatriated between the flights are in operation. Prof Syeda Rozana Rashid of Besides, the Banks Companies Act 1991 has allowed
April 1 and June 8, while the foreign Economists say every year some 20 Dhaka University said the demand four members of a family to become directors.
ministry said nearly 25,000 more will lakh jobseekers enter the job market, for health professionals -- doctors, Banks have been become a family asset due to the
be repatriated in the coming weeks. and nearly 40 percent of them (about nurses, medical technologists and provision of the act, Mansur said.
Officials of the Bangladesh 7 lakh) go abroad. equipment technicians -- will be of The finance minister should have addressed the issues
embassies concerned said jobs in “There’s already joblessness within high demand globally. to protect banks from the ongoing precarious situation, he
the construction and services sectors the country. We can see fresh job cuts “We should focus on this area now said, adding that the corporate tax for the banking sector
have been affected the most during amid the coronavirus pandemic. It as we talk of building skills, finding should have been reduced given the declining trend of
the pandemic. With oil prices seeing will be very difficult to manage the markets and ensuring migration profitability in lenders. But the issue has not been taken
a radical drop, Middle Eastern unemployment problem,” said Prof governance,” said Rozana, a migration into consideration as well, Mansur added.
countries will have a very slow growth ATM Nurul Amin, chairman of the researcher. Salehuddin Ahmed, a former BB governor, echoed the
same, saying revising the bankruptcy act and the M&A
policy were highly important considering the economy is
wrought by the coronavirus pandemic.
‘Robber’ killed in ‘gunfight’ Stimulus packages taken both by the government and
the central bank will not be effective if the financial health
of the banks cannot be improved, he said.
STAFF CORRESPONDENT, Ctg robbery and a patrol team of Rab in the “The finance minister is highly cruel to the country’s
dead of the night,” said the Rab official. banking sector. He has already given a set of undue facilities
An alleged robber was killed in a gunfight “The 32-years old unidentified robber was to the habitual defaulters,” said Khondkar Ibrahim Khaled,
with members of Rapid Action Battalion bullet-hit while other criminals managed to a former deputy governor of the central bank.
(Rab-7) at Mirsarai upazila of Chattogram escape. He was declared dead after being The government should turn against the habitual
early yesterday. rushed to an upazila health complex.” defaulters as well in the interest of banks and the financial
However, identity of the deceased could Two firearms, eight rounds of bullets sector as a whole, he added.
not be known, said Rab officials. and sharp weapons were recovered from
Rab-7 media wing’s Assistant the spot, said the Rab official. The body
Superintendent of Police Mahmudul was sent to Chattogram Medical College
Hasan Mamun said the incident took place Hospital (CMCH) morgue for autopsy.
at Boro Takia area on Dhaka-Chattogram Earlier, Rab arrested three alleged
Highway. robbers in possession of firearms from
“The gunfight took place between a Dhaka-Chattogram Highway in Sitakunda
group of robbers who gathered to commit upazila’s on Wednesday.
TREATMENT OF JUDGES
Five officials
of SC asked
to remain on
duty round
the clock
STAFF CORRESPONDENT
Petition seeks
lockdown of
Sheer disregard for public health
entire Dhaka Anti-tobacco campaign group Progga says in
STAFF CORRESPONDENT their budget reaction
STAFF CORRESPONDENT on this tier has been increased to 57 percent
A Supreme Court lawyer
yesterday filed a writ from 55 percent.
Eleven thousand crore taka in additional
petition with the High “If the proposed budget is adopted,
revenues could have been raised from
Court, seeking its directive it will eventually reduce the real price
tobacco sector if the proposed tax and price
on the government to of cigarettes and encourage its use,” the
measures from the Ministry of Health and
immediately put entire statement said.
Family Welfare were adopted, anti-tobacco
Dhaka city in lockdown campaigning organisation Progga said in For bidi (local tobacco product), the
excluding parliament an instant budget reaction yesterday. increase per stick is negligible 16 paisa. For
functions and other “The proposed budget not only ignored smokeless tobacco products, the price per
necessary operations for at WHO’s repeated health warnings but 10 grams of jarda has increased by Tk 10,
least two weeks, to contain also showed sheer indifference to the setting the price at Tk 40, which is indeed a
the coronavirus pandemic. opportunity of generating additional satisfactory move, added the press release.
Advocate Mahbubul revenues and saving lives. The four- However, the increase is only Tk 5 per
Islam submitted the tier pricing of cigarettes has been kept 10g of gul. As a result, the use of such
petition through email, untouched, thus continuing the option products among women and the poor will
requesting the HC to for consumers to just switch to a cheaper not see any major decrease.
order authorities of the tier. This will also encourage the youth to Overall, this proposed budget will have
government to ensure take up smoking,” the group said in a press zero effect in generating additional revenue,
that city dwellers stay statement. preventing premature deaths and curbing
at home and to provide The price for 10 sticks of low-tier cigarettes spread of coronavirus, the statement also
food and medicine to has been increased by only Tk 2, setting the said.
the poor through local price at Tk 39, which means the hike per stick The 37.8 million adults who consume
representatives. will be only 20 paisa or 5.4 percent. Such tobacco and 41 million people who fall
Petitioner’s lawyer increase is very negligible considering the victim to secondhand smoke will remain
Advocate Manzill Murshid fact that during the same time the National in grave health risk. Above all, the sheer
told The Daily Star that the Income Per Capita (Nominal) has increased disregard for public health as evident
Roadside vendors are slowly coming back to the streets and alleys of the capital, after months of halted business. HC may hold hearing on by 11.60 percent. It should be noted that 72 in this proposed budget will hinder the
Seeing this man preparing fried food in Siddik Bazar must have been a relief for many low-income people living the writ petition virtually percent of all cigarette smokers are users of realisation of a tobacco-free Bangladesh by
on Sunday. low-tier products. The supplementary duty 2040, Progga said in their reaction.
and working nearby, for who this is the only snack they can afford. PHOTO: PRABIR DAS
Extraordinary times Some are more equal to govt escalation” that threatens
the Israeli-Palestinian peace
process, the Organisation
FROM PAGE 2
FROM PAGE 2 the 25, eight doctors got themselves Bangladesh, at least for a year or two.
