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In the name of Allah, the Beneficent and
Merciful
Mr. Speaker,
I seek your leave to place before this
august House the budget for the financial year 1998-99 and
the supplementary budget for 1997-98.
2. National budget is not a mere
compilation of cold statistics of income and expenditure
of the government. The hopes and aspirations of the people
are reflected in the national budget. Although the
approval of a budget relates to a specific financial year,
every budget in reality reflects the successes and
failures of the past years, the compulsions and priorities
of the present and the guidelines for the future. I would,
therefore, like to recount the experience of the past,
analyse the present situation and envision the future. In
reality, we can reach our desired goals only by
implementing the economic activities outlined in the
budget.
3. The national identity of the Bengali
people was shaped gradually through the historical war of
independence and relentless struggle of the awakened
masses for democratic rights. At the outset I remember
with profound reverence the great hero of our liberation
struggle, noble dreamer of the Golden Bengal, the
architect of independent and sovereign Bangladesh and the
Father of the Nation Bangabandhu Sheikh Mujibur Rahman.
His mission to build the Golden Bengal on the basis of
economic growth and social justice was suddenly
interrupted by the sinister conspiracy of the assassins.
With his martyrdom, the ugly forces opposed to the spirit
and ideals of the liberation struggle surfaced.
Fortunately for us Prime Minister Sheikh Hasina has come
forward to complete the unfinished tasks of Bangabandhu.
Her noble sacrifice and fearless leadership for the
establishment of democratic and civil society in the
post-independent Bangladesh will forever be written in
golden letters in our history. Under her leadership, the
people of this country not only regained voting right but
also escaped from economic stagnation. I remember with
profound respect those valiant and fearless sons of
Bangladesh whose supreme sacrifices have earned us a free,
independent and democratic Bangladesh. I also recall with
gratitude the invaluable contribution of the four national
leaders who were close associates of the Father of the
Nation. From the deepest core of the hearts of the
grateful nation, the noble song - we shall never forget
you - will be reverberating for all time to come. Our aim
is the realization of those noble ideals which animated
the Father of the Nation and the freedom fighters to make
supreme sacrifices. We do not aim at achieving growth for
the sake of growth only. We want to see percolation of the
benefits of growth to the masses. In preparing this budget
I was inspired by the firm commitment of Prime Minister
Sheikh Hasina who has vowed to bring smiles on the faces
of the poor.
Mr. Speaker,
4. In last June when we prepared the
budget we expected that Bangladesh would experience rapid
growth in a stable and tranquil international economic
environment. But within a short period we were confronted
with the totally unexpected and difficult reality of a
turbulent and volatile international economic environment.
Globalized economy has, on the one hand, opened magic
windows of immense opportunities and on the other hand,
exposed us to unknown dangers. The slump in the economies
of the East and South East Asian countries which were once
branded as mighty tigers, was unthinkable. But now it is a
reality. One can gauge the depth of this crisis from the
following statistics. Indonesian currency fell by about 80
percent against the value of dollar at the peak of the
crisis. The value of currencies of Thailand, South Korea,
Malaysia and the Philippines decreased by 35 to 50
percent. As a result of the crash in the share market,
assets to the tune of 40 percent of the GDP of these
countries were wiped out. IMF predicted 4.25 percent
growth in 1998 for the world economy before the onset of
the financial crisis. Because of the crisis this estimate
has been reduced to about 3 percent. The economies in some
countries of South East Asia will not grow at all, some of
them may even contract significantly this year. This
crisis has not remained confined to East and South East
Asia only. Its influence is felt in varying degrees in
other regions also.
5. By the grace of Allah the Merciful,
Bangladesh has been able to safeguard herself from the
contagion of this terrible crisis. We have been able to
protect our macro economy from potential disaster by
adopting a prudent credit policy, a flexible exchange rate
management, careful supervision of the banking sector and
relentless endeavours in balancing public income and
expenditure under the sagacious and strong leadership of
Prime Minister Sheikh Hasina. But the threat to the world
economy is not over yet. Many countries in Asia are now
struggling to cope with deepening economic crisis and
increased trade competitiveness. In the face of this stiff
competition we must implement reforms without delay and
prepare ourselves to face the fierce competition unleashed
by the forces of free market economy. Towards this end we
must complete all the economic reforms in the shortest
span of time. In a sense the so-called miracle economies
of South East Asia are victims of their remarkable
success. Blinded by rapid growth, they failed to realize
the inherent weaknesses in their economic systems.
Consequently they are paying a heavy premium now. Such
economic crisis is not at all unheard of. In the thirties
of this century the entire western hemisphere was plunged
into a great economic depression. In this regard we should
remember the note of warning in IMP'S World Economic
Forecast 1998 : "Serious financial crises are not a
new phenomenon and they will occur in the future. With the
increasing globalization of financial markets and the
apparent tendency for the investors to react exuberantly
to success, belatedly to emerging concerns and eventually
to overreact as sentiment changes, it may well be that
risk of crisis is rising including the scope for
international contagion". We shall have to remain
ever vigilant not only in the management of the financial
system, but also in the management of the macro-economy.
6. International economic stability
alone is not sufficient for development, political
stability is also essential. Suitable regional environment
in economic and political spheres is a precondition for
growth. In the past, attempts were made to create
congenial regional atmosphere but these efforts failed to
produce results because of weaknesses in political
leadership. Under the strong and farsighted leadership of
Prime Minister Sheikh Hasina, the present government has
taken certain historic steps to reduce tension and to
enhance cooperation in the region. The Peace Treaty for
Chittagong Hill Tracts is the realization of a
long-cherished dream of the nation. This treaty will
stimulate economic growth and protect the constitutional
rights of the less advanced communities. The historic
Ganges Water Treaty has laid the foundation for the
development of agriculture in Bangladesh. The recently
held 3-nation summit has established new links among the
entrepreneurs and business leaders of these three
important countries. In general, a new horizon has been
unfolded for peace and stability on a long term basis in
the South Asian region.
Mr. Speaker,
7. In order to attain proper
coordination in the development activities, the Government
has already approved Fifth Five Year Plan covering the
period 1997 to 2002. This plan makes a significant
departure from the previous plans on two counts. First,
the Fifth Five-year plan is not the instrument of a
command economy. The targets of the plan are indicative.
These targets will be revised in the backdrop of the
changed circumstances. However, the main objectives of the
Plan will remain unchanged. Secondly, the driving force of
this Plan is the private sector. It is expected that about
56 percent of the total investment will come from private
sector. The main strategy of the Plan is not to expand
public investment but to encourage increased investment by
private sector, by maintaining macro stability and by
creating infrastmctural facilities. Our aim is eradication
of poverty through accelerated growth. Employment
opportunities will be created in a planned framework.
