Ministry
of finance
annual budget
2001-02
budget
speech
shah
a. m. s. kibria
finance
minister
(part
I)
DHAKA
24th Jayistha,
1408
7th June, 2001
In the name of
Allah
the Beneficent and
Merciful
Mr.
Speaker,
I seek your leave in
accordance with the Rules of Procedure of the Parliament to place before this
august House the budget for the FY 2001-2002 and the supplementary budget for
the FY 2000-2001.
2.
This indeed is a memorable occasion in the history of parliamentary
democracy in Bangladesh. Never before had a Parliament in Bangladesh the
opportunity to approve six consecutive budgets. By approving this sixth budget,
the seventh Parliament will leave a remarkable instance of uninterrupted
political stability. I express my gratitude to Almighty Allah for giving me the
unique opportunity to place six consecutive budgets before the Parliament. I
would also like to express my sincerest gratitude to daughter of the Father of
the Nation and the Hon'ble Prime Minister Sheikh Hasina. But for her guidance,
dynamic leadership and extraordinary political acumen, I could not have
shouldered this heavy responsibility for last five years.
Mr.
Speaker,
3.
Today is the 7th June. On this very day was unfolded a new epoch-making
chapter in the long history of the liberation struggle of the Bengali nation.
The announcement of the six points programme symbolizes the first revolutionary
step in our struggle for independence. While tabling the budget on this historic
day, I would like to pay homage to Sheikh Mujibur Rahman, the great hero of our
history and the architect of independent and sovereign Bangladesh. His role was
unique and ubiquitous in imparting a new meaning to history and tradition of
Bangladesh, in moulding secular national sense and nationalism and in
establishing their identity and a nation-state of their own. Unfortunately, the
assassins did not realize that they have struck a harsh blow to the softest
corner of the Bengali heart; they did not have the sense to appreciate the
enormity of this dastardly action. The brutal murderers did not know that their
sharp weapons could never silence the voice of Bangabandhu; his thunderous voice
will reverberate forever in this land and will continue to shake the hearts of
the Bengali people. Despite the concerted efforts of last two decades to distort
history, Bangabandhu's life and philosophy continues to provide guidance and
inspiration in every sphere - in political ideals of Bengali nation, in economic
emancipation, in evolution of democratic spirit, in education and culture and in
the triumph of liberated intellect. He will forever be the very source of all
achievements and inspiration of the Bengali nation. Indeed all Bengalees who are
animated by the ideas, ideals and consciousness of the noble Liberation War are
eagerly waiting for the day when the verdict of Bangabandhu's murder case would
be implemented, thereby ending a shameful episode of our history. It may be
recalled that in my budget speech of 11th June last year, I had stated that this
trial process should be completed at the earliest if we want to establish the
rule of law in this country. The unholy and antiliberation forces who were
defeated in 1971 are still continuing with their subversive efforts to delay the
process of justice. The conscience of this anguished and agitated nation will be
assuaged only when the verdict of the court is
implemented.
4.
I would also like to pay homage to four national leaders Shahid Syed
Nazrul Islam, Shahid Tajuddin Ahmed, Shahid Mansur Ali and Shahid Kamruzzaman.
The nation will forever recall with reverence their contributions to glorious
liberation struggle. Hon'ble Prime Minister Sheikh Hasina has earned the
gratitude of the entire nation by initiating the legal process for trial of
these cruel and tragic murders. The nation is eagerly waiting for the early
conclusion of this trial. I also recall with reverence the contribution of the
valiant freedom fighters, the sacrifices of thirty lakh martyrs and two lakh
women whose lives were devastated by the war. Their contribution will shine
forever in the history of our liberation struggle. The "Eternal Flame" lighted
by Bangabandhu's daughter Sheikh Hasina and the illuminated Freedom Tower which
is under construction will remain everglowing - , symbolizing the hopes and
aspirations of the independent Bengali nation.
Mr.
Speaker,
5.
I would like to remind today the Hon'ble members of the House of my
observations in the budget speech of 1996-97 at the very commencement of the
seventh Parliament. In that speech, I informed the nation through this august
House that "the present government has inherited a sluggish and fragile economy
from its predecessor". Indeed, we inherited stagnation in agriculture,
dependence on foreign sources for food, major dislocation in the electricity
sector owing to failure in providing adequate investment, a large deficit in
international trade, anarchy and massive fraud in the financial sector, an
intransparent administration characterized by lack of accountability and a
frustrated private sector. In the context of the prevailing situation, I stated
in my budget speech in FY 1996-97: "The greatest challenge before today's
government is to accelerate growth by infusing new life in a sluggish economy".
At the twilight of the seventh Parliament, I would like to inform this House
with pleasure that we have successfully redeemed the pledge of accelerating
economic growth during last five years. According to latest estimates, in FY
2000-2001 GDP in constant price (base year 1995-96) grew at the rate of 6.04
percent. If the estimation procedure used by the previous government (using
1984-85 as base year) is applied, growth rate will stand at 6.6 percent. On the
basis of new estimation procedure, GDP, on an average, grew annually at the rate
of 5.35 percent during the period FY 1996-97 to 2000-2001. This remarkable
growth was achieved despite the meltdown of South Asian economies in 1997-98 and
the longest and devastating flood of this century in FY 1998-99. By contrast the
average annual growth rate during the period 1991-92 to 1995-96 which coincided
with the rule of the BNP government stood at 4.5 percent only. The contrast
becomes all the more striking in respect of per capita income. During five years
of BNP rule, per capita income in (FY 1995-96 constant price) grew on an average
at the rate of Tk. 28 per month. During last five years which coincides with the
rule of the present government, per capita income grew on an average at the rate
of Tk. 48 per month (in the same constant price).
Mr.
Speaker,
6.
It may be mentioned here that old estimation procedure based on 1984-85
constant price is more appropriate than the new procedure based on 1995-96 price
for comparing the achievements of the present government with the previous
governments because prior to 1999-2000, GDP estimates were calculated on the
basis of the old procedure. If the old procedure is used, the annual average
growth of GDP during the period FY 1996-97 to
2000-2001 turns out to be 5.83
percent which has been estimated at 5.35 percent on the basis of new procedure.