the medium-term macro-framework Kamal deserved big kudos for infected and met the death while of Islamic Cooperation has
effectiveness of various useful policy But the worries and uncertainties
mentions that the estimated share of protecting public employees treating patients at private hospitals. said. Following a virtual
initiatives of the government. to grapple with are only for the 75
domestic private investment in GDP in the financially four months into the crisis. Yet, they weren’t considered for meeting of OIC foreign
lakh people who are serving on the
The convention of preparing outgoing year is only 12.7 per cent, which Proper medicare is understood to be compensation, just because they ministers, the pan-Islamic
other side of the divide, in the private
government’s income-expenditure will be more than double (25.3 per cent of off the list under this circumstance served the people from the other side body said it “warns against
sector. It should have been a huge
balance based on numbers provided by GDP) in 2020-21! One wonders whether and with this sorry health system; but of the line of divide. the dangerous intention
obligation for the government, the
the Revised Budget has given us a set there is an estimation error or this exposes he certainly did more than he could There are another group of of Israel”. Israel intends
finance minister to be precise, to take
of inflated benchmarks (2019-20) and the dire state of private investment. Same have to ensure financial security for front-liners who remained in the to annex West Bank
extra care of the 22 lakh tax-payers, of
unreal target figures for 2020-21. This concern may be raised regarding the GDP 14 lakh government employees (Tk background of all the news they settlements and the Jordan
whom 86 percent is from the private
particularly true for the revenue collection 5,125cr in salaries and benefits a generated for the nation, exposing Valley, as proposed by US
growth projection of 8.2 per cent for the sector.
amount which has to be one and a half month) and over 6,5 lakh pensioners themselves daily to pandemic President Donald Trump,
next year. Isn’t it very unfair of the government
times more than the actual collection in (Tk 1,917cr a month). risks. They kept the people and the with initial steps slated to
The pandemic related measures No austerity was called into to shield the financial security of only
2019-20. This suggests that the revealed government informed, but went on begin from July 1.
mentioned in the budget speech are practice. Rather, he was found to be the public employees, of whom only
budget deficit may very well be much to leave their families in an uncertain
essentially an extension of the already ever obliging to the government’s 3 lakh are tax-payers. But those who Turkey snubs Egypt’s
future. Seven journalists, four due to
more than the projected 6 percent of the existing schemes of the government and additional financial response to pay tax, working in the private sector
coronavirus disease and three with Libya peace initiative
GDP, if the full public expenditure outlay have locked-in the stimulus packages contagion compensation for public or running private businesses, are left
symptoms, died so far and 281 ended
has to hold. announced earlier. Given the existing employees: up to Tk 50 lakh for death up with infection. No government in a quagmire. They’re the ones who AFP, Istanbul
The proposed sources of financing of rigidities in revenue and development and up to Tk 10 lakh for infection. compensation reached their families; would face the job-cut, salary-cut or
the fiscal deficit is also worrying. About The police, the other frontline heroes and payment of overdue salaries go out of the businesses. Turkey yesterday rejected
expenditure structures, the allocative
45 per cent of this deficit will be financed beside medicare staff in our fight wasn’t made by some of their No clear outline could be made an Egyptian peace
priorities changed only at the margin. The
through borrowing from a fragile banking against the contagion, would get an employers even after their deaths. of the budget speech and documents initiative in Libya after a
reform measures reiterated are run of the about Kamal’s tab on the employment
sector and may crowd out the ailing additional compensation up to Tk 15 Some respite, however, came from an series of military victories
mill. protection or creation, incentive or by forces loyal to Tripoli
private sector. lakh from the fund of IGP (Inspector unexpected source, with the chief of
I am afraid that the budget has shied General of Police). support for private sector employers against strongman Khalifa
The budget needs to be read along with police offering Tk one lakh for each
away from doing a hard introspection and We all are grateful to the services of to retain jobs and unemployment Haftar and said it favoured
the (incomplete) closing assessment of the of the families from his personal fund.
scoping of the evolving landscape. This our frontline warriors-- the doctors, The economy is reeling from the benefits. Would not these tax-payers a binding ceasefire under
Seventh Five Year Plan (2015-20), which has deprived it from identifying innovative nurses and police; and the highest get any COVID-19 respite from the
shockwaves of the pandemic, which UN auspices. Egypt and
shows that tax-GDP ratio is stuck at 2010 sources of finance, imaginative spending possible compensation is what a good government? If the tax-payers don’t get United Arab Emirates
is going to change the landscape of
level and the public expenditure ratio programme and taking a “whole of society” government must make available businesses and job opportunities protection in their crisis, why would support Haftar against
has improved marginally. But the most approach in dealing with the scourge of to them. Our government is doing for good. How the businesses would they pay the tax at the first place? the UN-recognised
miserable situation had been in the area of COVID19. Regrettably, it ended up being it, but only for those who serve the restart and recover from the loss is a A crisis like this demanded an Government of National
private investment. an ordinary budget in an extraordinary government. billion-dollar question. So, bonus- out-of-the-box, holistic policy from Accord (GNA) which is
The issue of private investment time. 25 doctors are among over 1,000 cut, salary-cut, privilege-cut and job- Kamal. And, it wasn’t delivered, at backed by Turkey.
becomes quite vexing when we note that dead in coronavirus disease so far. Of cut are expected to be the Issues in least not yet.
DHAKA FRIDAY JUNE 12, 2020, JAISHTHA 29, 1427 BS
staryouth@thedailystar.net 9
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SUMAIYA KABIR the parents and their kids know about the
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only carries a supportive learning environ- Majority of the students of the institu- motivated individuals skilled in areas relevant to WBG
ment but also a design-thinking approach tion come from families of factory workers, technical/operations such as economics, finance,
to understand the real impact of education. who either are suffering from health risks education, public health, social sciences, engineering,
AHF’s aim is to extend this model from Founder and Chairperson Azwa Nayeem (5-L) with the teachers of the Alokito Hridoy or damaged livelihoods due to the corona- urban planning, agriculture, natural resources to name
their own school and government primary School virus outbreak. AHF has stood beside these a few.
schools to eventually all other mediums, each other through learning and sharing BDT 20,000 families not only academically, but also DEADLINE: June 30, 2020 | Miscellaneous
and fuel change at a systemic level. resources online, from home. Soon, it will AHF has also been closely working emotionally and financially. The foundation
In attempting to reinvent the education also include the option to explore job and with the ICT Ministry and their Access to initiated a virtual discussion series as well,
system of Bangladesh, AHF recognises that
it is crucial for educators to be empowered
as well. “Every teacher has some unique
other growth opportunities.
The foundation recently announced
an idea challenge, sponsored by Daraz, to
Information division team to create a digital
education platform that redirects to the
foundation’s website as well as that of 35
on reimagining education with COVID-19
and beyond. In the series, policymakers and
education experts come together online to
2020 Money Trail Grants
techniques they apply in their classroom.
I feel that the magic they work there is not
inspire teachers to think creatively and con-
tribute towards minimising the challenges
other esteemed organisations. Subsequent-
ly, it acts as a repository for all academic
explore what challenges the aftermath of the
pandemic will bring, and their innovative for African, Asian and
highlighted enough,” says Founder and rising from the education disruption we are resources. It hosts quizzes and lessons solutions.