Efforts will be intensified to improve the quality of life
in the rural areas. The key to economic development of
Bangladesh is the human resource development. Literacy
rate will be raised from 47 percent to 70 percent in year
2002. Life expectancy will be raised to 60 years.
Population growth rate will be reduced from 1.75 percent
to 1.32 percent during the plan period. The proportion of
the poor in total population will be reduced from 45
percent to 30 percent by the year 2002. Economic growth
will make more resources available for the development of
human resources and this in turn will reinforce growth
process.
Mr. Speaker,
8. In the budget speech for 1997-98, I
predicted a growth rate of 5.7 percent in GDP for 1996-97
which coincided with the first year of the present
government's term. According to the final figures, the
actual growth rate achieved in the last financial year was
5.9 percent. The preliminary estimates indicate that
growth in 1997-98 is 5.6 percent. This growth rate is
comparable to that of last year. It may be noted here that
according to the data of the Bangladesh Bureau of
Statistics never before in Bangladesh such high growth
rates were achieved for two consecutive years by any
previous government. The growth rate of 1997-98 has,
therefore, added a new dimension in our economic history.
The rapid increase in growth rate of last two years
indicates strongly the success of the government's
economic policies. Owing to unfavourable weather, growth
of agricultural sector decelerated in FY 1998-99 compared
to FY 1997-98. In 1996-97 actual growth rate in
agriculture was 6.4 percent. In 1997-98 production in
agriculture has expanded but the growth rate will decline
to 3 percent. Aman rice production was lower than last
year by 7.2 percent due mainly to adverse weather
conditions. Because of record production in boro and
wheat, crop subsector in the current year is expected to
register a growth rate of about 1 percent. Higher growth
rates in fishery, forest and livestock sub-sectors will
enable the attainment of a growth rate of 3.1 percent in
agricultural sector. In the industrial sector growth is
faster in the current year than last year. In 1996-97
overall growth rate in industrial sector was 3.5 percent.
In the current year this growth rate has increased to 8.1
percent . In the case of large industries the rate is
higher. Last year large industries grew by 3.3 percent;
this year, by 10.1 percent. Last year growth rate in small
scale industrial sub-sector was 3.9 percent; in the
current year this rate has gone up to 4.2 percent. In the
construction sector the growth rate has increased to 6.2
percent from 4.9 percent. In other sectors also growth
rates have accelerated. It appears that besides
agriculture growth rates in commercial services and
mineral resources sector may decline slightly.
9. For estimation of inflation two
indices are currently in use in Bangladesh. The base of
one set of index is 1973-74 and this index is compiled on
the basis of prices of consumer goods of the middle-class
of Dhaka city. The average of 12 monthly inflation rates
calculated on the basis of this index has been for a long
time quoted in the budget speeches as the annual estimated
inflation rate. Recently a new index has been developed on
the basis of the prices of consumer goods in different
regions and taking 1985-86 as base year. The basis of this
estimate is comprehensive. However, at the initial stages
a large number of tests had to be carried out. Hence this
inflation rate was not used in the earlier budget
speeches. Today I propose to present estimates of both
inflation rates on the basis of average of 12 monthly
rates. In the month of April, 1998 the inflation rate was
6.28 percent on the basis of the old index. In June 1997
this index stood at 3.9 percent; in June 1996, 4.1
percent, and in June 1995, 5.2 percent. According to the
new index in April 1998, the inflation rate was 6.63
percent. In June 1997 the rate was 2.51 percent and in
June 1996, 6.65 percent. On the basis of both the indices
the inflation rate has increased compared to last year.
According to experts current inflationary pressure is due
to unexpected shortfalls in Aman production. Meanwhile
record boro and wheat crop is being reaped. On completion
of harvesting the inflation rate is expected to decline.
Because of vagaries of nature such seasonality in the
inflation rate is not unusual. However, the Government is
determined to curb any long term inflationary pressure.
Towards this end monetary and fiscal policies are reviewed
regularly. The uncertainties of inflation will never be
allowed to destabilize the macro stability and the
Government will not hesitate to take any stern measure to
contain inflationary pressure.
10. A cautious monetary policy was
pursued in the current fiscal year. In November 1997 bank
rate at which central bank provides credit to the
commercial banks was raised from 7.5 percent to 8 percent.
During July-February 1997-98 narrow money supplies (M-l)
increased by only 1.6 percent. The rate of increase for
the corresponding period last year was 11 percent. Growth
rate of broad money supplies (M-2) decreased slightly this
year compared to corresponding period of last year. During
July-February last year the rate of growth of M-2was 5.92
percent, in the current year the rate is 5.1 percent.
Despite cautious monetary policy, the availability of
credit to private sector was increased by reducing growth
of credit to public sector. During July-February last year
government's borrowing from the banking system increased
by 18.7 percent. In the current year government's
borrowing for the corresponding period increased by 5.54
percent only. During July-February period credit for the
public sector increased by Tk 444 crore whereas credit for
the private sector increased by Tk 2409.7 crore raising
the total to Tk 37914.8 crore. A portion of government
borrowing from the commercial banks has been utilized to
repay the accumulated debt to Bangladesh Bank.
Government's borrowing from the central bank decreased by
Tk 175.48 crore on May 20, 1998 compared to total
borrowing on June 30, 1997. 11. In the turbulent
international economic climate, growth of world export
decelerated in 1998. According to projections of
International Monetary Fund, exports from developing
countries increased by 10.8 percent in 1997. In 1998
growth rate of exports from developing countries will drop
to 7.4 percent. Compared to average performance of
developing countries, the performance of exports from
Bangladesh during last two years is highly encouraging. In
1996-97, exports from Bangladesh in dollar terms increased
by 13.8 percent. In the July-April period in 1997-98, it
accelerated to 16.75 percent. The rate of growth of
exports in Bangladesh is more than 200 percent higher than
that of the developing countries. Imports during first six
months of the current fiscal year increased by 2.21
percent. However, imports of industrial raw materials
during this period registered an increase of 17.7 percent.
The deficit in the current account balance during the
period July-December of FY 1997-98 decreased by 24.9
percent compared to the corresponding period last year.
Despite a sudden increase in food imports in the later
half of the current fiscal year, there has been no
deterioration in the reserve situation of the country
thanks to rapid increase in exports. Bangladesh Bank is
pursuing a flexible exchange rate policy with a view to
encouraging exports. The exchange rate is determined on
the basis of daily index of Real Effective Exchange Rate (REER).