According to the old estimation procedure based on the constant price of
1984-85, per capita income in Bangladesh increased by only 23.1 percent during
the period 1984-85 to 1995-96 whereas per capital income in the same constant
price increased by 24.3 percent during the period 1995-96 to 2000-2001. In other
words, increase in per capita income during five years under the present
government exceeds the growth of per capita income in long ten years under
former governments.
Mr.
Speaker,
7.
An increase in per capita income is undoubtedly necessary for
development, but it is not sufficient. Economic growth does not always yield
benefits unless accompanied by equitable distribution of income and social
justice. The present Awami League government as the inheritor and transmitter of
the spirit of the Liberation War not only encouraged economic growth but also
undertook effective measures for establishing social justice. According to
estimates of Bangladesh Bureau of Statistics, Gini Coefficient (the index of
income inequality) stood at 42 percent in rural Bangladesh for the year 1994-95,
it declined to 36 percent in the year 1998-99. Similarly, Gini Coefficient for
urban areas for the corresponding period declined from 49 percent to 43 percent.
On the basis of headcount index, the share of the poor in rural areas in 1995-96
was 47.9 percent, it declined to 44.9 percent in 1998-99. The share of the poor
in rural areas has further declined in the last two years. Life expectancy at
birth in Bangladesh in 1995-96 stood at 58.7 years; according to latest
estimates it has edged upto 61.8 years. The per capita intake of calorie has
increased during last five years. During the period April 1996 to May 1999, per
capita calorie intake in rural areas increased from 2206.1 kilo calorie to
2274.2 kilo calorie and in urban areas from 2220.2 kilo calorie to 2280.3 kilo
calorie. Social development in Bangladesh during last five years proceeded
faster than growth of per capita income owing to the fact that the benefits of
government activities were delivered direct to the target group. UNDP uses
mainly two types of indices for measuring social development: Human Development
Index and Human Poverty Index. The preliminary estimates of both indices suggest
a significant improvement in social development during last five years. Human
Development Index increased from 42.6 in 1995-96 to 48.5 in 1998-99.
Furthermore, Human Poverty Index declined from 41.6 to 34.8 percent in
1998-2000. On the whole, there is no doubt that there has been not only a
quantitative shift in growth in Bangladesh but also a qualitative change in
growth itself. Under skilful leadership of Prime Minister Sheikh Hasina,
economic and social development under the present government has not only given
a taste of a better life to the poor and the vulnerable but also ensured
significant empowerment of these groups.
Mr.
Speaker,
8.
During last five years the happy blending of economic growth with social
justice was not created by the invisible hand of the market. Such growth has to
be attributed directly to policies and strategy pursued by the government of
Prime Minister Sheikh Hasina. There are five discernible ingredients in this
strategy. First, effective measures have been taken for increasing agricultural
production. Second, social security system was established to ensure social
justice for the destitute and the implementation of innovative poverty reduction
programmes was undertaken. Third, there has been a significant increase in
investment in education and health. Fourth, macro economic stability was
ensured. Finally, reforms were undertaken to encourage investment in the private
sector. I would now like to highlight the implementation of these
policies.
Mr.
Speaker,
9.
Growth in agriculture sector is essential not only for economic
development but also for social justice. The increased agricultural production
ensures additional supply of food for the poor and promotes stability of prices.
Furthermore, it reduces the dependence on foreign sources for the supply of
food. Unfortunately, stagnation prevailed in the agriculture sector in
Bangladesh owing to insufficient investment and the neglect of the government.
During five years of BNP rule, annual growth rate in agriculture was less than
half (0.5) percent. In fact during this period of nightmare for agriculture and
farmers in Bangladesh, agricultural production declined in two out of five
years. By contrast, agriculture in Bangladesh during last five years of Sheikh
Hasina's rule registered a growth of 4.2 percent per annum (at constant price).
Compared to performance of the previous government, average annual growth in
agriculture under the present
government increased by more than eight times. When the present government took
over, total foodgrain production in the country stood at about 19 million metric
tons. The new record of foodgrain production in 2000-2001 is estimated to exceed
26.4 million metric tons. During last five years foodgrain production increased
by at least 7.4 million tons. Total foodgrain production in the country in
1975-76 was 13 million metric tons. During the period 1975-76 to
1995-96
total foodgrain production increased by 6 million metric tons in two decades.
What the previous governments could achieve in agricultural production in twenty
years was exceeded by the present government in only five
years.
10. The
revolutionary change in the agricultural sector could be attributed to timely
supply of inputs at a fair price. It may be mentioned here that agriculture
sector experienced distress owing to the failure of the previous government to
supply agricultural inputs and the overall neglect of the agriculture sector.
Eleven farmers were gunned down by the police during BNP rule for demanding
supply of fertilizer. Despite the commitments of the previous governments to
donors to eliminate subsidy on fertilizer and defying all pressures, the present
government has continued direct subsidy for fertilizer. During last five years,
subsidy to the tune of Tk. 511 crore was provided for fertilizer only.
Similarly, hidden subsidy has been provided for electricity used in irrigation
equipment and for diesel. During the current fiscal year, cross subsidy on
electricity and fertilizer was 26.6 percent and in case of diesel 27 percent. In
order to encourage mechanization of agriculture, import duty on irrigation
equipment, power tiller and other agricultural equipment has been withdrawn.
There has been an unprecedented expansion of agricultural credit. The average
annual disbursement of agricultural credit during BNP rule stood at Tk. 1195
crore. During first four years of the present government it increased to
Tk.
2395 crore - which is more than 200 percent higher than the previous average. In
FY 1998-99, agricultural credit from the institutional sources stood at Tk. 3245
crore. Furthermore, facility of agricultural credit has been extended to
sharecroppers in 1998-99. The procurement of foodgrain from the internal sources
has been significantly expanded with a view to ensuring fair price. In 1995
internal procurement of foodgrain stood at 2.4 lakh metric tons, in 2000 it has
been raised to 10.47 lakh metric tons. In 1995, internal procurement price of
wheat per quintal was Tk. 750, it was raised in 2000 to Tk. 890 - an increase of
18.6 percent. Similarly procurement price of Boro rice was increased by 15
percent and in case of Aman by 18 percent. I would like to express my gratitude
to Almighty Allah for this remarkable success in raising foodgrain production. I
would like to congratulate the dedicated peasants whose hard work has won for
Bangladesh the distinction of food autarky. This rare and glorious success was
achieved by the coordinated response on a priority basis by the concerned
ministries under the farsighted leadership of Prime Minister Sheikh
Hasina.
