In the name of Allah, the Merciful,
the Compassionate
Mr. Speaker,
I seek your leave to place before
this august House the budget for FY 1999-2000 and
supplementary budget for FY1998-99.
2. Standing at the threshold of a
new millennium, I rise to submit to this House the
last budget in the twentieth century of the Government
of the People's Republic of Bangladesh. I am grateful
to the Prime Minister Sheikh Hasina for giving me this
unique opportunity. At this grey dawn of a new
century, we stand face to face with our past as well
as our future. Behind us lies the tumultuous and
kaleidoscopic history of the last century. The
promises and challenges of the coming century stare us
in the face. I would, therefore, start with a brief
review of recent trends in the economy of Bangladesh
against the backdrop of historical evolution. In the
next section, I propose to outline the programmes and
priorities of the present government in the light of
our vision for the future. Finally, I would present
the salient features of the revised budget of
FY1998-99 and the budget for FY 1999-2000.
Mr. Speaker,
3. Since time immemorial, the
history of the Bengalee nation is an epic of ceaseless
struggle. The emergence of Bangladesh as an
independent and sovereign country under the
charismatic leadership of Bangabandhu Sheikh Mujibur
Rahman through a process of sanguinary struggle
constitutes the most glorious chapter of this
struggle. For the first time in its history, the
Bengalee nation became the arbiter of its own destiny
by ending exploitation and deprivation of centuries. I
would like to recall with profound reverence the noble
sacrifice of the great hero of this epic struggle and
the Father of the Nation Bangabandhu, the martyred
members of his family, his colleagues and the martyrs
of our liberation struggle. However, the joy of our
greatest victory was evanescent. A poignant tragedy
was enacted in this country with the gruesome murder
of Bangabandhu. The arbitrary rule of the military
dictators systematically suspended the fundamental
rights of the people. The electoral process was
rendered into a farce. Murders, coups and
conspiratorial politics supplanted the practices and
values of democracy. The stagnation of the economy was
an inevitable outcome of this sterile politics.
Mr. Speaker,
4. The government under the
stewardship of Prime Minister Sheikh Hasina restored
democratic rights of the people after long twenty one
years. The Ganges Water Treaty and the Chittagong Hill
Tracts Peace Accord have today created in Bangladesh
an environment of peace and development. The
conclusion and implementation of Chittagong Hill
Tracts Accord without the mediation of a third party
has earned accolade both at home and abroad. The award
of UNESCO peace prize to Prime Minister Sheikh Hasina
is an international recognition of her matchless
success. By trying the assassins of Bangabandhu
through the normal process of law, the nation has been
absolved of the pangs of conscience. The construction
of Bangabandhu Jamuna Multipurpose Bridge over the
immense flows of the turbulent Jamuna constitutes a
new milestone in the development of infrastructure in
this country. A new sense of confidence has been
instilled in the minds of people and an optimistic
climate about the potentialities of the future has
been created. These bold political measures galvanized
economic life. With the assumption of office by the
present government, a new horizon of immense
potentialities opened up in the economic sphere; it
infused new life in the economy. Surpassing all
previous records, economic growth accelerated
significantly for two consecutive years. If the
proposed measures in the budget for FY 1998-99 were
implemented, the growth in economy of Bangladesh in
the current year could have further accelerated.
Unfortunately, the country experienced a devastating
flood from July to September in1998. This flood is not
only the longest in our history, it also inundated the
largest area. The average flood-affected area during
floods from 1954 to 1996 stood at 20.56 percent of
total land in the country. During 1998, 68 percent of
land was flooded. In other words, the extent of flood
in 1998 was three times larger than that of an average
flood. 53 out of 64 districts were inundated, about 31
million people were marooned, fifteen thousand
kilometres of roads were damaged, thousands of bridges
and culverts were destroyed, about half a million
houses were washed away and about 14 thousand
educational institutions became unsuitable for normal
use. According to estimates of Asian Development Bank
and Bangladesh Institute of Development Studies, flood
losses constituted about 6 percent of Gross Domestic
Product. At this crucial juncture of our history.
Prime Minister Sheikh Hasina came forward with
indomitable courage and unflinching determination.
There silence, determination, promptitude and courage
displayed by the people and government of Bangladesh
in meeting the challenge of relief and rehabilitation
under the dynamic and bold leadership of Sheikh Hasina
will remain forever inscribed in golden letters in the
annals of Bangladesh. I would like to express our
gratitude to Almighty Allah for providing courage and
strength during this extraordinary ordeal. I would
also like to place on record our sincere appreciation
to multilateral and bilateral donors who extended
liberal assistance in time of distress. The timely
assistance in food and cash provided by development
partners played an important role in flood
rehabilitation. Bangladesh has earned international
recognition for skill and success in disaster
management by proper utilization of aid from abroad.
5. With the outbreak of flood, the
entire civil administration was deployed in relief
operation. More than a million people were housed in
2716 shelters and more than four thousand medical
teams were sent to flood-affected areas. In the first
phase of the flood, gratuitous relief to the tune of
70 thousand M.T. of food-grains were distributed.
Vulnerable Group Feeding (VGF) Programme was
introduced in August 1998 and this programme was
gradually expanded. It covered four million families
in October 1998. From November 1998 to April 1999, the
coverage of VGF was extended to 4.2 million families
comprising about 20 million people (providing food
relief for five months excluding the month of
February). The total outlay on flood relief exceeded
taka ten billion including an additional allocation of
taka 5.82 billion. Because of large-scale relief
operation, the apprehensions about massive migration
from rural to urban areas did not a tall materialize.
Furthermore, NGOs and civil society made commendable
contribution to relief operations. An allocation of Tk.
250million was provided for house building grant to
half a million affected families. 888 thousand
landless, small and marginal farmers were provided
inputs for agricultural rehabilitation at a cost of Tk.
300 million. The timely distribution of fertilizer and
fuel was ensured. A sum of about Tk. 26 billion was
disbursed as agricultural credit till 30 May 1999
through two agricultural banks, nationalized
commercial banks and cooperatives; the disbursement of
farm credit in the corresponding period last year was
Tk. 14 billion only. In other words, the disbursement
of agricultural credit was raised by about 86 percent.
The successful implementation of agricultural
rehabilitation programme contributed to record harvest
of wheat and boro rice. Furthermore, physical
infrastructure including roads and highways were
repaired with utmost rapidity with a view to restoring
normalcy in economic life.
Mr. Speaker,
6. During the current fiscal year,
Bangladesh faced not only an unusual natural calamity
but also an adverse economic climate in the
international arena. As the latest World Economic
Outlook (May 1999) of International Monetary Fund puts
it, a new phase in the global crisis" has
started. In 1997, world GDP increased by 4.2 percent.