During the current year, so far taka was devalued against
dollar on five occasions and taka depreciated by about 5.7
percent. In the backdrop of financial turmoil in South
East Asia, the depreciation of currency in Bangladesh was
modest. In the same period in India currency was devalued
by 11.6 percent; in Pakistan, 8.3 percent, in Thailand,
33.7 percent; in South Korea, 38.28 percent; in Indonesia,
77.3 percent; in Malaysia, 33.21 percent; in Nepal, 10.1
percent and in Sri Lanka, 7.8 percent.
12. During FY 1996-97, the expatriate
Bangladesh nationals remitted $1475 million. The
remittance from abroad is largely influenced by
international economic environment. Despite the slump in
South East Asia, the remittance by Bangladesh citizens
increased at a satisfactory rate. During the first eight
months of the current year it increased by 7.85 percent.
Mr. Speaker,
13. On first June 1998, total foreign
exchange reserve in Bangladesh Bank stood at $1.680
billion. The reserve on the same day in 1997 was $1.607
billion. There has been a slight increase in reserve
during last year. This improvement was attained in the
reserve position of Bangladesh despite highly unfavourable
international climate. It may be mentioned here that
before the assumption of office by the present government,
there was a sudden fall in the foreign exchange reserve in
fiscal year 1995-96. During the period 30th June, 1995 to
30th June, 1996 total reserve in Bangladesh
plummeted from $3.07 billion to $2.03 billion. The present
government had to endeavor very hard during last two years
to arrest this fast deterioration in reserve.
14. Parallel to the rapid growth of
GDP, there has been some encouraging trends in saving and
investment. First, the share of investment in GDP was 11.5
percent in FY 1990-91; it increased to 17.38 percent in FY
1996-97. The experts are of the opinion that
investment/GDP ratio has now increased to about 22
percent. Secondly the share of private investment in total
investment is gradually rising. In FY 1990-91, the share
of private investment was 50.6 percent, it increased to
62.4 percent in FY 1996-97. The experts are of the opinion
that national saving rate has also increased
significantly. According to latest estimates, national
saving rate is estimated a about 20 percent. Since the
assumption of office by the present government, foreign
direct investment has increased significantly. In FY
1990-91, total foreign investment in Bangladesh stood at
$35.9 million. In FY 1996-97, it increased to $320.8
million. Recently there has been a surge in foreign direct
investment in electricity, energy and physical
infrastructure sectors. In fiscal year 1997-98, foreign
private investment in natural gas sectors stood at $320
million; in electricity, $95 million; and in
telecommunications, $110 million. In other words,
investment in these sectors alone stood at $525 million
(equivalent to Tk. 2450 crore). Furthermore, investment to
the tune of $363 million was registered in the Board of
Investment during the period July, 1996 to December, 1997
in addition to investments listed above. Moreover,
Infrastructure Development Company has been set up under
the aegis of the government with a loan of $225 million
from IDA. It will attract foreign direct investment in
physical infrastructure through provision of concessional
loans.
Mr. Speaker,
15. The shocks of world economy impinge
on our economy in various ways. Much more complex than the
shocks of the world economy are long-standing internal
problems. The losses of state-owned enterprises are
mounting; the reforms in banks and financial institutions
are incomplete and administrative systems needs to be
streamlined. The previous governments tried sporadically
to grapple with these long standing problems. However, due
to lack of political commitment the reform measures
undertaken by them did not produce any sustainable result.
The present government has unstinted support to reform
programmes. We are determined not only to resolve these
problems through reforms but also to create new
opportunities in the economic sphere. The present
government is implementing in a phased manner all the
reforms pledged in its election manifesto of 1996. We
pledged in 1996 that we will strengthen local government
institutions through administrative decentralization. In
the first phase a high level committee was constituted for
reforming local government system. On the recommendation
of this committee, a law on the Grameen Parishad (village
council) has been enacted. In carrying out development
activities, the village council will act as the link
between the village and union. The Union Parishads have
been reorganized. Previously there were three wards in
each union; now there are nine. Under the new system
female members of UP are directly elected. In the
meanwhile, elections of Union Parishads have been
concluded peaceftilly. Measures have already been taken to
set up Upazila Parishad at Thana level and it is expected
that democratically elected local government will come
into being at this level by next December. District
councils will be reorganized in the next phase.
16. Important measures have been taken
for administrative and legal reforms. A permanent Law
Commission has already been set up by the Government. This
Commission is advising the Government in the
simplification of existing laws and the enactment of new
laws. A training academy for the judges has already been
established. A project for judicial reforms supported by
the World Bank is under process. The Administrative
Reforms Commission is working to establish an
administrative system capable of facing the challenges of
the 21st century. A project for reforms in budget and
expenditure control is being implemented with the
assistance of the British Government with a view to
strengthening the public financial management. New
classification system in the budget has been introduced as
a result of this reform programme. New chalan, pay bill
and other forms will be introduced from 1st of July 1998
with a view to introducing computerization in budget and
accounting. Already computers have been installed in the
budget wing of the Finance ministry and offices of Chief
Accounts Officers. This will facilitate analysis and
examination of the budget and will also render accounting
system more effective.
17. The British statesman Winston
Churchill used to say that socialist leaders consider
profit in business as a sin, but he considers losses in
business as a vice. I am of the opinion that losses in
state-owned enterprises is a vice not only from the
capitalistic point of view but also from the consideration
of social equity and justice. The state-owned enterprises
are a sacred trust of the people. The main purpose of
bringing them under ownership of the state is to
redistribute the benefits of these enterprises to the
poor. In reality the taxes collected from the poor are now
financing their losses. The losses of state-owned
enterprises resulting from the accumulated liabilities and
mismanagement have turned out to be a big burden for the
state and the banking system of the country. Total losses
of eighteen state-owned corporations (excluding banks and
financial institutions) are estimated at Tk 1039.13 crore
for FY 1997-98. Total accumulated losses of all
state-owned enterprises excluding the financial sector
stand at Tk 12357.1 crore. Throughout the world, the
state-owned enterprises fail to attain their objectives.