Mr.
Speaker,
11. Bangladesh
contains a significant share of the ultrapoor in the world. The percolation
effects of economic growth failed to evoke any response in this invincible
fortress. Unfortunately, the previous governments lacked clear vision on poverty
alleviation. There is, therefore, no worthwhile record of their involvement or
achievement in this area. They had no elaborate programme and their activities
were limited to donor assisted relief and scattered micro credit projects.
Poverty in Bangladesh is both widespread and complex. Poverty in Bangladesh is
not homogenous. There are various dimensions of poverty in Bangladesh whose
origin, nature and solutions are different. The present government has,
therefore, adopted separate programmes for different target
groups.
12. First,
there is a large number of ultrapoor in the country who could not escape from
the vicious cycle of poverty without social safety nets. Before the assumption
of office by the Awami League government, there was no system of social security
for the elderly in Bangladesh. The programme for paying allowance to the elderly
was launched in FY 1997-98. Under this programme, more than 4 lakh elderly
persons receive a regular monthly allowance of Tk. 100 per month. Since 1998-99,
a new programme was launched to provide similar monthly allowance to about 2
lakh destitute women, widows and abandoned wives. A National Foundation for the
handicapped has been established with an initial allocation of Tk. 10 crore for
the training and rehabilitation of the handicapped. Six homes for the care of
the elderly have been set up at a cost of
Tk. 10 crore. Furthermore, a
welfare trust at a cost of Tk. 5 crore has been established for destitute women
and children. The previous governments failed to undertake such meaningful
measures for the amelioration of the lot of the ultrapoor.
13. Secondly,
housing for the poor was totally neglected by the previous governments. Since
the assumption of office by the present government, two types of projects for
providing shelter to the poor were undertaken. Asrayan (Provision of Shelter) project
has been undertaken under the personal initiative and supervision of Prime
Minister Sheikh Hasina for solving housing problems of those ultrapoor who do
not own any homestead. Houses have already been constructed under this project
for 29 thousand ultrapoor and microcredit to the tune of Tk. 17.2 crore has been
distributed for their self-employment. Furthermore, construction of additional
18 thousand houses is under construction. The Housing Fund has been established
for those poor who lack suitable accommodation but own homestead. Already 66
crore taka has been disbursed as loan under this programme for the construction
of house for 33 thousand families. The construction of eighteen thousand houses
have been completed. No other previous government has provided housing loan on
easy terms to the rural poor. Indeed by funding these projects for assisting the
shelterless poor, the government of Sheikh Hasina has set a new standard for
public service and good governance.
14.
Furthermore, the present government has recast the existing poverty
alleviation programmes by expanding and consolidating them. Food for Works
Programme, Test Relief, Vulnerable Group Feeding and Vulnerable Group
Development programmes were significantly expanded with a view to providing
adequate food for the poor. During the period 1991-92 to 1995-96, on an average,
8.33 lakh metric tons of foodgrain per year were distributed. It increased to
12.27 lakh metric tons per year during the period 1995-96 to 2000-2001. The
distribution of foodgrain has been increased by about 47 percent and the
expanded programmes were mainly funded from the domestic
sources.
15. The present
government introduced new income generating programmes and expanded the existing
micro credit programmes. "One House One Farm" project was launched under the
personal initiative of Prime Minister Sheikh Hasina with a view to organizing
every family in rural Bangladesh on the basis of cooperatives and by using
unutilized resources through training to make such houses developed
self-sufficient farms. The estimated cost of the project is Tk. 141 crore. We
expect that this revolutionary programme will assume the character of a social
movement which will augur a silent revolution in the rural areas. With a view to
providing credit for profitable and productive employment, Karma Sangsthan Bank
was established on 22nd September, 1998. The Bank has meanwhile disbursed credit
to the tune of Tk. 40 crore to 12 thousand educated and unemployed youth. The
average size of loans in the bank is about Tk. 33 thousand. The cumulative
disbursement of fourteen ministries in various micro credit projects stands at
Tk. 3445 crore, while the cumulative disbursement of micro credit from
nationalized banks so far totals Tk. 7005 crore. Palli Karma Sahayak Foundation
(PKSF) has been strengthened for lending funds to the NGOs and a credit of $ 181
million has been lined up from the IDA for ensuring continuous funding by PKSF.
According to a survey, 10.2 million members have so far borrowed about Tk. 10900
crore from the NGOs. Never before in the history of Bangladesh, projects on such
a wide scale were ever undertaken for the alleviation of poverty. Because of the
efforts of the Government, the benefits of development could be delivered to
poorest segment of the population.
Mr.
Speaker,
16. Neither its
natural resources nor its physical capital but its people constitute the
greatest asset for Bangladesh. Human resource development is both a means and
end of development in Bangladesh. Bangladesh has an enviable record in respect
of human resource development in last five years. The adult literacy for persons
of 15 and above stood at 47.3 percent in 1995, it has increased to 64 percent in
2000. The percentage of students in the age bracket of five to twenty four years
was 50.1 in 1996, it has increased to 55.9 percent in 1998. The infant mortality
rate per thousand has decreased from 67 in FY 1995-96 to 57 in FY 1997-98.
Average life expectancy has increased by 3.1 years during last five years. The
Government has taken three noteworthy measures for development of human
resources during last five years. First, expenditure in social sectors has been
expanded rapidly. In FY 1995-96, the combined allocation in revenue and
development budget for health and education sectors was Tk. 5133 crore; in the
revised budget for FY 2000-2001, the allocation has jumped to Tk. 8469 crore.
Secondly, Education Policy and Health Policy were approved by the Government.
The previous governments failed to finalize two such vital policies. The phased
implementation of these policies has already commenced. Finally, special
programmes have been undertaken for training and application of information
technology with a view to promoting human development. The import duty and other
levies on computer were withdrawn for encouraging widespread use of information
technology in the country.
Mr.