In 1998 it decreased to 2.4 percent. Latest
projections suggest that world GDP growth in 1999could
be as low as 2.3 percent. In the developing countries,
growth rate stood at 5.7 percent in 1997. It fell to
3.3 percent in1998. It is expected to decline further
to 3.1 percent in 1999.The growth of world trade has
decelerated because of economic stagnation. In 1997,
world trade grew by 9.9 percent. It stood at 3.3
percent in 1998. It is expected to edge up to 3.8
percent in1999. The contagion effect of South East
Asia, Latin America and Russia continues to cast dark
shadow in the international economic sphere.
Furthermore, some industrial countries are also likely
to experience economic recession.
7. The effects of unprecedented
natural disaster and unfavourable economic climate
were reflected in the economy of Bangladesh.
Nevertheless, with the blessings of Almighty Allah and
efficient economic management, economic growth rate in
Bangladesh in the current year is much more robust
than that of other developing countries. According to
latest preliminary estimates (May 1999) of Bangladesh
Bureau of Statistics, GDP in 1998-99 grew at the rate
of 5.2 percent inconstant price. Growth rate stood at
5.7 percent in 1997-98. By achieving growth rate
exceeding five percent for three consecutive years,
the Government of Sheikh Hasina has added a new
chapter in the history of economic development of
Bangladesh. Incidentally, Bangladesh never experienced
such high growth rate in the wake of a devastating
flood. Bangladesh economy grew by 2.9 percent in
1987-88; by 2.5 percent in1988-89. The sluggishness of
growth in these years is attributed to effects of
floods. However, despite prolonged catastrophic flood
lasting from July to September 1998, the economy
bounced back to normalcy due to effective
macro-economic measures, resulting in 5.2 percent
growth in GDP. This is 67 percent higher than the
expected average growth rate in developing countries.
Despite the devastating flood in 1998, the average
growth rate during last three years since the
assumption of office by the present government exceeds
5.5 percent, whereas the similar rate during the
period 1975-76 to 1995-96 was 3.7 percent only. A
major source of growth in the current fiscal year is
the remarkable success of rehabilitation programme of
the government in the agricultural sector. There
corded highest boro production in the country was
8.137million M.T. According to preliminary estimates
of Bangladesh Bureau of Statistics, boro production in
the current year stands at 10.05 million M.T. Total
production of wheat is estimated at2 million M.T. -
exceeding the highest record of 1.803 million M.T.
Despite a shortfall of about 1.172 million M.T. in Aus
and Aman production, production of crop sub sector is
projected to grow by 4.3 percent. The growth in
agriculture sector as a whole will climb to 5 percent
because other sub sectors of agriculture such as
livestock (7.6%) and fisheries (8%)experienced higher
growth rate. The highest growth is projected in the
mineral resources sector (21.5 percent). The growth
rate in manufacturing sector will be limited to 2.5
percent owing to ravages of flood. The construction
sector is expected to grow by 6.5 percent;
transportation sector by 6 percent.
Mr. Speaker,
8. During first two quarters of the
current year, there was an upward pressure in food
prices owing to flood. The inflation in April based on
the average monthly inflation rates of last twelve
months (May 98 - April 99) stands at 8.79 percent.
This rate is comparable to average inflation rate
(8.8%) in developing countries in 1999. During the
corresponding period last year the inflation was 6.63
percent. Between April 98 and April 99, food prices
grew by 9.78 percent, non-food prices by only 3.64
percent. There was a steady increase in prices from
July 98 to December 98 owing to damages caused by
flood. Fortunately, prices experienced consecutive
declines from January 1999 to April 1999. Prices in
December 1998 rose by12.67 percent in comparison with
in December 1997.After the new harvest, inflation rate
1999 increased by only 7.65 percent compared to
corresponding period in the previous year. It is
projected that this downward trend continue in the
coming months thanks to bountiful harvest of boro,
wheat and potato.
9. A moderately expansionary
monetary policy was pursued to ensure adequate flow of
credit so that economic activities do not suffer and
dynamism in the economy is not eroded. Six months
moratorium was allowed on industrial and export loans
which became overdue during flood and special loans
were given on priority basis to affected industries.
Farmers were given new loans by rescheduling arrear
debts. As a result, the supply of both narrow and
broad money increased. During the period April 98 to
March 99, narrow money supply (M-l) increased by 9.12
percent compared to 7.12 percent in the corresponding
period last year. In the same period, broad money
supply (M-2) grew by 13.06 percent, while it increased
by 9.47 percent in the corresponding period of last
year. Annual growth of domestic credit during the
period April 98 - March99 stood at 16.84 percent, the
corresponding rate in last year was 11.94 percent.
Furthermore, Bangladesh Bank advanced special loans to
the tune of almost Tk. 9 billion to specialized banks
and Grameen Bank.
Mr. Speaker,
10. On 31st May 1999,
foreign exchange reserve in Bangladesh Bank was $1.514
billion. The corresponding figure on 31st
May last year was $ 67 billion. In other words,
foreign exchange reserve fell by about $156 million
during last twelvemonths. The present reserve is
adequate to meet 2.3 months import requirements and it
is satisfactory at the moment. The fall in foreign
exchange reserves is not in the least unexpected in
the backdrop of devastating flood. During the first
half of the current fiscal year import of food grains
rose dramatically in view of wide-spread losses to Aus
and Aman. Last year private sector imports of food
grains stood at 1.149 million M.T. During the current
fiscal year, private sector import of food grains has
increased so far to 3.055 million M.T. The target of
food import by the government from its own resources
was 350thousand M.T. this target was raised to I
million M.T. in view of flood. However, actual
government imports so far stand at756 thousand M.T.
According to estimates of Bangladesh bank, total bill
for additional food import in the current year is
about $ 733 million. Because of the pressure on the
reserve situation, the government took loans of $ 38
million from the IMF and $ 200 million from IDA for
emergency imports.
11. The growth of exports from
Bangladesh decelerated in view of flood and
unfavourable international economic climate. During
first ten months of the current fiscal year, exports
increased in dollar terms by 2.99 percent in
comparison to total exports in the corresponding
period last year. It is expected that exports will
pick up in the remaining two months of the current
fiscal year. The growth rate of export from Bangladesh
is slightly higher than that (2.2%) of developing
countries. Exports of manufactured goods suffered
because of flood. Furthermore, the price of primary
exports plummeted. The price of raw jute fell by 34.06
percent; leather by 38 percent: tea by 2.84 percent
and frozen shrimp by 13.74 percent. On the contrary,
imports during the first seven months registered a
growth of 7.7 percent compared to the corresponding
period last year.