It is very unlikely that they could be profitably
rehabilitated. The Government has, therefore, been
pursuing a two-fold strategy. Firstly, loss-making
enterprises are being closed by paying adequate
compensation to officers and workers through voluntary
separation schemes. Under this programme the operations in
eleven BTMC mills and four newspapers and periodicals run
by state-owned Press Trust have been suspended. About Tk
200 crore was spent for the voluntary separation programme
in FY 1997-98. Secondly, new guidelines are being prepared
for privatization. It has been decided to separate sale of
surplus land of the enterprises from the privatization
process. The Privatization Board has finalized
arrangements for transfer of nine enterprises to the
private sector in the current year and shares of nine more
enterprises have been offloaded in the share market.
Programmes have been adopted to hand over loss-making
enterprises to the management of the workers on an
experimental basis. Indeed, the success of privatization
programme is very important for the future of the nation.
I, therefore, seek cooperation of all irrespective of
party affiliation in privatization process in the greater
interest of the nation.
18. Banks and financial institutions
transform savings into investment. The invisible hand of
the banks ensures most efficient utilization of'financial
resources. The weakness of the banking system not only
threatens depositors' interest but also poisons investment
climate in the country. The Government has, therefore,
unequivocal commitment to the on-going financial sector
reform. The Government is determined to keep the banking
system in Bangladesh safe for depositors. However, the
benefits of financial sector reforms cannot be reaped till
the portfolios of investment in banks improve. A task
force has been set up in Bangladesh Bank to intensify
drive against default loans. In order to expedite the
disposal of default cases, three exclusive Loan courts and
two exclusive Bankruptcy courts have been set up in Dhaka
and Chittagong. As a result of these efforts, the
proportion of classified loan is decreasing gradually. The
Banking Reforms Committee has already submitted its
recommendations to streamline the banking system. A
Commercial Bank Reform project has been undertaken with
the assistance of the World Bank. In the near future,
banking laws will be further amended to strengthen the
banks.
19. Throughout the world, investment in
share market is risky. Share market is run by the private
sector. The main role of the government is proper
regulation. With this end in view, Securities and Exchange
Commission has already been strengthened. A programme for
capital market development has been undertaken with the
assistance of the Asian Development Bank. The Securities
and Exchange Commission has already issued licenses to
seventeen merchant banks. Major reforms were introduced in
the management of the two bourses in the country.
Computers have already been introduced in the Chittagong
Stock Exchange. A loan amounting to Tk 8.4 crore was
provided through BSRS on concessional terms from the
revenue budget to Dhaka Stock Exchange for immediate
automation. Restrictions on foreign investment in the
share market have been eased. Further a provision for
three year lock-in of the share of local sponsors has been
introduced. The Law on Central Depository System is being
enacted on a priority basis. Important proposals for tax
relief to encourage the share market have been formulated.
I propose to discuss these measures in the second part of
my speech.
Mr. Speaker,
20. I have, so far, dwelt on the
background of the budget. Let me now bring into focus the
main features of the budget. The original outlay for
revenue budget in FY 1997-98 was Tk 14544 crore. The
revised budget estimates now stands at Tk 14500 crore. I
am glad to inform this august house that as a result of
close supervision and prudent management in public
expenditure, no additional allocation in excess of
original allocation will be necessary for the revised
revenue budget. The original outlay for Annual Development
Programme (ADP) 1997-98 was estimated at Tk 12800 crore.
The size of the revised ADP has been estimated at TK 12200
crore, a reduction of 4.6 percent. In the original budget
it was estimated that Tk 6021 crore would be provided for
the ADP from the internal resources. The revised estimate
for this purpose stands at Tk 5521 crore. External
resource for ADP was estimated at Tk 6779 crore, the
revised estimate in this regard is Tk 6679 crore.
21. For FY 1998-99 I have proposed an
outlay of Tk 15937 crore in the revenue budget. This is
only 9.9 percent higher than that of revised revenue
budget for FY 1997-98. In FY 1997-98 the estimated revenue
expenditure was 16 percent higher than that of revised
budget of the previous financial year. With a view to
providing maximum contribution from our own source for
ADP, revenue expenditure has been cut as far as possible.
For FY 1998-99, the Annual Development Programme is
estimated at Tk 13600 crore. The proposed size of ADP is
11.5 percent higher than that of revised ADP for 1997-98.
Estimated revenue receipts and revenue surplus for FY
1998-99 are Tk 20776 crore and Tk 4849 crore respectively.
After adding net capital receipt and resources used for
self-financed projects by various autonomous bodies Tk
6218 crore will be provided from internal resources. About
46 percent of the proposed ADP will be financed from our
own resources.
22. 54 percent of the resource proposed
for development budget is expected to come from external
sources. In FY 1998-99 receipt from external sources has
been estimated at Tk 7382 crore. This is 8.9 percent
higher than external assistance in FY 1997-98 revised
budget. It may be mentioned here that despite increased
external assistance to Bangladesh, the availability of
concessional loan and grant worldwide is decreasing.
According to World Bank estimates, the amount of
concessional loan and grant was $40.1 billion in 1996; it
dropped to $37 billion in 1997. The increased external
assistance to Bangladesh testifies to the continuing
support of our development partners to our reform
programmes. Since the present government assumed office,
the World Bank president, ADB president, chief executives
of OECF, UNICEF, IDB, IFAD and a number of ministers
associated with external assistance programme visited
Bangladesh and assured us of their continuing support, it
is expected that the range of World Bank's minimum annual
assistance to Bangladesh will be increased to $600-$650
million as against $ 400-$450 million in accordance with
their new programme.
23. I would like to dwell first on the
allocation for the agricultural sector. 64 percent of the
employment opportunities in Bangladesh directly originates
from agriculture. Keeping in view the problems of
agriculture and farmers, the Election Manifesto of
Bangladesh Awami League observed : "During last 5
years of its rule, the BNP government pushed agricultural
sector into a destructive path. 18 farmers were gunned
down by the previous government only because they asked
for fertilizer at fair price. Dependence on external
source for food has increased. Awami League will put an
end to this situation." The present government has,
during last two years, fulfilled its commitment to a large
extent. The availability of fertilizer has been ensured
all over the country by providing adequate subsidy. During
FY 1992-93, the country's food production was 1.95 crore
metric ton, in FY 1993-94, the production fell to 1.91
crore metric ton. In FY 1994-95 it further declined to 1.8
crore metric ton. On the other hand, after the assumption
of office by the present government, food production
increased to 2.03 crore metric ton in FY 1996-97. Despite
shortfall in Aman production, food production during FY
1997-98 will be more than 2.05 crore metric tons. Record
levels in food production during two consecutive years
testify to the success of agricultural policies pursued by
the present government. Allocation for Ministry of
Agriculture in FY 1997-98 original budget was at Tk 186.34
crore. I propose to raise this allocation to Tk 212.48
crore in the revised budget. Estimated allocation for crop
subsector in ADP 1997-98 was Tk 343.30 crore. In the
proposed ADP for 1998-99 Tk 377.40 crore has been
allocated for this subsector. To provide subsidy on
essential inputs I propose to allocate Tk 129 crore for
crop subsector in the revenue budget for FY 1998-99. As a
result of prudent management it was possible to reduce
expenditure on fertilizer subsidy. I propose an allocation
of Tk 718.88 crore for crop subsector in FY 1998-99 by
adding up the sums provided in ADP and revenue budget
including subsidy. Allocation for Fisheries subsector in
the ADP for 1997-98 was Tk 60.78 crore; this is proposed
to be raised to Tk 85.60 crore in the ADP for FY 1998-99.