Chairperson Azwa Nayeem. “Our aim is to
develop the teachers as catalysts of change,
currently facing. It is a great opportunity for
the teachers to assume the role of leadership
through video content and e-workbooks.
This way, everyone involved can have an
“We want to stir up the right conversa-
tions about all the issues that need to be
European Journalists
and teaching to be the most sought after in these unprecedented times. Any teach- inclusive learning and self-assessment expe- addressed, starting from the bottom to the In Money Trail, Journalismfund.eu offers working
and respected profession.” er may apply, and will be judged on how rience. The core philosophy behind many top of the system, as everyone is in a very grants for mixed teams of African, Asian, and European
In line with that thought, AHF recently much their idea ensures equity, and whether of their projects is that the quality education receptive mood right now. Everyone wants journalists to investigate cross-border illicit financial
launched the ‘Alokito Teachers’ web plat- it is applicable in all schools and inclusive they are trying to provide should include an to do something, and there is no better time flows, tax abuse, and corruption in Africa, Asia, and
form, where these teachers from different of all types of students or not. The winner active partnership with the children’s par- than now to redefine our education system,” Europe.
parts of Bangladesh can stay connected to will be awarded with a gift voucher worth ents as well. “We want to ensure that both concludes Azwa. DEADLINE: September 14, 2020 | Grants
T
HE finance minister on Thursday presented the 49th
out in pain and agony. George called for his for review every year by an independent
annual budget of Tk 5,68,000 crore, up by a slight
mother and implored, “I can’t breathe,” but (and upright) authority; and 4) For
8.6 percent from the previous budget of Tk 5,23,190
there was no let-up. Shameful? The word perpetrators, abettors, and those involved
crore. These are our initial reactions to it and more detailed
does not carry the weight for what was on but disengaged, levels of consequences
analysis will follow.
public display that day. But what word must be determined including suspension,
Amidst an unprecedented global pandemic, it is
would? Cruelty, ruthlessness, inhumanity, stopping pay raises, stopping promotions
unsurprising to see only a mild increase in the size of the for extended periods, removal from the
malice, mercilessness, heartlessness?
budget, as concerns over government revenue continue to Bystanders watched, some fervently force, incarceration, etc.
linger. The revenue collection target for the coming fiscal appealed to the policeman to let go, and The above set of recommendations
year has been set at Tk 3,78,000 crore, which is nearly the luckily, someone videotaped the episode represent a tall order. I suggest it as a basis
same as last year’s target of Tk 3,77,810 crore. The National (otherwise the world would not know, for future steps towards an ideal world.
Board of Revenue (NBR) has been tasked to collect Tk and George’s departure from a violent and Different countries may already have some
3,30,000 crore of the amount, leaving the non-NBR revenue hateful world would go unnoticed as in combination of the above provisions
collection target at Tk 15,000 crore and non-tax revenue many previous cases). on their books. Whether they are being
collection target at Tk 33,000 crore. Since the episode, a revolt was born implemented is for the public to follow up
The NBR will have its work cut out to reach this target, out of revulsion. A global resolve is now on and affirm. Where gaps exist, they must
especially since the tax-free income limit has been increased taking shape to bring a stop to this kind be addressed.
to Tk 3,00,000 from Tk 2,50,000 in the new budget, of atrocity. Millions (especially in the A review of bad decisions “of the past”
which we wholeheartedly welcome. The budget further developed world)—black, white, brown, that exonerated the crimes of wayward
proposes reducing the minimum tax rate from 10 percent and all shades—marched in unison as their policemen will be needed periodically to
to 5 percent, and we again agree with this. However, the numbers swelled. It must have crossed a rectify their wrongdoings. It will also help
proposal to bring down the maximum tax rate from zillion minds that unless police brutality bring closure to many families suffering
30 percent to 25 percent is something that we find is rooted out, it could come back to haunt incomprehensible loss and injustice in
questionable, especially given the tremendous suffering the them personally. silence.
poor have been enduring during the coronavirus-induced To be sure, the violence committed was The pressure to change brutal police
lockdown, which has already increased inequality. not an isolated act. Just Google “police tactics must be sustained across the capitals
It is particularly due to this reason that we were expecting brutality” or search YouTube across the of the world. Those who are entrusted with
to see a substantial increase in the allocation for social world—South East Asia, Middle East, protecting life, liberty, property, speech,
safety net programmes, which has been set at Tk 95,574
The pressure to change brutal police tactics must SOURCE:
Africa, South America, Europe—and REUTERS FILE PHOTO and human values, and paid from the
crore—up from Tk 81,865 crore last year. Despite the fact you’ll see for yourself. Examples are not
be sustained across the capitals of the world.
coffers of the taxpayer, must understand
that this amounts to 3.01 percent of GDP, if civil pension is reporters, coroners, medical personnel, and raised, all subduing instruments must be the consequences of their action.
excluded from the social safety net, then it would be around relevant others, they must feel protected for lowered; 4) Evidence-gathering instruments Oppressive tactics and injustice should not
1.5-1.6 percent of total GDP—which is extremely low. their wrongdoings and emboldened that must be used during a police engagement. be the way of the law enforcers. The public
Allocation for education too has remained subpar. Change will come they can do no wrong. How else can they Body cameras or similar (locally must feel safe in their presence and not
Despite education being dealt a major setback in recent
months, the government has kept the allocation to
when everyone, across display such impunity to “publicly” execute
someone? The audacity of power, protected
engineered) devices are recommended,
otherwise there is only one version of
run the other way instinctively. Trust in the
policemen must be revived when they are
this sector almost unchanged in terms of the size and the world, joins a by a network of shameless collaborators, the truth; 5) Duty to intervene (on-duty seen as friend, not foe. Periodic surveys of
percentage of Gross Domestic Product (GDP)—at 2.09 makes such heinous acts possible. policemen must be able to stop others in
percent of GDP—whereas UNESCO suggests it should be movement of this However, painting all policemen as the team from using excessive force); 6)
public perceptions can be instrumental in
this regard.