12. Bangladesh Bank has pursued a
realistic and flexible exchange rate policy with a
view to maintaining export competitiveness and to
consolidating the value of the Taka. For a long time,
the exchange rate is determined on the basis of real
effective exchange rate as calculated on the basis of
daily data. So far Taka has been devalued in dollar
terms by 4.54 percent in the current year. The rate of
devaluation during 1996-97 and 1997-98 was
respectively 4.35 and 5.7 percent. It may be mentioned
here that neighbouring countries in South Asia also
experienced similar devaluation. Because of proper
management of exchange rate, remittances from
expatriate citizens increased. Total remittances from
the nationals abroad in last fiscal year stood at
$1.433 billion. During first nine months of current
fiscal year, total remittances have been estimated at
$1.242 billion which is 8.52 percent higher than
remittance in the corresponding period last year.
According to estimates of Bangladesh Bank, direct
foreign investment in Bangladesh during first six
months of current fiscal year went up by 46 percent
compared to corresponding period last year.
Mr. Speaker,
13. I have so far reviewed the
recent trends in the economy of Bangladesh. From the
above analysis, it appears that we have succeeded in
absorbing the shocks of 1998 flood ravages without
disturbing macroeconomic stability owing to restrained
and carefully planned management of the economy. Now
we will have to look forward to the future and face
courageously the challenges of the twenty first
century. Rapid technological change and globalization
of economic system have triggered complex
transformation in political and economic life. But all
changes are not conducive to developing countries. So
we must not be swept away by changes. On the other
hand, it is not possible to resist many changes. It
is, therefore, counterproductive to attempt to stall
such changes. We will therefore, have to establish our
control and direction over the scope and speed of the
process of change and reform. The distinguished
philosopher Alfred North White head rightly observed:
the art of progress is to preserve order amid change
and to preserve change amid order.
14. From the demographic point of
view, Bangladesh is the ninth largest country in the
world. Neither natural resource nor financial capital
is her greatest asset, ft is the people who
constitutes the most precious resource. The
development of human resources is the key to economic
development in Bangladesh. The real difference between
developing and developed countries lies not in the
volume of capital but in the knowledge gap. No nation
can compete in the world today without appropriate
education. The extension of education and health
services not only benefits the recipients but also
creates a productive environment in the society as a
whole. Since its assumption of office, the present
government has given highest priority to education.
The present government has mobilized all possible
resources to implement Sheikh Hasina's epochal
declaration to banish illiteracy from the country. We
are however, conscious of the fact that quantitative
expansion of education is not sufficient, qualitative
standard of education has to be upgraded. In pursuance
of Bangladesh Awami League selection manifesto, a new
education policy has been formulated in the light of
the report of Qudrat-e-Khuda Commission. The new
education policy will be implemented in phases taking
into account the financial limitations of the
government. The management in the education sector
will be radically restructured with a view to
implementing new education policy. A five year Health
and Population Sector Programme at a cost of Tk. 14
thousand crore has been launched with the assistance
of development partners. The government, after
assumption of office, has approved new health policy.
This policy will also be implemented in phases.
However, the demands in the health and education
sector are so enormous that the government alone
cannot meet all the requirements. Measures have
already been undertaken to involve the private sector
and civil society inhuman resource development.
Mr. Speaker,
15. The inward-oriented policies
have become anachronistic in the context of the
globalise world today. By pursuing outward-oriented
policies we will have to encourage our exporters to
create market for their products on the basis of
competition. Meanwhile, trade has been liberalized in
phases. Because of weaknesses in infrastructure and
procedural complexities, there are still many
impediments to exports. Considering these problems,
the existing financial incentive for using domestic
raw materials in ready made garments will continue.
The special assistance on manufactured jute goods at
the rate of ten percent will be extended to current
fiscal year. Considering the importance of leather
industry in national economy and the potentialities of
this sector, I propose to provide ten percent ad
valorem assistance to selected finished leather
products including shoes and handbags. Similar
facility will be extended to quilts made with domestic
materials. I also propose to provide similar
assistance to exporters of fresh and artificial
flowers. I propose to allocate a sum of Tk. 561 crore
for subsidy and financial assistance to exports in FY
1999-2000. Furthermore, an export diversification
project has been undertaken with the assistance of
World Bank and DFID. Under the project, the exporters
of non-traditional products maybe have given
assistance up to fifty percent of the costs for
promoting the market for their products. The total
outlay of this project, which will be implemented in
next three years, is Tk. 223 crore. We hope that
export sector will experience new dynamism in view of
the facilities given by the government.
Mr. Speaker,
16. Private sector has been
identified as the engine of growth in the Fifth Five
Year Plan approved by the government. According to
projections of the Planning Commission, 56 percent of
investment during the Fifth Plan period will originate
in the private sector. The rapid privatization of
state owned enterprises is an essential condition for
promoting private sector investment. The privatization
process in Bangladesh will have to be speeded up not
only for encouraging new investors but also for
reducing the liabilities and financial losses of the
government. An analysis of revised budget of statutory
public authorities excluding financial institutions
indicates that in FY1998-99 seventeen statutory public
authorities incurred losses to the tune of Tk. 1345.3
crore and 21 authorities earned Tk. 482.6 crore. In
order to reduce the burden of accumulated losses
stemming from mismanagement, it is essential to
accelerate the process of privatization. The
Government has advanced Tk. 1 14 crore as loan for
paying the dues of workers of three textile mills and
Chittagong Steel Mill which are proposed to be closed.
A new draft law has already been prepared to
strengthen Privatization Board. The procedures for
privatization have been simplified in the light of
last few years experience and a procedure for separate
sale of excess land owned by the enterprises has been
introduced. The over due loans of banks are mounting
owing to losses incurred by state-owned enterprises.
The Government will have to accept these liabilities
ultimately. A phased programme is being drawn to repay
the overdue loans of state owned enterprises. As a
first step, I propose to earmark Tk. 150 crore in FY
1999-2000 budget for repayment of overdue loans of
banks. Furthermore, Bangladesh Jute Mills Corporation
is facing an acute financial crisis in view of its
accumulated losses. I, therefore, propose to provide a
loan of Tk. 100 crore to Bangladesh Jute Mills
Corporation for purchase of jute.
17. The acceleration of private
investment is one of the objectives of the government.
We have noticed that since the assumption, of office
by the present government, direct foreign investment
in Bangladesh has increased significantly. From are
port of the World Bank it appears that FDI in 1994-95
stood at $83 million. It increased to $297 million in
1995-96. This is projected to reach $807 million in
1998-99. 65 percent of this investment will be
confined to infrastructure sector, 35 percent will be
invested in other sectors. From a survey of Finance
Division, it appears that domestic investment in
industrial sector has been rising during last two
years. In 1996, banks and financial institutions
disbursed long term loans for new industries to the
tune of Tk. 797.5 crore. The similar figure for1997
was Tk. 1029.7 crore; in 1998, Tk. 1144 crore.