Allocation for Livestock subsector in ADP 1997-98 was Tk
73.24 crore; in ADP 1998-99 the allocation has been
proposed to be raised to Tk 80 crore.
24. I would now like to discuss the
food management system. Despite a slippage from Aman
production target due to adverse weather, food production
in the current financial year will be about I percent
higher than that of last financial year. According to the
latest estimates, production of wheat will be around 18.02
lakh metric ton and that of Boro is expected to reach the
record level of 79.79 lakh metric ton. Yet, as a
precautionary measure, import of food grains under
government's own financing has been increased. During FY
1996-97 quantity of imported food grains under
government's own financing was only 1.77 lakh metric ton.
During current financial year, quantity of imported food
grains stood at 4.06 lakh metric ton, an increase of 2.29
lakh metric ton. Steps have been taken to encourage food
grain import by private sector by reducing rates of duty
and taxes on the imported rice and by providing adequate
loan from the commercial banks. In FY 1996-97, only 2.37
lakh metric ton of food grain was imported by private
sector. During the current financial year private sector
has, so far, procured 10.19 lakh metric ton of food grain
from abroad. According to estimates made by WFP in May,
per capita daily availability of food grain is 441 grams
in FY 1997-98. During FY 1996-97 and FY 1995-96, per
capita availability was 425 and 433 grams respectively. As
per these estimates, per capita availability of food has
increased by 3.76 percent during the current financial
year, compared to the previous financial year. With a view
to stabilizing food grain prices about 1.62 lakh tons of
grain has been distributed upto May 1998 through OMS.
Moreover, to ensure fair prices to growers, target for
internal procurement of wheat has been raised to 2 lakh
metric ton from 1.3 lakh metric ton. If necessary, steps
will be taken to procure more food grain from the internal
source. Arrangements have also been made to procure maize
on an experimental basis during the current financial
year.
25. Water is indeed a resource. It is
also a source of power and water will be the future in the
21st century. Owing to lack of proper management enormous
water resources of Bangladesh has become a blessing on the
one hand and a curse on the other. Hence with a view to
achieving proper use of water resources, work has begun to
prepare a National Water Management Plan. This plan will
be completed within next three years. In the meantime,
feasibility study of the Ganges barrage has been
undertaken and work on preparation of project is under
way. Besides a project for the reexcavation of the river
Gorai has been undertaken with the assistance of the World
Bank and the governments of Netherlands and Belgium to
augment water supplies on an urgent basis in the Ganges
basin region. In FY 1998-99 an allocation of Tk 901.04
crore and Tk 118.86 crore has been proposed for agencies
under Ministry of Water Resources under ADP and revenue
budget respectively. Allocation for the development of
water resources stands at 6.54 percent of the ADP.
26. In the industrial sector private
entrepreneurs are the key players. In order to encourage
industrialization, a new industrial policy will be
announced soon. Along with increased investment in the
private sector, losses in public sector need to be
reduced. Losses in the jute sector in particular have
become a cause for great concern for the government. The
previous government spent Tk 2467.56 crore towards the
implementation of Jute Sector Reform Programme. However,
there was no perceptible benefit from this programme. The
interests of small and marginal farmers are closely linked
to jute industry. Hence inspite of weaknesses and losses
in jute industry, government support to jute sector will
continue. In 1996-97, the total loss of Bangladesh Jute
Mills Corporation (BJMC) was Tk 251.7 crore and the loss
is estimated at Tk 224.6 crore in 1997-98. Last year
government gave guarantee for Tk 250 crore to keep the
mills of BJMC running. It is not possible to issue such
guarantees every year. Moreover no such guarantee is
issued in favour of the private jute mills. Taking a
comprehensive view of the various problems in the jute
sector, I propose to provide special financial support for
the export of jute goods from next financial year. This
support will be available for both private and public
sectors. As a result, government will have to spend an
estimated amount ofTk 130 crore. Detailed instructions
regarding this support will be issued in consultation with
Ministry of Jute. I further propose to repay Tk 100 crore
against guarantee given in favour of Bangladesh Jute Mills
Corporation. In the interest of the farmers, the jute
mills will be kept running and to this end in FY 1998-99,
I have proposed total allocation of Tk 230 crore.
27. Sick industry is not unique to
Bangladesh, there are sick industries in capitalist
economies throughout the world. Inevitable laws of
capitalism render to-day's sun rise industries into sunset
industries of tomorrow. The Ministry of Industries
registered 1580 sick enterprises in 1992 and 1325
enterprises in 1996. The reasons for sickness of these
enterprises are very complex. The industries were affected
by mismanagement, political and economic instability,
rapid liberalization and unexpected shift in economic
policy. The small entrepreneurs were badly hit because
they could not afford detailed feasibility study prior to
investment. Therefore, in many countries of the world,
small entrepreneurs are provided support by the government
in various ways. In the current budget several proposals
have been made to provide assistance to small sick
industries already registered by the Ministry of
Industries. A special committee headed by a retired judge
(not below a district judge) will be set up to consider
prayer for remission of interest of those enlisted sick
industries which had borrowed upto Tk 50 lakh from the
state owned banks. Taking into account the condition of
sick industry, previous relief, if any, financial
capacity, honesty, reputation and statements of the
entrepreneur, the committee may recommend remission of
interest and penal interest upto 100 percent. The
Government will reimburse 50 percent of such remitted
interest to banks. The amount due as determined by the
special committee will be payable in three years in not
more than 36 monthly installments. Those enlisted sick
industries who borrowed more than Tk 50 lakh may submit
proposals for compromise to banks. The banks will take
appropriate decision in such cases taking into account the
bank-client relationship. Broad guidelines will be laid
down to resolve this problem on the basis of consultation
with the banks. Sponsors of those sick industries who
believe that their sick industries can be profitably
rehabilitated may submit feasibility report to the
concerned banks. The management of the public sector bank
will take decisions on these proposals on the basis of
government guidelines. Where court cases are pending, all
proceedings will be taken within the legal framework
without compromising the interest of the banks. With the
implementation of these decisions, all government
committees relating to sick industries will stand
abolished and in future all sick industries will have to
seek redress under the Bankruptcy Act. In order to
compensate the losses of banks for the implementation of
these measures, I have proposed to issue bonds worth Tk 60
crore inFY 1998-99. If needed, allocations for this
purpose will be enhanced in the future.
