Seeking budget support: A confident move

24 May, 2021 12:00 AM printer

The coronavirus pandemic has hit the economies around the world hard, along with claiming millions of lives. Every country is suffering from it and, at the same time, searching for a way out. The epidemic has negatively impacted countries like Bangladesh by putting them at a situation where more fund is needed to meet the demand for additional healthcare facilities, food security and job creation. Such an economic crisis may hinder their journeys from the least developed background to a developing country one. However, it is praiseworthy that to meet the growing needs the government of Bangladesh is fixing to collect US$ 2.90 million budget support from development partners in the FY 2021-22, almost two times higher than that of the revised target in the current FY.

Seeking the high amount of money as budget supports instead of project loans demonstrates the confidence and determination of the government to spend the amount for overall development, as per the need, of the country instead of just project development. The target has been set with a view to spending more on Covid-19 induced emergencies. In addition, looking for loans of such a big amount indicates the enhanced financial capability of the country that has recently surpassed its neighbour India in per capita income. On the other hand, thinking of providing budget supports instead of project loans by the lenders is actually a kind of recognition to our ability in terms of utilising the money and repaying the loan.

It is a matter to be proud that our country is doing well in all economic fronts, along with developing the life standard of the people and therefore, earning respect from other nations. But despite all the successes, it is a demerit that our revenue collection target undershoots by a large margin which leads to seeking this budget support. Therefore, we have to work out ways of increasing revenue collection. We expect that the day is not far away when we would achieve this target also.