6 percent. magnitude to demand wicked would be inconsiderate and Require comprehensive reporting within Change will come when everyone,
It has been proposed that the health allocation be utterly out of place. If that were the case, a few hours of the incident when force is across the world, joins a movement of this
increased from Tk 25,732 crore in the last fiscal year to change. A big part of we would be living in a reign of terror of used against someone. This is to diminish magnitude to demand change. A big part
Tk 29,247 crore in the new budget. A lump sum of Tk unfathomable magnitude. Respect must and eradicate report doctoring/tampering;
10,000 crore has also been proposed to fulfil emergency the desired change be given where it is due for those who take and 7) Require proper selection, training,
of the desired change must also come from
within the police force and the nexus that
requirements in response to the ongoing Covid-19
outbreak. However, having witnessed the appalling
must also come from their job seriously and protect society from motivating, and evaluation of the police allows police brutality to run unchecked.
its other deep and diverse evils. force entrusted with the mission to protect Will the present upheaval bring fresh
shortcomings of the sector in the face of this crisis, within the police force So, where do we go from here? Two the public. change to police tactics globally? The world
we cannot help but feel that this increase is woefully things are imperative: We must use (new) The incentive structures must also
inadequate. Our healthcare sector has proven itself to be in and the nexus that laws and we must change the incentive be changed and consider: 1) Placing
is watching. The world is waiting.
a shambles, and the only way to improve it by a degree that allows police brutality structures. The task ahead is indeed a names of errant policemen in a national Syed Saad Andaleeb is Distinguished Professor
will make some difference is through massive government daunting one but it needs to begin. (computerised) registry to restrict their Emeritus, Pennsylvania State University; former
investment. to run unchecked. Several laws must be considered with access to jobs and other facilities if Vice Chancellor, BRAC University; and Distinguished
Visiting Professor, IBA, University of Dhaka.
We call on the government to urgently recognise this, utmost seriousness, for all nations of the removed from the force for egregious Email: ssa4@psu.edu
and to ensure that the quality of the expenditure in the
healthcare sector in particular, but in other sectors too, is
bumped up, as one of the biggest challenges we have right
now with all the constraints we face is to get good value for
money—something we have historically been bad at doing.
WORLD DAY AGAINST CHILD LABOUR
Budget allocations this year have to be more precise and
there is even less room for wastage and mistakes when it
comes to formulating the new budget, as we struggle to
recover from this crisis. Among other matters, it is in this
regard that the proposed budget falls most short.
Covid-19, cheaper labour and the
Ensure oxygen supply endless miseries of our children
equipment in all C
HILDREN adolescence lead to a lifetime of mental amended the Labour Act 2013, the miseries broadest sense of the word, including
A CLOSER are our health challenges,” the blog further of Child Domestic Workers remain unoccupied dwellings, wasteland, etc.)
LOOK most suggests. unaddressed. The policymakers’ inability has become her or his habitual abode
district hospitals precious assets—
for some, in a
While the possibility of a meteoric
rise in forced child labour is a concern
to align the discrepancy of the age bar for
employability of these little workers in the
and/or sources of livelihood, and who
is inadequately protected, supervised or
very literal sense. for the world community, for countries DWPWP and the Labour Act—according directed by responsible adults”—remain
Immediately arrange for ICU beds For money, for like Bangladesh—where, according to to DWPWP, the minimum age is set at 12, the most vulnerable group.
I
T is most unfortunate that three months into the sustenance, for the UK-based Institute of Development whereas as per Labour Act, the minimum These children are often involved in
Covid-19 outbreak in Bangladesh, our district hospitals survival, many Studies (IDS), around 87 percent of the age is 14—is a manifestation of their rag-picking, begging and other such tasks
could not yet take the required preparations to provide TASNEEM TAYEB parents unable to population are involved in the informal apathy towards this situation. and miserably exploited by the people
treatment to Covid-19 patients. The hospitals are not bear poverty end economy and around 1.2 million children Then, there are boys and girls who who employ them. Those involved in rag-
equipped to treat those in critical condition with breathing up pushing their precious little ones into are already involved in the “worst forms work in various other segments of picking are the most vulnerable, because
difficulties—they have neither any oxygen supply system the wide open in search of subsistence. of child labour”—the challenges ahead the informal economy: in factories, they are prone to getting infected with
nor ventilators, as a recent study by the DGHS found. While Children as young as three-four end up in are manifold. workshops, shops, tanneries and other various infectious and communicable
most of the hospitals have oxygen cylinders, they lack the the informal sector, doing menial jobs, for The Child Domestic Workers (CDW) small jobs. These children are not only diseases, thanks to the mismanagement
vital equipment needed to ensure the supply of oxygen. a tiny sum of money. remain a major problem of the informal often exposed to hazardous materials of medical waste. Especially in the current
Moreover, 47 out of the 64 districts do not have ICU According to The Alliance for Child employment sector. From toddlers to and chemicals, but they also fail to situation, these children are at greater risk
facilities, according to a health ministry database. Protection in Humanitarian Action juveniles, girls and boys of all ages are access basic necessities such as nutrition, of being infected with Covid-19 because
In the absence of ICU and oxygen supply facilities in the (“The Alliance”)—a global network of the way we handle medical waste,
district hospitals, critically ill Covid-19 patients now have of operational agencies, academic especially outside the capital.
to travel to the divisional headquarters to get treatment, institutions, policymakers, donors And with the nation’s economic
where the number of ICU beds is also limited. According and practitioners that facilitates inter- wheels slowing down due to Covid-19,
to DGHS, there are only 329 ICU beds dedicated to agency technical collaboration on these children are at a greater risk of
coronavirus patients across the country, and 148 of them child protection in all humanitarian exploitation by unscrupulous employers.
are in Dhaka city. contexts—152 million children Increasing poverty, loss of income, lack
Inadequate testing facilities are also another major worldwide are involved in child labour of jobs, and death of wage earners in
concern and have made it difficult to prevent the spread of and nearly half of them, around 73 the family are rending many of these
infection and challenged the success of lockdowns. In this million, are engaged in hazardous jobs. children—born into poverty—easy prey
bleak scenario, there are examples of innovative initiatives Covid-19 is only going to exacerbate the for employers. With the equilibrium
to tackle the pandemic. One such initiative has been taken problem. A blog posted by Unicef suggests in the demand-supply equation of
by the Kalihati upazila administration, Tangail. According that, “As global poverty rises, so too will available child labour tilting towards the
to a report published by The Daily Star yesterday, the the prevalence of child labour. Increased employers, it is the little children who will
upazila administration has invested in a specialised vehicle parental mortality due to Covid-19 will be the collateral damage.
that is well-equipped to collect Covid-19 test samples and is force children into child labour, including The government must take appropriate
now going to the doorsteps of possible patients. Operating the worst forms such as work that and effective economic, social and
under the upazila health complex, the vehicle can collect 50 harms the health and safety of children. legal measures to protect the children
samples every day. Temporary school closures may have from becoming the “other victims”
We think this brilliant initiative should be emulated by permanent implications for the poorest of Covid-19. The government, while
other upazlia administrations across the country, which and most vulnerable. Limited budgets expanding the social safety schemes to
will not only relieve possible Covid-19 patients of the and reductions in services for families and cover a wider group of people, can also
struggle to get tested, but also will help reduce the risk of children will compound the effects of the expand its education programmes to
further spreading the transmission. This should also be a health, economic, and social crisis.” properly accommodate the street children,
lesson for us that in such trying times, we cannot just wait Even in case of a short-lived economic A 12-year-old boy and his four-month-old brother sleep on the central reservation of giving them a better chance at life. The
for the government’s intervention to provide us with all crisis, “the consequences of this increase a street near Kamalapur Internal Container Depot in Dhaka. Their speech-impaired policies dealing with forced child labour
the facilities we need. We also need to come forward, each in child labour can last generations.