Mr. Speaker,
28. Honourable members may please
recall that I made the following observations in my budget
speech of 1996-97, which was delivered within five weeks
of assumption of office, on the consequences of the
failure of the previous government in making essential
investments: "The nation will have to bear the cost
of electricity, gas, water shortages arising from the
failure to make essential investments in time."
Regretfully our apprehensions have proved true. The nation
is carrying on this burden. We have taken all – out
effort to mitigate exeats to the crisis in the shortest
possible time. For expeditious exploration and expansion
of gas resources, the whole country has been divided into
23 blocks and these blocks have been offered for
investments by local and foreign investors. In the
meantime, agreements have been concluded with four foreign
companies for eight blocks. Work on eight blocks is going
on in full swing. Meanwhile in the Sangu gas field five
wells have been drilled and in Semutang field work on an
exploration well is completed. In the Sylhet region, work
on two more exploration wells is in progress. It is hoped
that by July 1998, additional 300 million cubic feet of
gas per day will be produced. Besides, negotiations are on
for signing of contract for another 12 blocks. Gas is an
invaluable resource for Bangladesh. Not only the present
generation, but also the future generations have rights
over this resource. Hence I want to give assurance to this
august House that decisions regarding production and
distribution of gas will be taken on the basis of long
term policies. In addition to the foregoing private sector
investments, the Annual Development Programme of FY
1997-98 provides for an allocation of Tk 530.46 crore for
investments in gas, oil and natural resources sectors. In
1998-99 ADP this will be raised to Tk 592 crore. Adequate
allocations have been made for Madhyapara Hardrock and
Barapukuria Coal Mining projects.
29. Installed capacity for power
generation in the country is 3091 megawatt. But available
power generation capacity is 1900 - 2000 megawatt and the
peak hour requirement is 2300 megawatt. In this
background, arrangements have been made to put into
operation 210 megawatt capacity sixth unit at Ghorashal
and 100 megawatt barge-mounted power plant at Khulna by
next August. In the private sector, agreements have been
signed in October 1997 for setting up of two 100 megawatt
barge-mounted power plants at Khulna and Haripur. In March
1998, an agreement was also signed for setting up of
another 100 megawatt barge-mounted power plant at Haripur.
It is hoped that by the first half of 1999 this power
plant will start generating electricity. In September 1997
an agreement was signed with the Rural Power Company to
set up a 60 megawatt gas turbine power plant at Mymensingh.
This plant will be commissioned in March 1999. It is
expected that soon a contract will be signed for setting
up a 450 megawatt combined cycle power plant at Meghna
Ghat in the private sector. In the revised ADP 1997-98, a
sum of Tk 1252.50 crore has been proposed for allocation
in the power sector. This allocation is 10.44 percent of
the revised ADP. In the ADP for 1998-99 total allocation
for power sector stands at Tk 1390 crore. Apart from power
generation, this allocation will be available for
investment in transmission and distribution. About 32
percent of the total allocation for power sector, that is
Tk 445 crore will be spent for rural electrification.
30. The highest allocation in both the
revised ADP in 1997-98 and ADP for 1998-99 went to
transportation sector. In the revised ADP for FY 1997-98
total allocation for Bangabandhu bridge was Tk 568.5 crore.
In FY 1998-99 total ADP allocation of this project is Tk
465 crore. Under the dynamic leadership of Prime Minister
Sheikh Hasina, Jamuna bridge which is associated with
sacred memory of Bangabandhu is nearing completion. By
formally inaugurating Bangabandhu bridge on June 23, the
Honourable Prime Minister will add a new milestone in the
history of development of our nation. World Bank, Asian
Development Bank and Government of Japan have provided
assistance for the construction of the bridge. We are
deeply grateful to them. When the present government took
over, length of all highways, regional roads and feeder
roads under the supervision of Roads and Highways
Directorate stood at 16400 km. At present total length of
these roads and highways is 20200 km. In other words 3800
km of roads were constructed or reconstructed during last
two years. The construction of Pakshi bridge will commence
shortly with the assistance of Japanese government.
Formalities for external assistance for Rupsha bridge and
Bhairab bridge will be completed soon. In the original
revenue budget of FY 1997-98 for communications sector
there was in allocation of Tk 277.69 crore. It has been
raised to Tk 315 crore in FY 1998-99. Out of this
allocation about Tk 260 crore will be spent for
maintenance of roads. In the annual development programme
of FY 1998-99 a sum ofTk 1162.66 crore has been allocated
for 87 projects of Roads and Highways Directorate. Total
allocation in ADP for Bangladesh Railway has been proposed
at Tk 426.59 crore. A sum of Tk 113.26 crore has been
proposed for inland water transport sector in FY 1998-99.
Revolutionary changes have taken place in
telecommunications. Total number of telephones in
Bangladesh in June 1996 was 3.75 lakh. It increased to
4.92 lakh in January 1998. In order to encourage the
expansion of telecommunications, a sum of Tk 337.98 crore
has been provided in the ADP for 1998-99 in the public
sector.
31. Rural roads are necessary not only
for infusing dynamism in the economy; they play a very
vital role in poverty alleviation and employment
generation. In FY 1997-98, Local Government Engineering
Department (LGED) constructed 2322 km paved road, 2404 km
unpaved road and 3294 bridges/culverts. In 1997-98, total
allocation for this organization was Tk 854.02 crore. In
FY 1998-99 ADP, a sum of Tk 1012.01 crore is provided for
LGED for constructing rural roads, markets and other
infrastructures. In the revenue budget for FY 1998-99 LGED
will receive an allocation of Tk 102 crore for maintenance
of rural roads. Furthermore, 78.6 thousand metric ton of
food grains have been allocated in favour of LGED under
Food For Work Programme in FY 1998-99 budget. Proposals
have been made to allocate Tk 200 crore for Thana
Development Assistance, Tk 115 crore for the development
of Pourashava and 3 block allocation of Tk 75 crore for
local government institutions and development of
Chittagong Hill Tracts in the ADP for FY 1998-99. A
special provision of Tk 100 crore has been proposed for
four municipal corporations. An allocation of Tk 60 crore
has been proposed for District Councils. The Union
Parishads will be allocated funds from Thana Development
Assistance and Food For Works Programme to implement their
development programmes. Furthermore, a sum of Tk 50.92
crore has been allocated for revenue expenditure of the
Union Parishads. For provision of safe drinking water,
Public Health Engineering Department has been allocated Tk
263.93 crore; Dhaka and Chittagong WASA Tk 140.83 crore.