Speaker,
17. The proper
macroeconomic management is an essential precondition for sustainable
development. Inflation is not merely an impediment to development, it also leads
to unemployment and erosion of purchasing power of the poorer segments of the
population. The distinguished economist John Maynard Keynes rightly said, "There
is no subtler, no surer means of overturning the existing basis of society than
to debauch the currency". Bangabandhu also identified it as the principal enemy
of three major enemies in Bangladesh. In the budget speech of 1996-97, I
pledged: "Appropriate macro policies will be pursued in order to stabilize the
economy". After five years of macro management, I am glad to inform this august
House that despite high growth and natural calamities, we have succeeded in
maintaining economic stability. During the period July 1996 to March 2001, the
average annual inflation rate was 4.5 percent. However, the rate of inflation
has significantly decreased during last two years. The inflation rate for the
first nine months of the current fiscal year calculated on the basis of average
monthly rates stand at 1.59 percent. By contrast, the average inflation rate of
all developing countries, according to estimates of IMF, was 6.2 percent for the
year 2000 and is expected to stand at 5.2 percent in 2001. The average inflation
rate in Bangladesh for FY 1999-2000 was 3.41 percent. Thanks to appropriate
monetary and fiscal policies, inflation rate was significantly curbed during
last two years despite sudden rise in petroleum products, economic meltdown in
Southeast Asia and the devastating flood in 1998.
18. Low
inflation rate is not sufficient for macroeconomic stability, it is also
essential to augment the foreign exchange reserves. The Government has pursued a
three-fold policy for maintaining balance in the external sector. First,
different assistance schemes including subsidy were undertaken with a view to
stimulating exports. Total subsidy in FY 2000-2001 for industries using domestic
raw materials in RMG industry, selected leather products, manufactured jute
products, flower and artificial flower etc. stood at Tk. 797 crore. This has
considerably strengthened the competitiveness of our exporters. Secondly,
flexible exchange rate policy has been pursued with a view to encouraging
exports. The exchange rate is determined on the basis of Real Effective Exchange
Rate (REER) which is calculated on the basis of daily data. In the current year,
Bangladesh currency was devalued twice and the rate of devaluation was 10.5
percent. In FY 2000-2001, Equity and Entrepreneurship Fund was set up with a
view to encouraging the export of nontraditional products. The participation of
this fund in the equity of export-oriented industries will reduce the risk and
cost of the entrepreneurs.
Mr.
Speaker,
19. In the very
first budget of this government, we promised that private sector shall be the
engine of growth in the economy and the role of the government will be limited
to promotion of environment and opportunities for development. With this aim in
view, a number of measures were undertaken during last five years for
stimulating private investment. All sectors except four sensitive sectors have
been opened to domestic and foreign entrepreneurs. Foreign direct investment has
been attracted to infrastructure sector. According to estimates of World Bank,
Bangladesh has already attracted foreign investment to the tune of $ 1.9 billion
in electricity, telecommunication, gas and port during the last five years.
Furthermore, a number of reform programmes were undertaken to promote investment
in the private sector. First, Capital Market Development Programme has been
implemented with the assistance of Asian Development Bank. Five Laws have been
amended and rules and regulations have been promulgated. Owing to these reforms
and application of information technology to securities market, a solid base has
been laid for the development of capital market.
20. Secondly,
banking reforms were consolidated during last five years. By establishing
separate money loan courts, promulgating Bankruptcy Law, strengthening central
bank supervision, amending laws and establishing good governance we have
succeeded in stemming the anarchy which we inherited from the previous
governments. According to latest estimates of Bangladesh Bank, gross default
rate in scheduled banks of Bangladesh stood at 41 percent in December 1999, it
has declined to 34.9 percent in December 2000. In fact the net default rate
(which is usually quoted in international banking), which excludes provisions
already made and the dues from the government on account of state-owned
enterprises, would be much lower.
21. Thirdly,
reforms in the commercial sector were undertaken keeping into account the
interests of domestic industry. The average effective rate of import duty was 17
percent in 1995-96, it has declined to 13.7 percent in FY 1999-2000. Specially,
the reduction of duty on raw materials has stimulated industrialization in the
country. Fourthly, measures have been taken for administrative reforms. A
project with the assistance of World Bank at a cost of Tk. 229 crore has been
undertaken for judicial reforms. The Administrative Reforms Commission has
submitted its report to the government. The recommendations of this commission
are now being scrutinized by relevant authorities.
22. Finally,
development financing has been arranged from domestic and international sources
for industrial credit. The implementation of Financial Institutions Development
Project with the assistance of World Bank is already in progress. With direct
government support, Agrani Bond and Equity and Entrepreneurship Fund have
created special windows for financing export-oriented industries. In the
meanwhile, the problem of sick industry has been solved on a permanent basis by
implementing the recommendations of a committee appointed for this purpose. The
present government had to resolve satisfactorily the problem of sick industries
which was created by myopic and inappropriate policies of the previous
governments. Furthermore, privatization programme has been recast in the light
of experience. On the whole, a suitable climate has been created for investment
in the country. We are already receiving the dividend of business-friendly
policies in the form of increased private sector
investment.
Mr.
Speaker,
23. The
experience of last five years indicates that the policies pursued by the present
government have been fruitful in both accelerating growth and in establishing
social justice. It is, therefore, incumbent on us to intensify and consolidate
the implementation of these policies. It is also obvious that Bangladesh has the
distinct potentialities to attain more than what has been achieved in last five
years. With a view to moving in tandem with the rest of the world, we will have
to recast our old and outdated administrative system in the light of ideals and
policies of our constitution. We will have to reduce the gap between the
potentialities and actual achievement through rapid implementation of reforms.
If reelected, we plan to initiate second phase of reforms which would include
effective reforms in administration, state-owned enterprises, banking system and
commercial sector. A Revenue Commission will be set up to suggest ways and means
for mobilization of additional resources to meet the requirements of long term
development. Furthermore, a Public Expenditure Review Commission will be
appointed to submit recommendations to the government for best utilization of
resources in the public sector. Necessary reforms will be undertaken in economic
management on the basis of the findings of these two commissions. However, all
reforms must be consistent with our experience. We will never accept reforms
imposed from outside. We will commence second phase of reforms after creating
necessary public opinion and public support.
Mr.