mother left them there to look for food amid the Covid-19 lockdown, sometime in should also be implemented strongly so
from our own position, with our own resources, to find We know that children who enter child that unscrupulous people are not able to
innovative solutions during a crisis. labour are unlikely to stop working March 2020. PHOTO: MAHBUBUR RAHMAN KHAN
exploit our children. Crafting narratives
The spread of Covid-19 across the country has exposed if their economic situation improves. employed in various households across the healthcare and education. And the wages
just one day a year—on the occasion of
the grim picture of our healthcare system. The lack of Instead, they will continue to experience country as domestic workers. And these they are paid are more often than not
World Day Against Child Labour—is easy;
preparation of the district and upazila level hospitals the consequences of child labour— children are subjected to all forms of abuse meagre and insufficient. The lucky ones
what’s not is the political will and its
to fight the pandemic is very worrying. While we would like less education overall and worse and exploitation, from meagre wages and can enrol for afternoon, evening or even
strong demonstration to truly eliminate
request the health ministry and the DGHS to immediately employment opportunities—when they inhumane living conditions to sexual at times weekend classes, and end up with
this socio-economic menace.
provide all the district hospitals with the life-saving are adults and start families of their own. assault by employers and battery, leading a basic diploma in polytechnics or a BA
Our children need our attention,
equipment such as ventilators and oxygen supply system, We also know that the younger children to death in some cases. These are some of pass course, but their prospect of a better,
especially in this unprecedented juncture
we would also request the hospital management to be are when they start working, the more the myriad problems facing these children. prosperous future remains remote.
of life.
proactive and play their part in getting their facilities ready likely they will experience chronic health Despite the government having formed The street children—defined by Unicef
for Covid-19 patients. Only through our combined efforts issues as adults. Moreover, we have the Domestic Workers Protection and as “any girl or boy who has not reached Tasneem Tayeb is a columnist for The Daily Star.
do we stand a chance to overcome this crisis. ample evidence that stress and trauma in Welfare Policy (DWPWP) 2015 and adulthood, for whom the street (in the Her Twitter handle is: @TayebTasneem
DHAKA FRIDAY JUNE 12, 2020, JAISHTHA 29, 1427 BS OPINION 11
Zafrullah
FROM PAGE 16
No break for middle class Bangladesh
FROM PAGE 16
Not so good news
FROM PAGE 3 to pay taxes, the number of taxpayers FROM PAGE 3 The finance minister allocated Tk
Dr Zafrullah tested positive for for the first three slabs have been set at 20 were from Dhaka, seven from Finance Minister AHM Mustafa Kamal
is only 20-22 lakh.” 66,400 crore for education sector for
Covid-19 on May 25 through a test five, 10 and 15 percent -- down from He also said, “VAT is the largest Chattogram, three from Sylhet, four did not give any specific guidelines on 2020-21. The amount makes up 11.69
using rapid testing kit-- GR Rapid 10, 15 and 20 percent respectively. contributor to the NBR [National from Rajshahi, two from Barishal and how the major challenges of creating percent of the total outlay and its share
Dot Blot, which was invented by the As the government targets the ultra Board of Revenue] tax revenue.” one was from Rangpur. jobs will be resolved. He, however, in the GDP stands at 2.09 percent.
researchers at the Gonoshasthaya poor with stipends and cash transfers, Meaning, while the government They were aged between 31 and
Kendra. spoke of the initiatives that have Bangladesh has committed in the
there is nothing for those like Nabil’s fails to crack down on tax evasion 80, Prof Nasima added. already been taken.
Since then, he has been under family during an unprecedented by the rich, the economy will be According to DGHS, the number Dakar Declaration and other global
treatment at the Gonoshasthaya Nagar crisis. No unemployment benefit “We have announced a large forums to spend 6 percent of GDP
bankrolled by the middle class and of daily infections used to remain
Hospital. He has undergone plasma scheme like that in the United States, even the low-income population. stimulus package of about Tk 1,03,117 or allocate at least 20 percent of the
between 1,000 and 1,200 a month crore to fight the economic fallout
therapy thrice. no house rent assistance like in the This comes in a year when ago. From the last week of May, the national budget for education. Unesco
Later, he tested positive for United Kingdom, no universal basic consumption inequality, measured by from the coronavirus, one of the also stipulates a similar budgetary
number of cases started jumping over main objectives of which is to remove
Covid-19 in rt-PCR test at the income scheme like in Hong Kong. the Gini coefficient, is 0.35 -- up from allocation for education.
2,000. Since June 9, the country has temporary job losses by revitalising
Bangabandhu Sheikh Mujib Medical Small businessmen in rural areas 0.32 in 2016 -- according to the Centre Educationists say the government
will get microloans and high school seen over 3,000 cases daily. the economic activities,” the minister
University. for Policy Dialogue’s latest review of expenditure on education as a
graduates will receive employment the economy. Data show Bangladesh constantly said.
The 79-year old physician is ranked the 10th position from June 6 proportion of GDP has been hovering
a kidney patient and has been training under the Skills for Last month, Mosammat Sumaiya, Experts and entrepreneurs, around 2 percent for the last several
Employment Investment Program -- who runs a business doing house-calls in terms of detecting high number of however, said the government could
undergoing dialysis and also has a years, which is lower than that in
but service-providing professionals hit for beauty services, had to depend on new cases. have taken a special measure to
pre-existing lung problem. many other South Asian countries.
by the pandemic are left out. relief for the first time in her adult life. During the period, the Covid-19 address the employment problem.
For nearly three months, Dr The bulk share of the budget goes to
It seems as if middle-class families The single mother could not bear case growth factor (daily new cases
Zafrullah and a team of scientists have like Nabil’s are being told -- we have “We already have a mismatch in the salaries and operational expenditure,
the thought of running after relief / new cases on the previous day)
been working on the Gonoshasthaya nothing to give, but we’ll be taking trucks, and had been reaching out to skills and job market. Now amid the leaving little scope for ensuring a
Kendra-developed rapid coronavirus remained between 0.9 and 1. coronavirus situation, the problem
less of what you earn. people she knew to connect her with According to WHO, the growth quality education and skill human
test kit -- GR Rapid Dot Blot – trying In addition, those with personal donors personally. She received a will be more acute,” Brac University’s resource development.
to get it approved. factor between 0 and 1 indicates a Professor Emeritus Manzoor Ahmed
cars will now have to pay 15 percent month’s worth of food supplies from With this little education budget
He has been calling for emergency decline; when it is above 1 it signals said.