However, disbursement of industrial credit from
specialized banks is not satisfactory because of the
accumulated bad debts of the past. It is not possible
for commercial banks to provide on a large scale
long-term credit from short-term deposits. In order to
encourage investment in the industrial sector, three
special measures have been undertaken. First, Agrani
bank has been permitted to float a govt. guaranteed
bond of Tk. 500 crore to mobilize resources for
industrial investment. Second, Sonali bank will sell
government guaranteed bonds to the tune of $100
million to expatriate Bangladeshis. The proceeds of
the bonds will be invested in industrial undertakings
under the overall supervision of Bangladesh Bank. They
will not be confined to nationalized commercial banks
alone but other eligible banks and financial
institutions will also be allowed to participate in
this programme. If this experiment of long term credit
through bond turns out to be successful, initiatives
will be taken for selling more bonds. Thirdly, a
project for the development of financial institutions
at a cost $46 million has been undertaken with the
assistance of the World Bank. This project will
provide $40 million for investment in industrial
undertakings through financial institutions.
Furthermore, initiatives have already been taken for
resolving the problems of sick industries. A special
committee set up as per the decision announced in the
budget for FY 1998-99 has already settled about 400
cases of sick industries and recommended for the
remission of interest to the tune of Tk. 150 crore.
The term of the committee will be extended for a year
and all the pending applications of sick industries
are expected to be disposed-of by 30'h June, 2000.
Mr. Speaker,
18. An efficient intermediation
system for converting savings into investment is an
essential prerequisite for private sector development.
Unfortunately, unacceptable levels of classified loans
have crippled banks and financial institutions in
Bangladesh. Because of high percentage of defaults,
banks charge high interest rate. This discourages
investment in the country in general and new investors
in particular. Loan defaults have created an
environment of mistrust in the financial sector.
However, default culture was not created in a day. We
have in herited this problem from previous
governments. What Justice Earl Warren said about crime
is equally applicable about default loans: "the
crime problem is in part an overdue debt that the
country must pay for ignoring for decades the
conditions that breed lawlessness". If the
previous governments had taken action against defaults
in time, this problem would not have arisen at all.
The real story behind origins of the default culture
is not unknown to the nation. This originated during
the martial law period. The military dictators
sanctioned loans indiscriminately with a view to
luring new supporters. The whole nation is now
required to compensate for these misdeeds. However,
bank management is also partly responsible for this.
This is why, the present government since its
assumption of office has pursued a deliberately
cautious policy in sanctioning term loans. According
to an estimate of Bangladesh Bank, the percentage of
classified loans in total term loans sanctioned since
1996 is about 9 percent whereas the similar ratio for
loans sanctioned before 1996 is as high as 40percent.
This clearly indicates that reforms initiated by the
government in economic and banking sectors are
yielding positive results. With a view to taking
effective actions against loan defaulters, Money Loan
Court Act has been amended and the Bankruptcy Act has
been enacted. Five new exclusive courts have been set
up to try cases regarding money loan and bankruptcy in
Dhaka and Chittagong metropolitan areas. A high-level
task force has been set up in each nationalized
commercial bank and Bangladesh Bank to monitor
classified loan. Laws relating to loan defaults have
been examined and new amendments to these laws will be
proposed shortly. The deposit insurance system is
being streamlined. Bangladesh Bank has been given more
powers for effective supervision of banks. Bangladesh
Bank will be reorganized as an effective and strong
institution with a view to restoring discipline in the
financial sector.
19. Parallel to financial sector
reforms, capital market needs to be consolidated. All
transactions in both the stock exchanges of the
country have been computerized. A law has been enacted
for establishing a central depository system. It is
expected that the central depository will start
functioning soon. The Trust Act will be amended
shortly to permit investment of different types of
funds in the capital market. The strengthening of the
regulatory authority will boost the confidence of the
investors in the capital market.
Mr. Speaker,
20. The most difficult and complex
task confronting Bangladesh Government in the twenty
first century is poverty alleviation. The recent
surveys on poverty indicate that about half of the
population is still below poverty line. However, the
most encouraging fact is that the percentage of the
poor is declining. According to a recent survey of
Bangladesh Bureau of Statistics, the percentage of the
poor in rural areas declined from 47.9 percent in
April 1996 to 47.6 percent in April 1998:in urban
areas from 44.4 to 44.3 percent. The per capita
calorie intake in both rural and urban areas has
increased in recent years. During the period December
1995 to April 1998, percapita calorie intake has
increased from 1885 kilo calorie to1953 kilo calorie
in rural areas; in urban areas from 1895 kilocalorie
to 1959 kilo calorie. Despite encouraging trends in
certain areas, the percentage of poor in Bangladesh is
not at all acceptable.
21. The poor may be apparently
similar, but the nature of poverty varies from group
to group. There is no single prescription for poverty.
The exact solution of poverty depends on its nature.
An important strategy of the government in poverty
alleviation is not to follow a uniform policy for all
poor but to adopt separate programmes for different
target groups. Obviously, human resource development
is a precondition for poverty alleviation. However,
the benefit of human resource development is primarily
confined to moderate poor; the ultra poor may not
benefit from such programmes. The ultra poor cannot
participate in the mainstream of economic life without
direct assistance from the Government. This is why
direct food aid is distributed to the distressed
through V.G.D, V.G.J Food for Works and Test Relief.
Since FY 1997-98, pension for the poor senior citizens
have been introduced. This programme benefits about
403 thousand distressed people. Surveys indicate that
widows and deserted wives constitute a significant
portion of the ultra poor. There is no separate
programme for this group. Under instructions from
Prime Minister Sheikh Hasina, who is a sincere
champion of the destitute, it has been decided to
launch a new programme for the distressed widows and
deserted wives. I propose to allocate a sum of Tk. 25
crore for this programme in the budget for FY
1999-2000. In pursuit of poverty alleviation, such
programmes of direct assistance will be consolidated
and expanded.
22. Providing food alone is not
sufficient for the poor. There is also an acute
shortage of shelters for the poor. Unfortunately the
housing problem of the poor was totally ignored before
the assumption of office by the present government. A
project named "Asrayan" has been undertaken
on the personal initiative of Prime Minister Sheikh
Hasina. Fifty thousand homeless families will be
provided accommodation under this project. Further
more, micro-credit and training will be provided for
creating employment for the beneficiary-families. In
accordance with the decision announced in the budget
of 1997-98, Housing Fund has already been established.
The government has already sanctioned Tk. 58 crore as
grant for this fund. The Housing Fund has already
disbursed Tk. 19 crore for concessional loan for house
building for the poor and proposals for further
sanction of Tk. 21 crore are under process. It is
expected that about twenty thousand houses for the
poor will be constructed with grants and loans from
Housing Fund within one year. I propose to allocate Tk.