32. Education sector is the highest
recipient of the combined allocations of the revenue
budget and the ADP. In the revised budget of FY 1997-98,
total allocation stood at Tk 4199.98 crore. In FY 1998-99
it is proposed to be raised to Tk 4596.14 crore. Total
allocation for FY 1998-99 is 9.4 percent higher than the
revised allocation for last year. We are already receiving
dividends of higher allocation in the education sector. A
survey of Primary and Mass Education Division indicates
that the rate of literacy has increased from 47 percent to
51 percent during last two years. For the first time in
the history of Bangladesh, the majority of the people are
literate. The subvention for the salaries of the
registered and aided school teachers was revised for the
first time in Bangladesh along with the revision of pay
scales of the government employees. As a special gesture,
the rate of subvention of teachers in the registered
private primary school will be revised upward next fiscal
year. National Committee on Education Policy has submitted
its recommendation for radical reforms in the education
sector. Steps have already been taken to implement these
reforms in a phased manner. In last fiscal year I proposed
special allocation for libraries and science laboratories
with a view to encouraging quality in education. This
measure was specially appreciated. In FY 1998-99 propose
to raise the allocation for libraries from Tk 2 crore to
Tk 3 crore and for scientific laboratories equipment from
Tk 3 to Tk 5 crore. Furthermore, a special block
allocation of Tk 12 crore in last year budget for
encouraging scientific research was made. The research
establishments have been specially benefited by this
measure. I therefore, propose to keep a similar allocation
of Tk 12 crore for this purpose in FY 1998-99.
33. The provision of Health services is
essential for human resource development. It is also a
constitutional right of the citizens. In the original
revenue budget of FY 1997-98, the original allocation was
Tk 786.25 crore. In the revenue budget for 1998-99, it has
been proposed to raise this to Tk 851.54 crore. In FY
1997-98, total ADP allocation for Health and Family
Welfare sector was Tk 1111.62 crore. In FY 1998-99, it has
been proposed to raise it to Tk 1373 crore. The proposed
combined allocation in revenue budget and annual
development programme for this sector in FY 1998-99 is Tk
2224.54 crore. This allocation is 17.2 percent higher than
FY 1997-98 allocation. Total allocation in health sector
is about 1.4 percent of GDP. In order to encourage higher
education in health sector Bangabandhu Sheikh Mujib
Medical University has already been set up. In the
meanwhile 4000 posts of nurses and 1296 posts of doctors
have been created in the first phase. A strategy has been
chalked out to integrate all development and revenue
activities during the period 1998-99 for the health and
family planning sector under the Ministry of Health and
Family Welfare. With the assistance of $ I billion from
the development partners a project will be launched
shortly for reforms in this sector.
34. With the assumption of office by
Bangladesh Awami League which was the standard bearer and
the embodiment of the liberation war, there has been a new
wave in the arena of sports and culture. In the original
revenue budget of FY 1997-98, total allocation for sports
was Tk 12.75 crore. An additional special allocation of Tk
12 crore has been made (including an allocation of Tk 10.5
crore in the revised budget of 1997-98) for the
installation of flood-light in Bangabandhu Stadium. Total
allocation for sports in the revenue budget has been
increased to 18.62 crore. In FY 1998-99, allocation for
sports has been fixed at Tk 40.4 crore. For youth
development a provision of Tk 63.77 has been provided in
FY 1998-99 budget. In order to celebrate the centenary of
the rebel poet Kazi Nazrul Islam in a befitting manner, I
propose to allocate Tk 20 lakh in current year's revised
budget and Tk 2.25 crore in FY 1998-99 revenue budget.
35. The freedom fighters are the source
of pride for Bangladesh. Father of the Nation Bangabandhu
Sheikh Mujibur Rahman established Freedom Fighters Welfare
Trust for rehabilitation and maintenance of wounded
freedom fighters. Unfortunately, this trust has turned out
to be an unprofitable organization owing to past
mismanagement. All welfare activities of the freedom
fighters are now dependent on government grants. For a
long time the rate of allowances for freedom fighters
remain unchanged. In order to raise the rate of allowance
of freedom fighters from 1st July 1998, I am proposing to
increase allocation under this head from Tk 6.6 crore to
Tk 9.0 crore.
36. The members of the defense forces
are indefatigable sentinels of our freedom and
sovereignty. It is our moral duty to provide adequate
resources for national defense. In the original budget of
FY 1997-98 net allocation for defense was Tk 2457.53 crore.
In the revised budget for FY 1997-98, it was increased to
Tk 2600.8 crore. In FY 1998-99, I propose to raise it to
Tk 2786.43 crore. However, it may be mentioned that the
total budget for Ministry of Defense stands at Tk 2902.27
crore including allocations for Department for
Meteorology, Survey Department, SPARRSO, Freedom Fighters'
Welfare Trust, Cadet Colleges and Defense division. This
increase in the defense budget is essential in national
interest. Total defense expenditure constitutes about 1.8
percent of GDP in FY 1998-99. Human Development Report,
1997 indicates that the average defense spending in all
developing countries in 1995 stood at 3.1 percent of GDP.
Defense expenditure as share of GDP in Bangladesh is less
than that of India (2.5 percent), Pakistan (6.5 percent)
and Sri Lanka (4.9 percent).
37. Internal security is specially
important for economic development. The allocation for
police force has been significantly increased since the
assumption of office by the present government. In the
revised budget for 1995-96 total allocation for police was
Tk 518.67 crore. In the revised budget for 1997-98 it has
been raised to Tk 646.11 crore. I propose to raise this
allocation to Tk 675.46 crore in the budget for FY
1998-99. The annual budget for police has been raised by
Tk 156.79 crore since the assumption of office by the
present government. Compared to allocation in the revised
budget of 1995-96, it has been raised by about 30 percent.
We hope that with the additional resources the Bangladesh
Police will be able to successfully complete its arduous
task.
