Involve people to recover pandemic-hit economy: SelimUddin
The government must involve mass people in the revival of the devastating economy in the Covid-19 epidemic and ensure successful implementation of the budget 2020-21, said Bangladesh House Building Finance Corporation chairman and Islami Bank Bangladesh Limited Executive Committee Chairman, Salim Uddin on Saturday.
He made the comments at a virtual seminar titled ‘National Budget 2020-21’ organized by the finance department of Chittagong University.
Recently, the Chairman of Bangladesh House Building Finance Corporation-BHBFC, Chairman of the Executive Committee of Islami Bank Bangladesh Limited-IBBL and Professor of Accounting Department, University of Chittagong, Professor Dr. Md. SalimUddin, FCA, FCMA, participated in the Virtual Seminar on “National Budget 2020-21” organized by the Department of Finance, University of Chittagong as a designated Chief discussant.
In his speech, Dr.Salim said that the National Budget 2020-21 has been announced at a time when almost all sectors of our economy including most of the world’s economy are going through unusual, uncertain, dangerous and risky situations due to Covid-19. Budget 2020-21 has been prepared based on two bases namely- the medium Term Budget Framework-MTBF and the various policies, strategies and incentives adopted in the last few months centering on the Corona virus.
Dr. Salim further said that a thorough analysis of the National Budget 2020-21 reveals at least six (06) major fundamental commitments. The six basic commitments are: 1) Accelerated implementation of huge incentives of TK1,03,116crore announced by the Hon’ble Prime Minister.2) Increasing government expenditure by giving priority to innovation with giving emphasis on the quality of expediture. 3) Reducing and discouraging luxury expenditure. 4) Revive economic activities by introducing low interest loan facilities.5) Widening the coverage of social safety network and 6) Maintaining adequate liquidity by increasing the money supply in the market.
In the period of Corona Disaster, if National Budget 2020-21 is successfully implemented, he expressed hope that the initiatives such as beneficial works for the sectors affected by COVID 19, rehabilitationof the poor, low-income and recently unemployed people, restore the economy to its former positionwould have a positive impact on the social and economic spheres including the attitude towards allocation.
He further emphasized that the benefits, achievement, spiral effect, positive impact, efficiency and overall success of National Budget 2020-21 must depend on its implementation. In this speech Dr. Salim mentions four (four) concepts which he calls PEST in his own language. For example: “P” means Properly i.e. budget should be implemented following due diligence, compliance with all relevant the rules and regulations. “E” means Efficiency, which means to pay special attention to productivity with maximum output-input ratio. “S”meansSincerely, which means honesty, integrity, transparency, a corruption-free environment and the principle of justice. Lastly “T” means Timely, that is, the work of time means taking steps in implementation with emphasis on contemporaneity and timeliness. It is still unknown where the Covid-19 epidemic willtake the global economy. At present, No one can say with certainty in the world how long it will take for the economy to return to normal position. Considering everything, it seems that we are heading towards the Great Depression. So, in view of the effects of the Great Depression of 1929 we can learn from the failure of the then US President Herbert Clark Hoover to follow in the foresteps of the then President Franklin D. Roosevelt’s “New Deal” acceptance is vital in the implementation of our economy and the national budget. The doctrine of the eminent economist Menard Keynes played a significant and crucial role in reviving the economy during the Great Depression of 1929. According to Keynes, it is very difficult to mobilize the economy without playing a strong role in increasing demand including government intervention. So, Dr. Salim said the government expenditure will play a significant role in increasing the domestic demand in the implementation of this budget. However, all aspects of income and deficit financing risks and challenges need to be taken into special consideration.
Dr. Salim also mentioned that the government and the conscious people must consider the involvement of the people in the revival of the devastating economy in the Covid-19 epidemic and the successful implementation of the budget 2020-21. In other words, the people need to continue to support the policies, strategies and incentives adopted by the government and increase the involvement of government and professionally skilled people in various ways. Only then, all strategies be more effective in recovering from any epidemic.
Chairman of Finance Department, University of Chittagong, Professor Shamim Uddin Khan preside over the seminar while Director of Islami Bank Ltd and Professor of the same department Dr.SalehJahur presented the keynote paper. Professor Nasrul Qadir, Professor Jannat Ara Parveen, Professor Ismat Ara Haque, Professor Jamal and Professor Sohrab took part in the discussion. Professor Salamat Ullah Bhuiyan, Dean, Faculty of Business Administration was present as the Chief Guest on the occasion. A large number of faculty members and students participated in the seminar.
