Experts of Unnayan Shamannay urged the government to take a loan from the reserve to bring 70 to 80 per cent of the citizens under the vaccination programme against COVID-19.
“This initiative will increase the budget deficit by 0.4 per cent. Policymakers need not worry too much about this increase in the deficit. Instead, they should prioritise ensuring adequate allocations for health, education, and social safety nets,” the experts said.
Unnayan Shamannay’s Lead Economist Robart Shuvro Guda and Policy Analyst Zinia Sharmin came up with the recommendations at an online discussion on Saturday with the students of six universities on the proposed budget for next fiscal year, according to a press release.
The session was moderated by Unnayan Shamannay’s Coordinator Zahid Rahman, while eminent Sociologist and the organization’s Emeritus Fellow Khondoker Shakhwat Ali made the concluding remarks.
Participating students raised the issue of inadequate allocations in the proposed budget for social safety nets.
In response, Robart Shuvro Guda said the government must also consider taking up new programs considering the existing realities along with increasing allocations and coverage of the existing safety nets.
“A lot of workers are returning from abroad. A large portion of the urban workers is also returning to the villages. Safety nets should be initiated so that a significant share of these workers may be engaged in the rural areas,” Robart Shuvro Guda said.
“Safeguarding these people will contribute towards maintaining the domestic demand, which in turn will benefit the macroeconomic condition of the country as well,” Unnayan Shamannay’s lead economist added.
In response to another question, Zinia Sharmin pointed out that Bangladesh being on the way of attaining developing country status amid the pandemic situation reflects the macroeconomic strength of the country.
“However, instead of thinking about how long it will take to get the developing country status; policymakers must prioritise safeguarding the lives and livelihoods of the people. Bangladesh needs to start working for the universal pension scheme and health insurance from now,” she opined.
In the concluding remarks, Khondoker Shakhawat Ali said that Bangladesh is now going through an extraordinary phase like any other country.
“Hence, ‘business as usual' budget cannot be expected from the policymakers. The journey of Bangladesh’s inclusive development has definitely hit a bump due to the pandemic,” he said.
“However, there is still scope for comprehensive socio-economic recovery,” he opined.
Mr. Ali further suggested that the planning for recovery needs to be as participatory as possible. For that, the policymakers must engage with all the stakeholders at home and abroad.