Speaker,
24. I would now
like to present the main economic trends of FY 2000-2001. From the GDP estimates
it appears that in FY 2000-2001, Agriculture and Forestry sector grew by 4
percent, the corresponding growth rate was 6.92 percent in the previous fiscal
year. Indeed four percent increase in agricultural production in the current
year despite extraordinary growth in agriculture in the previous year is an
enviable achievement. Industry in FY 2000-2001 will register a growth of 9.1
percent. This is the highest growth rate in last five years. The growth rate in
the industrial sector plummeted to 3.19 percent in the wake of devastating flood
in FY 1998-99. It edged upto 4.76 percent in FY 1999-2000. The acceleration of
growth in industrial sector in the current year may be mainly attributed to
reduction of duty on raw materials and business-friendly policies. Growth in the
construction sector in FY 2000-2001 was 7.93 percent which is slightly less than
previous year's growth rate (8.48 percent). In fiscal year 2000-2001, fisheries
grew by 8.4 percent; mineral resources by 10.55 percent; power and gas by 7.02;
wholesale and retail trade by 6.25 percent; transportation by 6.25 percent, bank
and insurance by 5.68 percent and health sector by 4.91 percent. All sectors
registered positive growth in FY 2000-2001 and the lowest rate of growth for a
sector was 3.09 percent. The provisional estimates indicate that domestic and
national saving rate for FY 2000-2001 was 17.88 and 23.1 percent respectively.
The corresponding rates for FY 1995-96 was 14.9 percent and 20.17 percent
respectively. The latest estimates suggest that 23.63 percent of GDP was
invested in FY 2000-2001. The share of investment in GDP in 1995-96 stood at
19.99 percent. High growth rates in last five years may, therefore, be directly
attributed to remarkable expansion of investment.
Mr.
Speaker,
25. A cautious
expansionary monetary policy was pursued in FY 2000-2001. In the previous fiscal
year, expansionary monetary policy was followed to counteract the recessionary
effects resulting from the flood in 1998. The annual growth of broad money
during the period April 1999 to March 2000 was 19.18 percent. It has declined to
15.38 percent during the period April 2000 to March 2001. However, this growth
is limited to only 10.31 percent in first nine months of the current fiscal
year. Furthermore, government borrowing has significantly decreased during first
nine months of current fiscal year and borrowing by the private sector went up.
During the period July 1999 to March 2000 government borrowing increased by
39.42 percent, the corresponding rate for the current fiscal year has decreased
to 14.93 percent. During the period July 1999 to March 2000, private sector
borrowing increased by 5.78 percent, in the corresponding period in the current
year it increased by 10.63 percent. With the acceleration of industrial growth,
private sector borrowing has picked up.
26. In FY
2000-2001, exports during first nine months of the fiscal year increased by
15.92 percent in dollar terms. In FY 1998-99, export growth came down to 3.2
percent in the wake of 1998 flood. It increased to 8.2 percent in FY 1999-2000.
Exports of frozen food, leather products, tea and knitwear registered
significant increases. However, the export of jute and jute products fell in
view of insufficient demand in the international market. Despite the
fluctuations in monthly growth rates of remittance by expatriate citizens, total
remittance is estimated to be around $ 1.9 billion. The growth of imports in the
first six months of current fiscal year is estimated at 17.82 percent. Though
foodgrain imports decreased, imports of machinery, petrol and petroleum products
and industrial raw materials registered significant growth. With a view to
promoting growth of exports, Bangladeshi taka was devalued by 5.26 percent on
24th May, 2001. Furthermore, it has been decided that the existing subsidy on
exports will continue on the same terms and conditions in FY 2001-2002. The
expatriate nationals have significantly contributed to foreign exchange
earnings. As a token of recognition of their contribution, I propose to issue
special V.I.P. card, gold card and silver card respectively to those who remit
more than one lakh, fifty thousand and twenty thousand dollars in a year. The
cardholders will be entitled to encash travellers cheques without commission,
will be allowed to special facilities in the airport and will be given priority
in booking seats in internal flights, railway ticket and bus tickets in the
BRTC. The detailed rules will be issued shortly by Bangladesh
Bank.
Mr.
Speaker,
27. I would now
like to present the salient features of the revised budget for FY 2000-2001. In
the original budget of this fiscal year, total revenue receipts were estimated
at
Tk. 24,198 crore, of which Tk. 18,000 crore was the target for taxes
controlled by the NBR and the receipts of other taxes and non-tax revenues were
estimated at Tk. 6,198 crore. Thanks to satisfactory increase in imports and
administrative improvements, actual collection of the NBR for the first nine
months has exceeded the target. Taking into account the trends of revenue
collection of the NBR in the current year, I propose to refix the target for NBR
at
Tk. 18,300 crore. In view of the losses in the state-owned enterprises
and shortfall in NBR taxes, estimates for receipts of other taxes and non-tax
revenues have been reduced from Tk. 6,198 crore to Tk. 5,873 crore. On the
whole, there will be a revenue shortfall of Tk. 25 crore only. In the current
fiscal year, the sale of saving certificates has increased dramatically. In FY
2000-2001, the gross sale target of saving certificates was Tk. 4799 crore and
the net target was fixed at Tk. 2400 crore. In the first nine months of the
current fiscal year, total gross sale of saving certificates stood at Tk. 4559
crore and the net receipts already totalled Tk. 2822 crore against target of Tk.
2400 crore. Taking into account, the actual trends in sale of saving
certificates the net receipts under this head is estimated to increase by Tk.
1129 crore. Considering the reduction of expenditure under capital head and
additional sale of saving certificates, total receipts under capital and
non-bank borrowing head will increase by Tk. 1397 crore. Excluding shortfall of
Tk. 25 crore in revenue receipts, net additional resources will stand at Tk.
1372 crore.
Mr.
Speaker,
28. In FY
200-2001, total revenue expenditure is proposed to be raised from Tk. 19633
crore in the original budget to Tk. 20,662 crore in the revised budget. The main
reasons for the increase in revised budget are as follows: increase in the rate
of government subvention for teachers in private schools (Tk. 243 crore),
increase in subsidy on exports (Tk. 200 crore), increased expenditure for
disaster management and relief (Tk. 190 crore), increase on account of interest
on domestic loans (Tk. 378 crore) and the purchase of arms, equipment for
peacekeeping operations by Bangladesh armed forces (net Tk. 114 crore) and
pension on revised salary (195 crore). The original target for ADP was 17500
crore. It is proposed to be raised to
Tk. 18200 crore in the revised budget.