15 crore for Housing Fund in the budget for FY
1999-2000. Furthermore, the Government departments
have undertaken ambitious programmes for
micro-credits. Twelve ministries administer
micro-credit programmes. So far Tk. 2035 crore has
been disbursed in these programmes. The rate of
recovery is about 96 percent. These programmes
primarily cater to the needs of the ultra poor in the
rural areas. They are not suitable for the educated
youth who are now jobless and are likely to swell the
ranks of the ultra poor. This is why 'Karma Sangsthan
Bank (Employment Bank) has been established as a
statutory public authority with a paid up capital of
Tk. 75 crore from the Government. Branches of this
bank have already been established in all divisional
headquarters. A programme has been drawn up to set up
branches of 'Karma Sangsthan Bank in all district
headquarters. Furthermore, the concerned ministries
are expanding their programmes for the youth and
women.
23. The Government alone cannot
solve the complex problems of poverty. The present
government therefore welcomes the initiatives of NGOs
and civil society in alleviation of poverty. The
government has already established Palli Karma
Shahayak Foundation with a view to assisting primarily
small NGOs. A survey of the World Bank indicates that
NGOs have distributed micro-credit to about 8 million
people. Micro-credit not only generates employment but
also contributes to empowerment of women. Though
micro-credit programmes have turned out to be
successful, there are some weaknesses in the NGOs as
financial institutions. The monitoring of the
financial performance of these institutions will have
to be intensified for removing these weaknesses. The
standard and procedure for such monitoring will be
prescribed in consultation with Bangladesh Bank and
NGOs.
Mr. Speaker,
24. Neither economic development
nor poverty alleviation is feasible in the absence of
good governance. The distinguished sociologist Anthony
Giddens rightly observed that "democratization of
democracy" is a precondition for good governance.
With a view to democratizing democracy we must
decentralize. Bangabandhu had similar vision. He
rightly said, "I do not want to concentrate
constitutional power in Eden Buildings or Gano Bhavan.
I want to delegate it to villages, thanas, unions and
districts so that people get the benefits. Following
the trails blazed by Bangabandhu, the present
government has already undertaken measures to
strengthen local government. Strong local government
at union level has already been established. Despite
various odds, the elections of Pourasab has have been
successfully completed. Elections to Upazilla and
Poura Corporations will be held in the near future.
The Administrative Reforms Commission has already
ysubmitted 20 interim reports for streamlining
administration. Aproject with the assistance of the
World Bank has been undertaken for judicial reforms.
Mr. Speaker,
25. I would now present the salient
features of the revised budget for FY 1998-99. The
unprecedented flood exerted two types of pressures on
the fiscal management. First, Govt. revenues declined
as the economic activities were interrupted by flood.
Secondly, government expenditure on relief and
rehabilitation significantly shot up. The government
took three measures to restore fiscal balance. First,
surcharges were imposed to augment revenue. Secondly,
allocations for contingency expenses were cut by ten
percent. Finally development partners were requested
to augment assistance. Total receipts from foreign aid
was estimated at Tk. 7382 crore in the original budget
for FY 1998-99. It has been raised to Tk. 8188 crore
in the revised budget. Despite the increase in foreign
aid, total available resources declined as a result of
shortfall of Tk. 1076 crore in revenue receipts. On
the other hand, the revised expenditure in revenue
budget increased by Tk. 828 crore compared to the
original estimates inspite of austerity measures
mainly because of higher allocations for relief,
interest on domestic debt, financial assistance for
using local materials in ready made garments and
pension. The size of Annual Development Programme
(ADP) was raised by Tk. 400crore for providing
allocation for rehabilitation purposes. On the whole,
there might be a deficit of Tk. 1465 crore which would
be financed by borrowing from banks. Usually, such
deficits contribute to inflation. However, there was
idle and unused capacity in various sectors in the
wake of flood. Increase in government expenditure in
such circumstances contributes to higher production
Further more, there is already a downward trend in
inflation because of record wheat and boro harvest. As
a result, the harmful effects of the deficit in the
revised budget will be very limited. The deficit on
the other hand, has not only alleviated the sufferings
of distressed humanity but also proved to be conducive
to growth and macro stability. In fact, by increasing
government expenditure and ensuring timely investment
and increasing the flow of agricultural credit, we
have succeeded in restoring normalcy in the economy in
the quickest possible time.
Mr. Speaker,
26. Total revenue for FY 1999-2000
has been estimated at Tk. 24151 crore. It is 22.5
percent higher than the revised budget target.
Compared to the original target in FY 1998-99, the
revenue target for FY 1999-2000 is 16.2 percent
higher. Total revenue expenditure for FY 1999-2000 has
been estimated at Tk. 17800 crore. This allocation is
11.7 percent higher than the original allocation in FY
1998-99 budget and6.2 percent higher than the revised
allocation. It may be mentioned here that allowances
for the government servants will be increased in FY
1999-2000 in accordance with a previously announced
government decision. This alone will require an
additional allocation of Tk. 680 crore in revenue
budget (excluding development project). It is
estimated that Tk. 115 crore will be required for
upazila election and preparation of voter list. An
additional allocation of Tk. 230crore will be required
for special assistance for exports. Further more, the
expenditure on pension will increase by Tk.384 crore
compared to original estimates in FY 1998-99.
Excluding these four additional allocations, revenue
budget for FY 1999-2000 increased by 3.1 percent
compared to original revenue budget for 1998-99. This
growth is much lower than the rate of inflation.
27. Total allocation for Annual
Development Programme in FY 1999-2000 is proposed to
be fixed at Tk. 15500 crore. This allocation is 13.9
percent higher than the previous year's original
target and 10.7 percent higher than the revised
target.49.5 percent of total outlay of ADP will be
provided from external resources; 50.5 percent from
the domestic sources. Total external assistance has
been estimated at Tk. 7667 crore.83.8 percent of aid
will be provided in the form of project assistance; 12
percent in the form of commodity assistance and 4.2
percent as food aid. Compared to original target in
last year's budget, external aid is projected to
increase by about 3.8 percent. Globally external
assistance as a whole is declining in view of
unfavourable developments in the world economy. Viewed
in this context, the growth rate of foreign assistance
in Bangladesh is really encouraging.
Mr. Speaker,
28. In line with Bangladesh Awami
League's election manifesto, highest priority has been
given to education sector in the revised budget for FY
1998-99 and the budget for FY 1999-2000. Before the
present government assumed office, total allocation
for education sector in FY 1995-96 was Tk.
3521.93crore. In 1999-2000 FY, I propose to raise this
allocation to Tk. 5149.28 crore. Within three years of
assumption of office by the government headed by Prime
Minister Sheikh Hasina, annual allocation for the
education sector is proposed to be raised by about Tk.
1627 crore. Compared to 1995-96, total allocation for
education sector has been raised by about 46 percent.