(up from 10) in duties for services a charitable organisation. country will not be able to reap
authorisation of the kit for large- by the Bangladesh Road Transport an increase, and if is persistently “Employment creation is now
“I used to earn around Tk 25,000 the benefit from the demographic
scale tests and isolation of the new Authority. per month but since the pandemic, above 1 this could signify exponential stagnant. Opportunities of job in
growth. dividend, they added.
coronavirus patients -- the best way to Nor is there any reduction in nobody wants to avail salon informal and many formal sectors Demographic dividend is the
check its spread. Value Added Tax (VAT) of significant services because of social distancing On April 3, the growth factor are shrinking in home and abroad.
for Covid-19 cases in Bangladesh economic growth potential that can
consumer goods like infant milk and guidelines,” said Sumaiya. Many migrant workers are returning
oil that were hiked last year. reached the highest 2.5; on 12 April, result from shifts in a population’s
On a lighter note, locally produced home and will return soon. They age structure, mainly when the share
861 died showing As the Finance Minister AHM
Mustafa Kamal himself stated in his
potato chips will be cheaper with the
VAT reduced from 15 percent to 10, so
it was 2.3.
Since the beginning of May 2020,
[government] could have taken special
plan, but it remains a traditional
of the working age population (15 to
FROM PAGE 16 budget speech, “Although a large the middle class can at least eat their the growth factor has been within 64) is larger than the non-working
said they found recorded incidents section of our population can afford feelings. budget,” he added. age share of the population (14 and
the range of 0.8–1.4, and on June 8 Rasheda K Choudhury, executive
which took place between May 24 it was 1.0, reads the WHO Situation younger, and 65 and older).
director, Campaign for Popular
and 30, but those were reported in the
media the following week.
That’s way some incidents which
Nothing special Report. Education (CAMPE), said the
government should have given
About 65 percent of Bangladesh’s
population is between the age of 15
and 64 now.
occurred between May 24 and 30 have
FROM PAGE 3
rural economy and help marginal
vegetables and fish? How are
they going to benefit from those
Smuggling priorities on economic recovery,
investment and allocation in human
STIMULUS PACKAGES
been recorded in the latest report, farmers, he said. equipment?” he asked. FROM PAGE 16 The stimulus packages include a
Humayun told The Daily Star over the India, the chief minister says that resource capacity development subsidised loan fund of Tk 5,000 crore
The government could have Rather, it was necessary to create an
phone. allocated a Tk 2,000 crore fund in this a certain quarter is spreading such through education and health sector. to enable payment of salaries and
agriculture business linkage, storage
The report stated that 83 incidents regard. In India, the authorities have facilities for agro products and build propaganda to tarnish the image of “Creating skilled human resources allowances of workers and employees
of spreading rumour over Covid-19 already launched such programmes, a supply chain. is directly related with job market.” in export-oriented industries,
both governments. He asks people
were recorded in the country. At least he said. “Actually it was necessary to think ADB’s policy brief tilted “Covid-19 including ready-made garments.
to be aware of conspirators who are
87 people, including the highest 35 Currently, there are 2.8 crore about the whole agricultural sector Impact on Job Postings: Real-Time Two separate low interest loan
trying to drive a wedge between the
from Dhaka division, were arrested in enlisted farmers with cards. holistically,” he said. Assessment Using Bangladesh and facilities -- Tk 30,000 crore low-
friendly neighbours. He says that
connection with those incidents. However, allocation of Tk Even though the finance minister Sri Lanka Online Job Portals”, which interest working capital loan to
3,198 crore to promote farming mentioned the prime minister’s friendship between the two countries came out on May 29, said businesses
Furthermore, 473 people were is forged in blood and sacrifice. affected large industries and service
picked up and another 9,557 fined mechanisation and reducing custom directive on ensuring that not even in Bangladesh stopped hiring workers
TAJUDDIN RETURNS FROM INDIA sector organisations, and Tk 20,000
between the second week of March duty on importing parts of agriculture an inch of land is left uncultivated, because of the Covid-19 outbreak.
machinery would reduce the price he did not come up with any plans to Finance Minister Tajuddin Ahmed crore low interest working capital loan
and June 6 for committing various The number of job postings
of farming equipment and generate ensure it in the coming fiscal year. returns today after successful to the micro, cottage and small and
offences related to the virus outbreak, decreased by 87 percent in April this
employment, he said. The government is, however, completion of his three-day visit medium enterprises.
including relief embezzlement, year, in comparison with same month
“Many small businesses related to going to encourage onion farmers by to India. In a press conference at “We will expand the system of
violation of social distancing rules, of 2019, according to ADB’s policy
agriculture machinery will grow in the increasing import duty on onions, Tejgaon Airport he says that India distribution of low interest loans
arranging social gatherings, and brief.
rural areas and generate employment,” so that local farmers get interested in will provide all kinds of support to to poor village farmers, returned
opening businesses. The number of job postings in
Prof Sattar said. growing it. expatriate workers and trained
At least 448 people were reportedly rebuild the war-torn economy of April 2020 was down by 95 percent in
About the allocation of Tk 5,000 Shykh Seraj, eminent agriculture and unemployed youths for their
detained, fined and seven were expert, said the government Bangladesh. Both governments are textile and education industries, and
crore for the agriculture refinancing engagement in business and self-
arrested across the country between scheme through Bangladesh Bank emphasised on mechanisation of committed to fully implement the by 92 percent in the manufacturing
friendship treaty and strengthen trade industry. The sharp decline in the employment activities in the rural
May 31 and June 6. Most of the fines announced by the finance minister, agriculture in the proposed budget.
and industrial cooperation between textile industry could be related to the areas in agriculture, agriculture
and penalties were imposed due to Sattar said only the farmers who deal “But I think the government should
pandemic affecting key export markets related production and services, small
the violation of health and safety with banks would be able to avail the have emphasised on digitalisation of the two neighbours, he adds.
service. agriculture by now,” he said. such as Europe and the United States. businesses and small and cottage
regulations in public transport and INDIA WILL BE ASKED TO HAND
“But most of the small farmers are “This is the time to take new steps,” industries,” said the finance minister.
business institutions after the general OVER POWS
holidays ended on May 30.