Despite the increase in the saving certificates, total additional resources for
the revenue budget could not be met from borrowing from non-banking sources
alone and total borrowing from the banking system is estimated to stand at Tk.
3764 crore. In the original budget, total bank borrowing was estimated at Tk.
3514 crore. The experience of last two years indicates that the likelihood of
inflationary pressures from such bank borrowing is very slim. On the contrary,
such deficit will be helpful for providing essential resources for
development.
29. Total
revenue receipts for FY 2001-2002 have been estimated at Tk. 27239 crore. This
target is 12.6 percent above the original target of FY 2000-2001. The total
target for taxes controlled by the National Board of Revenue has been fixed at
Tk. 20730 crore. This target is 15.2 percent above the original budget estimate
and 13.3 percent above the revised budget estimate for FY 2000-2001. It may be
mentioned here that in first ten months of the current fiscal year, actual
receipts of the NBR increased by 22.48 percent above last year's actual receipts
in the corresponding period. The target for non-NBR taxes and non-tax revenues
has been fixed at Tk. 6509 crore for FY 2001-2002 which is 5 percent above
current year's original target and 10.8 percent above revised
target.
Mr.
Speaker,
30. Total
revenue expenditure for FY 2001-2002 has been estimated at Tk. 22038 crore. This
represents an increase of 12.2 percent above the original allocation for FY
2000-2001 and 6.7 percent above the revised allocation. The continuous increase
in interest payment on cumulative loans of the government, the absorption of
development staff in revenue budget and the cost for operation and maintenance
of development projects contribute to swelling of revenue budget every year.
However, in the budget for FY 2001-2002, special provisions of Tk. 200 crore for
the NAM Conference and Tk. 160 crore for national and Upazila election have also
been proposed. Excluding the special allocations, revenue budget for FY
2001-2002 would increase by 10.4 percent compared to the original estimate in FY
2000-2001.
31. The size of
Annual Development Programme (ADP) for FY 2001-2002 has been proposed to be
fixed at
Tk. 19000 crore. In addition to ADP, a sum of Tk. 622 crore has
been allocated for FFW in the development budget. ADP allocation for 2001-2002
is 8.6 percent higher than the original target of the previous year and 4.39
percent higher than the revised target. About 51.3 percent resources for the
proposed allocation will come from foreign sources while 48.7 percent will come
from domestic sources. Of 9251 crore taka earmarked as domestic resources, Tk.
5201 crore is estimated to be provided by revenue surplus and the rest will come
from the income of government departments and statutory public authorities, sale
of saving certificates and other investments and borrowing from Bangladesh Bank
and other commercial banks.
Mr.
Speaker,
32. In line
with the election manifesto of Awami League, highest priority in sector-wise
allocation has been given to poverty alleviation programmes. In the ADP for FY
2001-2002, total allocation for poverty alleviation programmes including Food
for Work has been fixed at Tk. 6432 crore. In the original ADP for FY 2000-2001,
total allocation for these programmes stood at Tk. 6006.1 crore. In other words,
allocation for these programmes has been increased by 7 percent. In the revenue
budget for FY 2001-2002, total allocation for poverty alleviation (such as
Gratuitous relief, Test relief, VGF, VGD, Housing, allocation for elderly,
distressed women, freedom fighters and health and primary education in rural
areas) is proposed to be fixed at Tk. 3813 crore. There is also an allocation of
Tk. 622 crore for FFW in the development budget as stated earlier. The combined
allocation for poverty alleviation in development and revenue budget for FY
2001-2002 is proposed to be fixed at Tk. 10867 crore which stand at 26 percent
of total budget of the government.
Mr.
Speaker,
33. I would
like to highlight first the allocation for the agriculture sector. Though the
share of agriculture in GDP is gradually declining with economic development,
agriculture still continues to be the engine of growth and the main source of
employment and nutrition for the rural poor. Total allocation for the
Agriculture Ministry in FY 2000-2001 in the original revenue budget for FY
2000-2001 was Tk. 289 crore. In FY 2001-2002, I propose to raise this allocation
by 11 percent and fix it at Tk. 322 crore. In addition to this allocation, a
separate allocation of Tk. 100 crore has been provided for subsidy on
fertilizer. Three new measures aimed at development of agriculture have been
proposed in the revenue budget for FY
2001-2002. First, accurate soil
analysis is essential for development of agriculture. An analysis of soil is
needed for prescribing the dose for different types of fertilizer. So the
provision of the results of soil analysis to farmers would contribute to
reduction of fertilizer wastage, decrease in cost and to preservation of soil
quality in the long run. Unfortunately, soil analysis in Bangladesh is mainly
conducted in permanent laboratories. If plot to plot soil analysis is to be
conducted, the facility of soil analysis will have to delivered at the doorstep
of the farmers through mobile laboratories. I propose to allocate Tk. 13.50
crore in the revenue budget for launching on a priority basis ten mobile
laboratories. Secondly, there has been an unprecedented expansion of
agricultural credit since the assumption of office by the present government.
However, adequate capital in proportion to their requirements could not be
provided to two state-owned agricultural banks. With a view to augmenting
agricultural credit, I propose to allocate Tk. 50 crore in FY 2001-2002 budget
for recapitalization of two agricultural banks. Thirdly, exports of vegetables
will have to be expanded fast with a view to raising the income of the farmers.
Lack of proper packaging facilities impedes export of vegetables. With a view to
providing assistance for packaging through Hortex Foundation, I propose an
allocation of Tk. 4 crore. In the revenue budget for FY 2000-2001, total
allocation for Fisheries and Livestock Ministry was Tk. 134 crore. I propose to
raise this allocation to Tk. 152 crore in the budget for FY
2001-2002.
Mr.