In the revised revenue budget of FY 1995-96 total
allocation for education was Tk. 2151.45 crore, it has
been raised to Tk. 3220.16 crore in FY 1999-2000.
Two-thirds of the increased allocation in education is
required for higher salaries and for new teachers.
About two thousand primary schools were understaffed
with sanctioned strength of either one or two
teachers. After the present government took over, at
least three posts of teachers have been sanctioned for
all primary schools. Steps have been taken to fill up
the vacant posts of teachers. Meanwhile, projects for
rehabilitation of twenty thousand primary schools and
ten thousand secondary schools damaged by flood are in
the process of implementation. With the assistance of
NGOs, 100 new primary schools will be set up in
villages where there is no school. The allocation for
books and science laboratories has been gradually
increased since the present government came to office
2.9 million female students will be given stipend in
1999. The National Curriculum and Textbook Board is
implementing a project for development of English
language teaching with a view to upgrading the
standard of English education. Vocational course at
S.S.C. level has been introduced in 200 non-government
schools with the objective of encouraging technical
education. Measures have already been taken for the
establishment of 16 poly technic institutes, 13
vocational institutes and 12 science and technology
universities. With the expansion of scientific and
technical education, there has been rapid increase in
the application of information technology in the
country. Exemptions and concessions in respect of
duties and taxes have already been given to boost
computer-based exports. Large scale training
programmes have been undertaken for government
officers and staff through various projects. The
system of advance for the purchase of computers has
been introduced to encourage public servants in using
computers.
29. In FY 1995-96, total allocation
in revenue and development budget for health and
family welfare sector stood at TL 1611 crore. In
1999-2000, I propose to raise the combined allocation
for health sector in revenue and development budget to
Tk. 2519.53 crore including an allocation of Tk.
990.20 crore in the revenue budget and Tk. 1529.33
crore in the development budget. Compared to1995-96,
total allocation in this sector will increase by Tk.
908.53 crore which amounts to an increase of 56
percent 4000 posts of nurse were created to improve
the standard of health services. Two thousand nurses
have already been appointed and the rest will be
appointed in FY 1999-2000. The government has already
appointed 1332 physicians through the Public Service
Commission. Furthermore 1295 new posts of physicians
have been created. With a view to providing health and
family welfare services at the doorstep of the people,
a project for the establishment of 18 thousand
community clinicsis now being implemented. One hundred
health and family welfare centres were constructed in
the current year, another one hundred centres will be
constructed in the next fiscal year.
Mr. Speaker,
30. The development of human
resources is a necessary but not a sufficient
condition for economic development. Human resources
cannot be harnessed in the absence of an effective
physical infrastructure. Specially, it is not possible
to raise production by using modern technology unless
the supply of electricity is ensured. In the election
manifesto of 1996, Bangladesh Awami League pledged :
"Through its wide spread extension in rural
areas, electrification will be the basis of economic
development and modernization". In accordance
with our promise in the election manifesto, we have
increased the effective generation capacity in the
country. In 1995-96 effective generation capacity in
the country was 2105 MW it has been raised to 2500 MW
in 1998-99. In 1994-95, per capita electricity
production was 92 kwh, in 1997-98 it has been raised
to 107 kwh. Because of the increase in demand for
electricity we could not bridge the gap in electricity
supply which we inherited as a result of the failure
of the previous government. In the current fiscal
year, one 100 MW barge mounted generation plant in the
private sector has started commercial production in
Khulna, 6 unit at Ghorasal with a capacity of 210 MW
has been commissioned. In 1999 one generation plant
with a capacity of 70 MW in Mymensingh, one with 100
MW capacity in the private sector at Baghabari and
another with 100 MW capacity at Haripur will be
commissioned. For the long-term development of the
power sector, the Govt. is pursuing a three-fold
strategy. First, government investment in the
powersector has been increased significantly. In the
revised development budget of 1998-99, the allocation
for electricity sector was Tk. 1363.42 crore. In FY
1999-2000, I propose to raise this allocation to Tk.
1770 crore. Secondly, private sector investment in
power sector has been encouraged. Because of the
policies pursued by the government, total private
sector investment in power sector during the period
1997-98 to 1999-2000 is expected to be around $566
million or about Tk. 2700crore. Thirdly, management of
power sector is being radically restructured. Three
separate organisations have been set up for
electricity generation, transmission and distribution
on commercial basis. Dhaka Electricity Supply
Authority was setup in the first stage. In order to
restore discipline in distribution system, Dhaka
Electric Supply Company (DESCO) has been registered
under the Companies Act for distribution of
electricity in Mirpur of Dhaka Metropolitan area. The
PowerGrid Company of Bangladesh (PGCB) has been
constituted to take over the responsibility of
transmission of electricity and it has started its
operation. It is expected that the newly created
environment of competition will contribute to sound
management of electricity sector in the near future.
31. Because of the policies pursued
by the government, private investment has also been
attracted to natural gas and telecommunication
sectors. Total foreign investment in gas sector in
1994-95 was only $14 million; during the period1996-97
to 1999-2000 it will stand at $632 million. Further
more, with a view to encouraging exploration and
extraction of mineral resources in the country,
government investment in the gas sector has been
increased. In revised development budget for FY
1998-99, the allocation for this sector is Tk. 556.86
crore. I propose to raise this allocation to Tk. 670
crore in FY 1999-2000. According to estimates of World
Bank, telecommunication sector received foreign
investment of $70 million since the assumption of
office by the present government and there will be
additional foreign investment of $10 million in
1999-2000. I propose to provident allocation of Tk.
398.49 crore for telecommunication in development
budget for FY 1999-2000.
Mr. Speaker,
32. Transportation constitutes the
arteries of the economy through which all exchanges
take place. From different economic surveys it appears
that improvement of transportation system not only
accelerates economic growth but also alleviates
poverty by generating new employment. This is why
transportation sector received the highest allocation
in the ADP.I propose to allocate Tk. 2421 crore for
this sector (including Jamuna bridge) in development
budget for FY 1999-2000. This constitutes 15.62
percent of ADP. About 76 percent of this allocation
will be earmarked for road sector, about 15 percent
for railways, about 5 percent for civil aviation and
about 4 percent for inland water transportation. There
has been significant improvement in road
transportation with the commissioning of big bridges
like the Bangabandhu Jamuna Multipurpose Bridge. The
following new projects of Roads and Highways
department deserve special mention: Dhaka eastern by
pass, bridges on Dharia and Rupsha and at Paksi,
Bhairab, Shikarpur and Dwarika. A survey has been
undertaken to examine the feasibility of the Padma
Bridge. It is hoped that concrete measures for the
construction of Padma Bridge will be undertaken
shortly. With a view to reducing traffic congestion in
Dhaka Metropolitan area Transportation Planning and
Development Board has been set up with the assistance
of the World Bank. I propose to allocate for this
project Tk. 67 crore in the budget of Roads and
Highways and Tk. 29.69 crore through Dhaka Municipal
Corporation in FY 1999-2000.Tk. 230 crore has been
provided for the repair of damaged infrastructure of
roads and highways in the development budget. Further
more, a sum of Tk. 270 crore has been allocated in the
revenue budget for repair and maintenance of the Roads
and Highways Department. Work on rail links with both
ends of Jamuna Bridge is in progress. I propose to
allocate Tk. 219crore for this project in FY
1999-2000.