The report found that 138 protests
illiterate and they would not be able
to avail it as they remain out of the
We’re preparing Bangladesh government has prepared said Anwar-ul Alam Chowdhury,
president of Bangladesh Chamber of
To support this initiative, a low
interest loan facility of Tk 2,000
a list of war criminals. The list will
crore has been created, which will
took place across the country between
April 26 and May 6. Some 45 percent
banking system,” he said.
Meanwhile, Prof Asaduzzaman, for the worst be sent to India, and the Indian
authority will be requested to hand
Industries (BCI).
“Steps should be taken to be distributed through Palli Sanchay
of the demonstrations was organised senior researcher at Bangladesh Indian doctors says increase capacity in some sectors Bank, Probashi Kallyan Bank,
Institute of Development Studies over the prisoners of war (POWs) to Karmasangsthan Bank and Palli
demanding unpaid wages and Eid like retail, cottage industry and SME.
(BIDS), said the initiative of AFP, New Delhi Bangladesh. Opportunities in light engineering, Karma-Sahayak Foundation (PKSF).
bonuses and 33 percent demanding mechanisation in the agriculture TK 10 CRORE FOR REBUILDING
relief, aid or food. Doctors in one of India’s top private blue ocean, agro process and IT sector Mustafa Kamal said the fourth
sector would help farmers cultivate DAMAGED HOUESE are opening up due to relation among priority sector will be job creation and
Eleven percent of the protests was and harvest crops, but it might hospitals shuffle through the intensive The government has allocated
staged over shutdown rules, lay-offs, care unit wearing full protective suits. China, US and EU,” he said. rural development.
render thousands of farm labourers Tk 10 crore to repair and rebuild Anwarul suggested creating a
and waiver of rents, while six percent unemployed. Every bed is occupied by coronavirus The objectives are to tackle
houses that were damaged during separate human resources ministry, unemployment in the industry, SMEs
was organised against irregularities “Only allocation for machinery patients, and fear is building that the
worst is still to come. the Liberation War, informs Relief which will conduct research. This and services sector and the rural non-
in the distribution of relief, aid or will not help small farmers as they
“We don’t know when this is going and Rehabilitation Minister AHM ministry will make recommendations, formal sector due to partial closure
food and five percent against hike in would not be able to buy the farming
machinery equipment,” said Prof to peak,” Dr Deven Juneja told AFP Qamaruzzaman. The housing scheme and the education ministry will of overall economic activities, and
bus fares, the CGS said.Besides, 123
incidents of violence related to novel Asaduzzaman, adding that the during a pause from his rounds at the will be run by local administration prepare curriculum along that line, he to create employment opportunities
coronavirus took place between March machinery would help only those Max Smart Super Speciality Hospital and relief committee, he adds. said. for expatriate Bangladeshis who have
1 and June 6, resulting in 13 deaths cultivating paddy. in New Delhi, as heart monitors SOURCES: June 13, 1972 issue of EDUCATION BUDGET NOT been forced to return from abroad, he
and 541 injuries, the report added. “What about those cultivating beeped throughout the ward. Purbodesh. ADEQUATE said.
Cars become
FROM PAGE 16
A car or jeep with the engine
capacity of 2,000-2,500cc
will have to pay 50 percent
more -- Tk 75,000. Similar
vehicles with an engine
capacity of 2,500-3,500cc
will have to pay 25 percent
more.
There is no increase at
all on the engine capacities
beyond 3,500cc. In
addition, microbus owners
will have to pay Tk 30,000
as tax, which 20,000 the
previous fiscal.
Tax paid during
registration and fitness
renewal is non-refundable.
The Bangladesh Road
Transport Authority (BRTA)
collected Tk 1,005.75
crore as advance tax from
vehicles in the fiscal 2018-
19, according to its annual
report.
This raise is worrisome
for middle-class families
with single family cars.
It comes at a time when
the number of private
car registrations has been
falling since 2017. BRTA
data shows that the number
fell from 19,573 in 2017 to
16,319 in 2018, and 15,016
in 2019.
While the increase will
amp up potential revenue
from the transport sector,
it will further disincentivise
the private ownership, even
as the public transport
sector sees no particular
improvement.
Virus deaths
FROM PAGE 16
Development revealed
yesterday that in the first
three months of 2020,
the G20 major economies
shrank by 3.4 percent.
This is the largest decline
since records began in 1998,
with the steepest decline in
China, where the economy
shrank by 9.8 percent.
THE HISTORY OF BUDGET
DHAKA FRIDAY JUNE 12, 2020, JAISHTHA 29, 1427 BS
8 MN HUDA 7 UNDER MAJ GEN ZIA 6 UNDER MAJ GEN ZIA 5 UNDER MAJ GEN ZIA
17 MAJ GEN A MUNIM 18 MAJ GEN A MUNIM 19 M WAHIDUL HAQUE 20 M SAIFUR RAHMAN
Finance ministers, AMA Muhith and M Saifur Rahman delivered budget speech 12 times each and SAMS Kibria six times.
6
City Edition
14 COUNTRY DHAKA FRIDAY JUNE 12, 2020, JAISHTHA 29 , 1427 BS
during downtime
The Italian season resumes
after a three-month break AFP, New Delhi
due to the coronovirus
pandemic on Friday when Asian cricket greats including Rahul Dravid
Juventus, still chasing a believe modern Test batting has become
possible league, cup and a thrilling spectacle thanks to T20 smash-
RAMIN TALUKDER Champions League treble, and-wallop fests such as the Indian Premier
host AC Milan in the return League.
In an interview
leg of their Coppa Italia “I actually believe Test batsmanship is a lot more exciting,
with The Daily
semifinal. lot more positive now than ever,” Dravid said in chat with
Star last month,
Juventus are favourites Sanjay Manjrekar on ESPNcricinfo. “People are playing
Bangladesh batting
to reach next Wednesday’s more shots even in Test cricket which is great,” he said.
consultant Neil
final after a 1-1 draw in the The 47-year-old Dravid was renowned as one of the most
McKenzie stressed
first leg but coach Maurizio technically correct batsman of his era and was nicknamed
the importance of players using
Sarri said that his side were the “The Wall” because of his robust defence.
this coronavirus-induced break to
venturing into the unknown “Of course I wouldn’t have survived today if I batted the
reflect on their careers. Cricket in
after such a long layoff. way I did in my days,” Dravid, who had a strike rate of
Bangladesh has been halted since
“None of the staff at 71.23 in ODIs, said. “Look at the strike rates today. One
March and while cricketers have
this moment knows where of the great things for India is that Virat Kohli values Test
been doing their bit to stay fit with
the preparation is because cricket so much. Players like Virat have shown how one
indoor workouts following BCB-
we come off an abnormal can excel in all three formats. Obviously I can’t compare
provided guidelines, the best thing
interruption,” he said, myself to Kohli or Rohit Sharma because they have blown
for them now would be to reflect on
adding that the stoppage was the ODI paradigm to an all new level.”
their careers so far and analyse their
completely different to the Sri Lanka’s World Cup winning captain Arjuna Ranatunga
flaws.
usual close season. credits T20s for adding aggression to Test batting.