Speaker,
34. A sum of
Tk. 937.1 crore has been earmarked for agriculture sector in the ADP for FY
2001-2002. The corresponding allocation for the previous year was
Tk. 883.9
crore. New agricultural extension policy has been implemented. In the light of
national seed policy, Seed (Amendment) Act 1997 have been promulgated and new
seed rules have been issued. With a view to maintaining the quality of
fertilizer and prevention of import and sale of adulterated fertilizer,
Fertilizer Control Order 1999 has been promulgated. The project for innovative
service and reform in agriculture sector is being implemented with the
assistance of IDA at a cost of Tk. 125 crore. Another project for
diversification and intensification of agriculture at a cost of Tk. 145 crore is
being implemented with the assistance of IFAD. A project for agricultural
research management at a cost of Tk. 152 crore is also under implementation. In
the Fishery sector, IDA assisted Fourth Fishery Project at a cost of Tk. 300
crore deserves special mention. A sum of Tk. 53 crore has been earmarked for
this project in the development budget for FY 2001-2002. A project for the
development of fishery at a cost of Tk. 109 crore has been undertaken with the
assistance of IFAD and I propose to allocate a sum of Tk. 40 crore for this
project in FY 2001-2002. A project for the protection and management of baby
Shad (Jhatka) at a cost of Tk. 51.64 crore has been undertaken. At present 5
percent of GDP and 6 percent of country's total export originate in the
fisheries sector. Emphasis has also been laid on the development of Livestock
sector. A participatory livestock development project at a cost of Tk. 151 crore
has been launched with the assistance of Asian Development Bank. Allocations
have also been provided in the ADP for the development of four veterinary
colleges.
35. So far the
driving force behind food management in Bangladesh was food security. A new
dimension has been added to food management system in view of food
self-sufficiency resulting from extraordinary success in agricultural sector.
The provision of fair price of agricultural products will have to be ensured
through public food management system. With this end in view, food imports with
government's own resources have been discontinued for last two years and food
reserves have been built through domestic procurement. The target for internal
food procurement in FY 2000-2001 was fixed at 13.68 lakh metric tons.
Furthermore, the procurement price of foodgrains is fixed above the market price
in each season. Four projects have been included in the ADP for FY 1991-92 for
construction of new food godowns and repairs and maintenance of existing food
godowns. In the ADP for FY 2001-2002, a sum of Tk. 26 crore is proposed to be
allocated for food subsector. The closing stock of foodgrains on 30th June 2000
was 10.92 lakh metric tons, on 30th June 2001 it is estimated to stand at 8.42
lakh metric tons. According to programme contained in the budget, the closing
stock of public food distribution system is likely to be about 9.66 lakh metric
tons on 30th
June, 2002.
36. Bangladesh
is the sixth biggest source of fresh water in the world. Moreover, the entire
country consists of environmentally sensitive wetlands. Numerous rivers have
formed the terrain of this deltaic Bangladesh and are continuously changing its configuration.
The capricious rivers regulate the hopes and aspirations, sorrows and sufferings
of the people of this country. With the variation of seasons, water in this
country, turns out to be either a blessing or a curse. In Bangladesh, these
mysterious natural problems are compounded by international politics. The
failures of the previous Governments to conclude a long-term water sharing
agreement with the neighbouring country appeared to be an insurmountable barrier
to the development water resources in Bangladesh. Immediately after assumption
of office, the Government of Sheikh Hasina successfully concluded a long term
water-sharing agreement with India opening, thereby, a new vista for development
of water resources. I propose to fix total allocation at Tk. 1061 crore for
development and revenue budget of Ministry of Water Resources for FY 2001-2002.
As many as 90 projects will be implemented by Bangladesh Water Development Board
during FY 2001-2002. To achieve the objectives of the National Water Policy,
preparation of a modern water management plan is underway. Haor and wetland
Development Board has been set up with
Hon'ble Prime Minister as its Chairperson for harnessing and development
of haors (extensive marshland) and swamps. Special projects, for the purpose,
will be undertaken by the Board.
37. In conformity with declared
policy of Awami League, revolutionary changes have been initiated in rural infrastructure during past 5
years. Local Government Engineering Department was allocated Tk. 9382 crore for
implementing various projects in rural areas during FY 1996-1997 to FY
2000-2001. The department has during last 5 years, constructed 22159 kilometres
of dirt road, 9177 kilometres of metalled road and set up 728 growth centers in
the rural areas of the country. I
propose to allocate Tk.. 1160 crore for the department in the ADP for FY
2001-2002. Tk. 158.8 crore has been earmarked in the ADP of 2001-2002 for Rural
Development Board for implementing 11 projects. This includes Tk. 40 crore for
''One House, One Farm'' project which is being implemented under personal
guidance of Hon'ble Prime Minister. I propose total allocation of Tk. 1644 crore
for rural development sector as a whole in the ADP of
2001-2002. This amount
constitutes 8.68 percent of total size of ADP for the coming financial
year.
38. Daniel Bell, an American
social scientist, has rightly observed that in today's globalised economy,
national Governments have become too small to address big problems and too big
to solve the small problems. It is not possible for a national Government to
reach out to the grass-roots level. It is, therefore, imperative to strengthen
the local government to effectively address the problems that beset the
grass-roots level. The Awami League Government is committed to "democratization
of democracy'' by improving the local government system. The election of Union
Councils have already been held. The legal framework for Upazila and Zila
Parisad has been promulgated. Steps will be taken to set up elected local
government at all levels after the ensuing national election. I propose to
allocate Tk. 225 crore for the development for Upazila, Tk. 130 crore for
development of Zila Parisad and Tk. 85 crore for Chittagong Hill Tracts.
Considering the financial conditions of union councils, I propose to increase
the share of government contribution as salary support for the secretaries of
the Union Councils from 50% to 75%
and for this purpose an additional amount Tk. 5.9 crore has been provided
in the revenue budget of the next fiscal year. Pursuant to commitment of the
Hon'ble Prime Minister, I propose to allocate an additional amount of Tk. 10.4
crore as government grant in next year's revenue budget for increasing the
honorarium of UP-chairmen and members. Besides, an allocation of Tk. 1 crore is
proposed as government contribution to the Welfare trust for chairmen and
members of the union councils. The Awami League Government has been actively
supporting the supplementary and complimentary development initiatives of NGO's
and civil society organizations during past five years. This support will
continue in future.
39. About
seventy years ago, the Great poet Rabindranath Tagore ruefully said, "Our motherland has been
eulogized for her abundant sweet water and high productivity. But water which
purifies is itself impure and muddy - one who cures illness is itself a den of
diseases. Misfortune has struck the very foundations of our lives, our water bodies and our crop fields.