38. The appointment of a Pay Commission
to review the pay scales of the public employees was an
election commitment of the present government. Taking into
account the recommendations of the Pay Commission a
three-phase programme for new pay scales was introduced
with effect from 1st July 1997. As a result of the
implementation of this new scale, additional expenditure
to the tune of Tk 888.41 crore including Tk 793.07 crore
in revenue budget and Tk 95.34 crore in development budget
was incurred in FY 1997-98. This will involve further
additional expenditure of Tk 495.14 crore including
development expenditure in FY 1998-99 and Tk 691.32 crore
in 1999 - 2000. In total a sum of Tk 2074.87 crore will be
spent for pay hike in three stages including pay rises in
development projects. The total requirement of new pay
scale has been included under respective heads in the
budget allocations of the ministries, no new pay scale is
equally beneficial for all groups. Benefits vary in the
process of pay fixation. However, the Government is
sympathetically considering the demands of various groups,
and a block allocation of Tk 110 crore has been proposed
for this purpose in the budget of FY 1998-99. The
expenditure on salaries has increased by 1334.64 crore in
the revenue budget and Tk 158.91 crore in development
budget in FY 1998-99 over the expenditure prior to
implementation of new pay scale.
39. Environment pollution in Bangladesh
is not a mere threat for the future generation. Polluted
environment is already a serious threat to present
generation. All-out efforts will be made for the
protection of environment. A project for the preservation
of bio-diversity in coastal areas and wetland has already
been launched. Another project with the assistance of UNDP
has been undertaken for integrated information management
on environment. A ten year master plan for forestry has
already been approved. Measures have already been taken
for the intensification of social forestry.
Mr. Speaker,
40. The budget is not about numbers.
The budget is prepared for the welfare of the people. Our
budget is a people-oriented budget. It is a budget based
on social justice. We want to empower disadvantaged
groups. We want to remove the despair of the unemployed.
We want to provide minimum safety to helpless elderly. We
want to remove the shadows of hunger and terror from the
faces of the innocent women and children. We know that all
this could not be accomplished in one go. We are,
therefore, constructing social safety net in a planned
way. We have introduced monthly allowance for four lakh
elderly poor people in current fiscal year. Honourable
Prime Minister inaugurated this programme on 31st May,
1998. We have enacted legislation for setting up
Employment-Generation (Karma Sangsthan) Bank. This Bank
will commence operations within this month. A sum of Tk 50
crore has been provided in the current year's budget as
government contribution to the Bank's capital. I propose
to provide Tk 25 crore additional allocation to this Bank
next year. A Trustee Board under the Chairmanship of
Honourable Prime Minister has been set up for operating
the Housing Fund. It has started operation with a capital
of Tk 50 crore. I propose to provide additional Tk 8 crore
to this fund in next year's budget.
41. We want to include those who are
outside the mainstream of economic activities. We want to
empower them so that they can act on their own initiative.
We want to eliminate the oppression of women and children
from this land forever. We intend to create opportunities
for the disabled to take part in the economic and social
activities. For this purpose I am proposing to establish a
Social Development Fund of Tk 18 crore in FY 1998-99.
Grants from this fund will be used for providing shelter
to shelterless women and children. In many cases women and
children cannot approach courts for justice for lack of
funds. Grants from this fund will be provided for legal
aid for women and children. Grants will also be provided
to encourage innovative projects for disabled.
42. On the job training is essential
for generation of employment. This kind of training is
essential for new entrants to the labour market.
Furthermore, it will be difficult for many of those
workers who availed of voluntary retirement to find new
jobs. I propose a special allocation of Tk 15 crore in the
next budget for encouraging on the job training. We
welcome private initiatives for similar training.
43. Poverty is our most difficult, yet
the most pressing problem. There is no instantaneous
solution for this, it will have to be resolved through a
long-drawn process. We are following a three-fold strategy
in poverty alleviation. First, we are directly
transferring resources to target groups. Total resources
to the tune of Tk 1579 crore has been earmarked in the
revenue and development budget for Food for Works, VGD,
relief and pension for the elderly in FY 1998-99.
Secondly, allocation for sectors contributing to poverty
alleviation have been increased. In FY 1998-99 a total sum
of Tk 5116.2 crore has been allocated to heads and
sub-heads related to poverty alleviation such as
agriculture, rural development, rural electricity, primary
and mass education, health and family welfare, women and
youth development, district council, thana development
assistance, Chittagong Hill Tracts etc. Total allocation
for poverty alleviation in FY 1998-99 is Tk 6695.2 crore
which is 4.1 percent higher than comparable allocation
last year. Third, micro credit programmes are being
encouraged to promote self employment for the poor. Eleven
divisions and ministries have already undertaken 25
projects for distribution of micro-credit from the
exchequer. A sum of Tk 387.86 crore has been earmarked for
distribution of micro credits through these projects.
Palli Karma Shahayak Foundation which was set up by the
Government with the assistance of the World Bank has
distributed credit to the tune of Tk 933.76 crore through
its associates in the first nine months of FY 1997-98. The
Grameen Bank with the assistance of the government have
disbursed Tk 1446.94 crore as micro credit. Other NGOs
have delivered credit of more than Tk one thousand crore
to the poor. These micro credit programmes have rapidly
created opportunities for self-employment.
Mr. Speaker,
44. The invisible hand of the market
cannot alone ensure development. The foremost requirement
for development is good governance. The urgency of good
governance is not a theoretical postulate for us, we
realized in the hard way its imperativeness through a
process of protracted democratic struggle. The present
government is, therefore, determined to establish good
governance and transparency in all walks of life.
Important measures have already been undertaken for
administrative reforms. Initiatives have already been
undertaken to appoint Ombudsman under Article 77 of the
Constitution of the People's Republic of Bangladesh. We
hope that the Ombudsman will play a significant role in
establishing transparency in our administration.
45. Economic growth is necessary but
not a sufficient condition for development. Growth is a
means and not the end of development. Development in the
true sense implies the enlargement of the capacity of the
individuals so that everybody could grow on one's own. The
poor do not want compassion, they want opportunities to
change their fate through hard work. We will have to
compete not only within the country but also in the wider
world to occupy our rightful place in the comity of
nations. In this globalized world it is not possible to
bury ones head like the ostrich. We will not be able to
survive in the globalized system if we want to remain
confined to our traditional world. We will have to think
anew. It is not sufficient to do what we are doing, we
will have to solve many problems innovatively. As the
distinguished philosopher Francis Bacon has rightly said,
"He that will not apply new remedies must expect new
evils, for time is the greatest innovator."
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