It seems like Bangladesh batsman
“This is a unique “Let’s say 10 or more years ago, batsmen in Test matches
Nazmul Hossain Shanto has taken
situation, which does waited for the perfect loose ball to hit, but today when they
McKenzie’s words seriously, just
not give us certainty, also see a half-good delivery they go for a shot,” the 56-year-old
as any student should, as the left-
because we have not played said, adding that he will always find five-day cricket more
hander has been reflecting on his
friendlies. I am satisfied with satisfying. “Test cricket is like a meal made by mother,
fledgling career during the enforced
what I have seen during prepared with a lot of love, care and patience -- wholesome
cricketing hiatus.
these days in training, but food. T20 is like instant noodles,” he said.
“I have watched the two innings
the response during a game Former Bangladesh captain Habibul Bashar said T20-
that I played against Pakistan [in
will be different.” style batting and flat wickets have contributed to a glut of
the Rawalpindi Test in February].
Also, I watched the T20 century I For AC Milan, the past runs in the longer format.
scored [For Khulna Tigers against have done to handle the deliveries worrying how things will go once 400 a number of times. It is not three months have been “In the past team were satisfied with [scoring] 150 to 200
Dhaka Platoon in the last BPL],” better and was just trying to cricket resumes. I think it is better easy to score 400 in a game. I was a turbulent time with runs per day, now teams want at least 300. This is why we
said Nazmul. understand what I should do when not to think about cricket during looking at the types of shots he incessant speculation that were seeing more results in Tests,” Bashar told AFP. “Another
Re-watching the highlights reel I get similar chances in the future,” this crisis. I will think about cricket played. Aside from this, I also the club wants to dismiss reason is flat wickets, rarely do we see green-top wickets. The
was not just a way of relieving sweet explained Nazmul, who got starts once everything is normal and watched Tamim Iqbal and Imrul coach Stefano Pioli at the biggest reason is of course more limited-over matches.”
memories as Nazmul also analysed in Rawalpindi but failed to convert. hopefully we will get time for that. Kayes’s record opening Test stand end of the season and
his mistakes from his previous Having played only four Tests, It will be great if I could start the for the country when they put on replace him with German
matches. five ODIs and two T20Is since his way I left off. And even if I can’t do 312 against Pakistan in the second Ralf Rangnick.
“I have not made many big international debut in January, well right away in the first or second innings [in 2015]. Actually, I have The team will also be
scores. So, I was just trying to see 2017, Nazmul was enjoying game, maybe I will pick it up in the been trying to watch the matches missing 38-year-old Zlatan
how I played shots and what I did seemingly the best time of his third game,” explained Nazmul. that had some incredible knocks. A Ibrahimovic with a calf
during my maiden T20 century. career so far after a successful Nazmul’s penchant for the lot can be learned from these types injury he suffered in training
But I watched the highlights of BPL and domestic career that longer version of cricket was also of games,” said Nazmul. last month.
the Pakistan game more. Everyone was followed by some promising evident as the left-hander talked From Nazmul’s demeanour Gazzetta dello Sport and
knows how formidable Pakistan’s sparks in the international arena. about taking lessons from some during this break, it can be hoped other media said there was a
bowling line-up is. So, I watch However, instead of fearing a loss historical Test innings. that the left-hander, having thus far tense meeting between chief
how I survived during that game. I in momentum, the 21-year-old “During this break, I watched taken McKenzie’s advice to heart, executive Ivan Gazidis and
realised that I should have scored at has held on to a more mature and highlights of Bangladesh’s maiden may also live up to the expectation of the players on Wednesday
least a century in that game. I was optimistic view. Test and also a few Ashes games. the South African coach by returning to discuss a wage reduction
actually wondering what I could “I am actually not interested in I have watched Brian Lara’s Test to cricket ‘hungrier than ever’. related to the stoppage.
After a long shutdown due to the coronavirus pandemic, Australia’s biggest spectator sport, Aussie Rules,
returned to action yesterday. But instead of the regular 100,000 packing the stands at the Melbourne Cricket
Ground, the stadium was empty. Players of Collingwood and reigning champions Richmond took a knee around
the centre in a gesture of solidarity against racism. PHOTO: COLLECTED
Fans welcome
at Djokovic’s Injury fears loom
event
AFP, Belgrade
After being suspended for
over restart
AFP, London
three months due to the
coronavirus pandemic, The Premier League will
top-level international return after a 100-day
tennis returns this weekend stoppage on June 17,
in Belgrade with a charity cramming the remaining 92 games of the
tournament hosted by season into just five-and-a-half weeks.
World No. 1 Novak A deluge of football may be welcomed by
Djokovic and where fans fans starved of live action for three months.
will be welcome. But it is expected to take a heavy toll on
Tickets sold out in seven players hit by the combination of a long
PHOTO: COLLECTED
minutes after they were layoff, little training and fixture congestion.
put on sale online last “We are expecting more injuries at this
Wednesday. The event will time,” Newcastle doctor Paul Catterson
be broadcast live in more told BBC. “We have had players asking if
than 100 countries. they can have ice baths after training and
The matches will be they can’t -- all we can do is give them ice
played at Novak Tennis to take home. It’s like going back 15 years.”
Centre, financed by The injury risk is of particular concern
Djokovic’s family, with a Manchester City striker Sergio Aguero
for players who are out of contract at the
view of the Danube river. is only four goals away from matching
end of the season.
Dominic Thiem, Wayne Rooney as the player with the
Championship side Charlton will
Alexander Zverev and
Grigor Dimitrov will play be without top scorer Lyle Taylor as the most goals for a single club in the
but giants Roger Federer, out 30-year-old has decided not to play and put Premier League era, but his wait may go
for the year following knee a lucrative move at risk. on longer due to his spotty injury record
surgery, and Rafael Nadal, “It makes me think what would happen if
I had an injury now that threatened the rest
as he may may not be rushed back.
who recently resumed
training, will be absent. of my career,” Taylor told Sky. “I’ll be honest According to sports science specialist
“Taking the situation with you, it scared the life out of me.” Joel Mason, Bundesliga injuries went from
into account, I didn’t have However, the lesson from Germany’s a pre-lockdown average of 0.27 per game to
the nerve to call and invite Bundesliga, which returned on May 16, is 0.88 in the first round of fixtures after the
them,” said Djokovic. that an increase in injuries is inevitable. competition resumed.
16 DHAKA FRIDAY JUNE 12, 2020, JAISHTHA 29, 1427 BS
City
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