33. A review of economic history
indicates that the share of agriculture in GDP
declines with economic development. Bangladesh is not
an exception to this trend. Nevertheless, agriculture
is still a potent engine of growth in Bangladesh
economy. According to Labour Force Survey in 1995-96,
61.8percent of total labour force is still employed in
agriculture. The greatest potential of economic growth
in Bangladesh lies in the agriculture sector. In the
wake of flood in 1998, the peasants in Bangladesh
proved that they can produce record harvest fighting
against natural odds provided Government support and
inputs are available in time. In the election
manifesto, the present government pledged to provide
subsidy on agricultural inputs. The government has
provided subsidy on agriculture from the revenue
budget for three consecutive years from its own
resources. I propose to allocate Tk. 100 crore for
subsidy on fertilizer in FY 1999-2000. If
international prices of fertilizer go up and if needed
we will provide more resources in the revised budget
for this purpose. The Government is determined not to
allow artificial scarcity of fertilizer under any
circumstances. Agricultural research has been
intensified with a view to accelerating growth in
agricultural sector. In order to encourage transfer of
technology at farmer level, private sector will be
involved in supply of improved seed and in new area
including bio-technological research within the
framework of national agricultural research system
through Bangladesh Agricultural Research Council. I
propose to allocate a sum of Tk. 835 crore for
agriculture sector in the development budget of FY
1999-2000. Apart from the crop sector, allocations for
fisheries and livestock subsectors have also been
increased. Total allocation for Agriculture Ministry
in FY 1998-99revenue budget was Tk. 209.84 crore. I
propose to raise this allocation to Tk. 287.77 crore
in FY 1999-2000. Similarly, I propose to raise the
allocation of Fisheries and Livestock Ministry in the
revenue budget from Tk. 109.93 crore in FY 1988-89 to
Tk. 124.27 crore in FY 1999-2000.
Mr. Speaker,
34. Bangladesh is the largest
wetland in the world. This land was formed by the
interaction of innumerable rivers and streams, its
configuration was determined by them and they are
continuously changing it. When water is not needed,
turbulent water floods large landmasses. Water is not
available in many places when it is needed. The
present government has adopted an integrated national
water policy with a view to ensuring proper and best
utilization of water resources. Furthermore, a
historic treaty on long term sharing of Ganges water
has been signed with neighbouring India. As a first
step of the development of the Ganges basin, a project
for the resuscitation of the river Gorai has been
undertaken. I propose to allocate Tk. 1015 crore for
the water sector in the development budget for FY
1999-2000. 84.7 percent of this allocation will be
earmarked for Bangladesh Water Development Board and
Ministry of Water Resources. About 15.3 percent will
be provided to minor irrigation projects which will
mainly be implemented by agencies under the
Agriculture Ministry. As apart of flood rehabilitation
programme a project for the rehabilitation of 1200
deep tubewells of Bangladesh Agricultural Development
Corporation and a project for deep tubewell at low
cost to be implemented by Rural Development and
Co-operative Division will be undertaken in FY
1999-2000. Two projects for emergency flood repair
will be undertaken by Water Development Board with the
assistance of Asian Development bank and World Bank.
An allocation of Tk. 108.44 crore has been proposed
for these projects. I proposeto raise the allocation
for the Ministry of Water Resources from Tk. 118.86
crore in FY 1998-99 revenue budget to Tk. 134.13crore
in FY 1999-2000.
35. It is not sufficient to raise
production of food in the country, it is also
essential to strengthen the food security system. I
would like to dwell on the food management in the
country. There are three objectives of Public Food
Distribution System by the government. First, adequate
stock must be maintained for food security so that
speculative activities in food market are discouraged.
The second objective is to provide36food to distressed
groups. The final objective is to ensure fair price
for farmers so that they do not suffer if food
production increases. In FY 1998-99, the target for
Government import of food grains was raised from 3.5
lakh M.T. to 7.79 lakh M.T. to meet the shortfall in
domestic production. On the other hand, the target for
domestic procurement was reduced from 7.55 lakh M.T.
to 5.3 lakh M.T. Because of record harvest of wheat
and boro rice, the target for domestic procurement for
next year has been fixed at 8.05 lakh M.T. In order to
provide an incentive price to farmers, the procurement
price for wheat has been fixed at Tk. 8.80 per kg and
the procurement price for boro has been raised from Tk.
12 per kg to Tk. 13 per kg. Total projected food aid
in next fiscal year is 8 lakh M.T. wheat. The closing
stock of Public Food Distribution System is estimated
at 10.67 lakh M.T. at the end of FY 1999-2000.
36. Allocations are provided to
local governments from three sectors in the ADP.
First, I propose to allocate Tk. 1233.25crore for
construction of infrastructure in rural areas by the
Local Government Engineering Department (LGED). This
allocation is 15.5 percent higher than the revised
budget allocation for the LGED in the current year.
Second, in the physical planning sector in FY
1999-2000, it has been proposed to allocate Tk. 121.54
crore for four city corporations, Tk. 178 crore for
LGED, Tk. 264.10 crore for Public Health Engineering
Department, Tk. 155.14 crore for Dhaka WASA and Tk. 10
crore for Chittagong WASA. Thirdly, block allocations
of Tk. 225 crore for assistance for Thana development
and Tk. 125 crore for development of Pourashab has
have been proposed in the ADP for FY 1999-2000.
Furthermore, a sum of Tk. 110 crore has been provide
to Local Government Engineering Department for the
repair and maintenance of its infrastructure from the
revenue budget in FY1999-2000. In revenue budget for
FY 1998-99, total allocation for Local Government
Ministry was Tk. 287.15 crore. I propose to raise this
allocation to Tk. 308.59 crore in FY 1999-2000. A
total allocation of Tk.95 crore has been proposed
under three heads for the development of Chittagong
Hill Tracts. Total allocation for Chittagong Hill
Tracts in 1998-99 was Tk. 57crore only.
