ESC Dialogue on budget urges ensuring efficient implementation of bigger healthcare allocation

The fourth episode of ESC Dialogue, organised by the Economics Study Center (ESC) on June 14, focused on "Budget 2020-21 and its effectiveness to fight against COVID-19 crisis."

Economics Study Center (ESC) is a student organisation of the Department of Economics, University of Dhaka. It organises different events to create a platform for experts and students to discuss various national and international economic issues. The target of the episodes of the ESC Dialogue is to highlight experts' views on current economic issues.

ESC Dialogue: Episode 4 was moderated by Dr M. M. Akash, professor of the Department of Economics at University of Dhaka, while the panelists included Dr Selim Raihan, professor of the Department of Economics at University of Dhaka and executive director of SANEM, Mir Nasir Hossain, former president of FBCCI, Dr Iqbal Kabir, director of Planning and Research, DGHS, and Dr Nazneen Ahmed, a senior research fellow of BIGD.

The discussants highlighted sectors such as agricultural, industrial, and health -- sectors that can be affected the most due to the Covid-19 crisis -- and reasoned how the national budget is important in helping these sectors recover. They also argued on whether this budget is susceptible to reducing poverty and aid poor people who are seriously getting affected due to this global pandemic.

Tanjim UL Islam, the president of ESC, started the session by introducing the chair and the discussants. At first, Dr Nazneen shared her point of view on the budget. According to her, general people were eager to see how much allotment is given to the health sector, social security, and the post-pandemic world. Dr Nazneen added that it is not about achieving a 8.2% growth rate anymore -- if the growth rate remains positive, it is enough.

"We need to ensure the social security and employment of people. All migrant workers cannot be absorbed into the agricultural sector. There should be a separate and a clear plan for these newly unemployed workers as well as proper surveillance is needed to assure that the tax incentives for the industrial sector are also used for the welfare of the workers," she said.

According to Dr. Iqbal, it is high time for a health-focused budget, not a normal budget. A budget like that will not only focus on growth but also concentrate on the farmers' and workers' health. He said that there is an allotment of 100 crore taka for research in the health sector. However, he is worried that the plan is not specific enough to take place. He also emphasised on the decentralisation of the health sector. Division-wised plan of the health sector will reduce the pressure on the Capital or the Dhaka city which will ensure the medical care of all types of people according to him.

Mir Nasir Hossain expressed his concern about the poor preventive plan for the Covid-19 crisis. Most countries have ended lockdown as Covid-19 cases are decreasing, but Bangladesh has ended its lockdown when the number of new cases is still increasing. He said that the safety of the workers' health needs to be ensured if Bangladesh wants to develop as a country. He supported the tax cut in the corporate tax system. However, he is concerned the tax cut can affect the consumers as most of the people who are capable of paying taxes are reluctant about it. Only 20-22 lakh people pay tax fairly in Bangladesh. He also added that the banking sector's cash flow loan should not be hampered due to the extreme pressure or dependence on this sector.

Dr Selim Raihan said that there is less acknowledgment of the current crisis and it is noticeable on the budget. It's focused on the Covid-19 crisis, but the infrastructure or the plan is not described in detail. This budget doesn't offer much for people who are facing problems due to other issues or diseases besides Covid-19. According to him, the allotment in the health sector for non-Covid-19 patients has increased by only 1,000 crore taka, which is not enough. 85% of people are involved in the informal sector where the income is not fixed. There is no transparent plan for them or for the increased number of poor people. Dr Selim said that the government should have a plan to include private hospitals in dealing with the shortage of medical equipment and ensure that no one dies without treatment amid this pandemic.

All agreed that the budget has highlighted important sectors and the allotment in these sectors has increased, but also that it is not sufficient. The proper planning is also somehow missing. They emphasised that the government needs to focus on both employment and people's safety. According to them, the health sector is often neglected. Just because of the lack of proper infrastructure, this sector failed to use its allotment properly every year.

It is not about increasing the allotment in this sector anymore -- it is about ensuring whether this allotment is used sufficiently or not.