37. A new surge of enthusiasm is
sweeping sports and cultural arena in Bangladesh,
which today is illumined by the spirit of The
Liberation War. The nation recently celebrated with
great reverence the centennial of the birth of the
rebel poet Kazi Nazrul Islam. The indomitable youth of
Bengal by winning ICC Trophy qualified for
participating in the World Cup and earned a
respectable place for Bangladesh in the world of
cricket. In the recent World Cup games in Britain, our
players earned remarkable success in their maiden
venture. By winning against Scotland and Pakistan,
they provided immense joy and pride to people of all
walks of life. By attaining world standard, they
honoured their motherland. I would like to convey to
them our sincerest greetings and felicitations. Since
the assumption of office, the Prime Minister herself
is providing guidance for improving various games in
Bangladesh to international standard. The recent
stride in sports and games is the direct outcome of
her ebullient enthusiasm and eagerness. In order to
encourage cricket, football and other sports, I
propose to make a block allocation of Tk. ten crore in
the revenue budget for promotion of sports and games.
The total allocation for sports and culture in the
revised development budget is Tk. 52.45 crore. In
1999-2000 it has been proposed to raise it to Tk.
72.25 crore. The empowerment of women is one of the
objectives of the present government. I, therefore,
propose to raise the allocation for Women's Affairs
Department in the development budget to Tk. 54.57 in
FY 1999-2000 from37.58 in FY 1998-99.
38. Environmental degradation in
Bangladesh is not a distant threat in the far-off
horizon; it is a stark reality in day to day life.
Various species of animals and plants are disappearing
fast. Surface water and ground water is polluted in
many places. Inthe metropolitan areas, polluted air
are a major threat to public health. Poverty has
further compounded environmental problems. We will
have to restore environmental equilibrium gradually. A
survey on arsenic poisoning in ground-water is in
progress. An investment project at a cost of Tk.
178.92 crore has been undertaken with the assistance
of World Bank. Under this project, safe water supply
will be developed in 4000 rural and 64 semi-urban
areas. A sum of Tk. 38 crore has been allocated for
this project in the ADP for 1999-2000. The Sundarbans
has already been declared a world heritage site. A
project at a cost of Tk. 382.29 crore for preservation
of bio-diversity in the Sundarbans has been undertaken
with the assistance of Asian Development Bank.
Furthermore, Environment Department has undertaken a
project at a cost of Tk. 30.25 crore for the
management of air quality.
39. There was a clear commitment in
the election manifesto of Awami League in 1996 that
the Army, Navy, Air force and Border Security Forces
will be appropriately equipped so that they can fully
perform their assigned roles. In accordance with the
election pledge, adequate allocation has been provided
for the defence forces keeping into account the
limited resources of the country. In FY 1998-99, total
allocation for defence forces was 2772.42 crore. It
has been raised to Tk. 2878 crore in the revised
budget to meet the increased costs of revised
pay-scales and pension. I propose to allocate Tk.
2996.72 crore for the defence forces including block
allocation for revision of allowances. The proposed
allocation is 8 percent higher than that of FY 1998-99
and the increase in allocation is in line with the
expected rate of inflation.
40. Good governance is one of the
main objectives of the government. In 1996 election
manifesto it was clearly announced that Bangladesh
Awami League will attach highest priority to overall
improvement in the law and order situation with a view
to materializing nation's yearning for a
terrorist-free secure society. In the light of this
commitment, the police force is being reorganized. In
order to increase the effectiveness of the police,
allocation for police has been gradually increased. In
the revised budget for FY 1995-96, total allocation
for police was fixed at Tk. 518.67 crore. In the
original budget for FY 1998-99, it was fixed at Tk.
646.1 I crore. In the revised budget for 1998-99, it
has been raised to Tk. 687.18 crore (excluding
ration). In FY 1999-2000, I propose to raise this
allocation to Tk. 829.6 crore (including ration).
After the assumption of office by the present
government, the annual expenditure for police
(excluding ration) has been raised by Tk. 283.89 crore.
This proposed allocation for police in revenue budget
for FY1999-2000 is 54 percent higher than the revised
budget allocation in 1995-96.
41. It is one of the sacred duties
of the government to ensure the welfare of the valiant
freedom fighters who made supreme sacrifice for the
liberation of this country. Unfortunately, freedom
fighters were neglected in the past owing to
mismanagement of Freedom Fighters Welfare Trust and
indifference of the previous governments. With a view
to increasing the facilities for freedom fighters, the
allocation for the welfare of the freedom fighters was
raised from Tk. 6.60crore to Tk. 9 crore in 1998-99.
In the budget for FY 1999-2000, I propose to raise
this allocation to Tk. 14.51 crore. I hope that more
resources would be mobilized for the welfare of
freedom fighters through better utilization of assets
of Freedom Fighters Welfare Trust.
42. In the economic sphere, there
are three main objectives of the government:
acceleration of economic growth, establishment of
social justice and alleviation of poverty. The private
sector and not the government would be the engine of
growth in economic sphere. The role of the government
would be limited to create a congenial environment for
growth. However, the government has to play a direct
role in ensuring social justice and in alleviation of
poverty. The invisible hand of the market will not
wipe off the tears of the distressed, the government
will have to intervene directly to address this
problem. The present government is determined to play
this role. This is why in ADP for FY 1999-2000, a sum
of Tk. 5313.42 has been provided for activities
directly related to poverty alleviation. Further more,
in the revenue budget for FY 1999-2000, a sum of Tk.
3439.17 is proposed to be allocated to poverty
alleviation programmes (such as gratuitous relief, FFW,
VGD, VGF, housing for the poor, pension for elderly,
primary education and health care in rural areas
etc.). In other words, the combined allocations in the
revenue and development budgets for poverty
alleviation is Tk. 8752.59 crore. It constitutes about
26.28 percent of total allocation of revenue and
development budgets. However, projects in ADP which
are not classified as direct poverty alleviation
projects will also contribute to poverty alleviation
indirectly. According to estimates of NGO Affairs
Bureau, NGOs have spent about Tk. 925 crore in poverty
alleviation projects during the period July 1998 to
May1999.
Mr. Speaker,
43. Scholars disagree as to shape
of things in the world economy one hundred years
hence. However, there is no disagreement on the fact
that changes in the realms of knowledge and technology
will be faster in the coming century. The
distinguished economist Paul Romer rightly observed,
"...The realm of possible things is
incomprehensibly larger than the realm of actual
things. We will never run out of things to discover, a
reassuring fact since the process of discovery is the
mainspring of economic growth". In the world of
rapid technological change, the capacity of the people
to apply new knowledge is the greatest asset.
Inadequate natural resource and large population will
not impede development in Bangladesh in the
twenty-first century. Only by ensuring the proper
development of human resources, a new horizon for
economic development in Bangladesh will be opened.
Bangabandhu rightly said, ''Golden men are needed for
building Golden Bengal". We will have to invest
all our resources for making' golden men' in the
future. That is the surest way of realizing
Bangabandhu's dream of 'Golden Bengal' in the 21st
century.