The whole country appears thirsty, pale, sick and starved". As a result of rapid
growth of population, urbanization and industrialization, the problem of
environmental degradation has become more acute in innumerable distressed
localities in Bangladesh. For protecting the environment, special emphasis in
the budget has been laid on three areas. First, two projects have been
undertaken in the Sundarbans and Saint Martin's Island for preserving
bio-diversity. I propose to allocate a sum of Tk. 44.30 crore for these projects
in the ADP for 2001-2002. Secondly, three projects have been undertaken at a
cost of Tk. 318 crore for mitigation of arsenic contamination. I propose to
allocate Tk. 75.63 crore for these projects in FY 2001-2002. Thirdly, two
projects have been undertaken for reduction of air pollution.
I propose to
allocate in FY 2001-2002 Tk. 6.78 crore for World Bank supported Air Quality
Management Project and Tk. 7 crore for CNG Project aimed at reducing air
pollution. Furthermore, I propose to allocate a sum of
Tk. 15 crore in FY
2001-2002 revenue budget for implementing a special programme aimed at reduction
of air pollution caused by auto rickshaws. Under this programme the financial
support will be given to auto rickshaws for conversion into CNG system and for
financing supply of CNG.
40. In the
Annual Development Programme for financial year 2001-2002, the highest
allocation has been proposed for transport sector. Development in communication
system accelerates the pace of economic growth and creates employment
opportunities for the poor. Substantial public investment during last five years
has ushered in revolutionary changes in the arena of physical infrastructure. By
successfully completing the construction of Bangabandhu Jamuna Bridge, the
Government of Sheikh Hasina has translated into reality the long cherished dream
of integrating the two geographically separate regions of the country into one.
During past five years, the Department of Roads & Highways completed
construction of 3,720 kilometers of metalled road, 2,160 kilometers of
brick-road and 3,766 kilometers of embankment road. The total length of
permanent bridges constructed during the period is 13,813 metres and that of
bailey bridges is 26,375 metres. Long cherished Buriganga Bridge spanning 1479
meters, opened to traffic on 20th May this year, has been built using our own
resources and indigenous technology. By successfully completing such a huge
work, the local engineers have indeed, set a laudable example which testifies to
their competence. Besides, the present Government has initiated construction of
a number of important bridges. These include, "Shahid Captain M. Mansur Ali Bridge
over the river Padma at Pakshi with the assistance of Japan costing about Tk.
410.13 crore, Shahid Nazrul Islam Bridge over river Meghna at Bhairab Bazar with
DFID assistance at an estimated cost of Tk. 453 crore, Rupsha Bridge at Khulna
with Japanese assistance, Gabkhan
Bridge at Barisal with Chinese assistance, Shikarpur-Duarika Bridge on
the Faridpur-Barisal highway with assistance from Kuwait, Dharala Bridge at
Kurigram financed from own source and
Shangu bridge at Tailardip. Initiatives are afoot for lining up assistance for
construction of Padma Bridge. I propose to allocate
Tk. 3408 crore in the
ADP for FY 2001-2002 for transport sector. The proposed allocation includes Tk.
2290 crore for Roads & Highways Department, Tk. 100 crore for Jamuna
Multipurpose Bridge Authority, Tk. 696.5 crore for Bangladesh Railway and Tk.
105.25 crore for Civil Aviation Authority. Furthermore, a sum of Tk. 342.8 crore
has been allocated to shipping sub-sector. I propose to allocate Tk. 51.8 crore
for World Bank supported Dhaka Urban Transport Project aimed at improving the
transportation system of Dhaka. I propose the allocation of a sum of Tk. 300
crore in the revenue budget for FY
2001-2002 for repair and maintenance of
roads under Roads and Highways Department.
41. A sum of
Tk. 656 crore has been proposed for communication sector in the ADP for
2001-2002. Out of the proposed allocation, Tk. 644 crore will be utilized in
telecommunication sector. The rest will be spent for Postal Department and for
Meteorology Department. Tk. 373.7 crore has been allocated for the extension of
digital telephone in district town project in the ADP of FY
2001-2002. A new
National Telecommunication Policy has been declared in 1998. New opportunities
have been opened for private sector investment in telecommunication sector.
Presently, four private sector cellular telephone companies have been permitted
to market their services. About 278 thousand users have been provided with new
telephone connections. Besides, two more private telephone companies are
operating in the rural areas. Private sector initiatives in telecommunication
sector have resulted in tariff reduction. As a result of dramatic improvement in
telecommunication technology, tariff rate has dropped throughout the world. In
line with recent trends of tariff reduction in the international market, the
Government has decided to reduce BTTB's tariff on Nation Wide Dialing system and
as well as international call charges for local users. I am happy to announce
that the reduced tariff will be effective from 1st July 2001. The reduction of
tariff for the local callers will range from 7.4% to 14.29% for the Asia and the
Africa region. In case of America and Europe the call charge will be reduced by
16.67% while that for SAARC countries by 14.29%. Presently, there are 5
different rates for NWD dialing. These tariff structures will be reduced to
3 slabs from 1st July 2001
resulting in tariff reduction ranging from 13.4% to 36%. Detailed notification
in this regard will be issued separately by T&T Board. It is expected that
despite reduction of tariff the gross receipts of T&T Board will not be
affected as a result of increase in
number of calls.
Mr.
Speaker,
42. Awami
League government inherited a devastated power sector. Effective production
capacity of power in the country was 2,105 megawatt in FY 1995-96. After
untiring efforts of last five years, the effective power production capacity has
been raised to 3,100 megawatt which is sufficient to meet present demand. Per
head power production capacity in 1994-95 was 92 kilowatt hours, which has been
raised to 120 kilowatt hours in 2000-01. In the mean time, agreement with
private sector has been signed for generation of 1188 megawatt electricity out
of which 578 megawatt electricity is being produced at present. In the private
sector, 17 power generation projects are being implemented at a cost of Tk.
8,198 crore. Furthermore, as a result of withdrawal of import duty and VAT on
the import of electric generator, 500 megawatt of captive power is now being
generated in the private sector. I propose to allocate Tk. 2,249.99 crore for
power sector in FY 2001-2002. Out of this, Tk. 559 crore will be earmarked for
rural electrification sub-sector. Rural Electrification Board is providing new electricity connections to 7
villages per day. Since the assumption of office by the present government,
13,713 villages have already been provided with electricity and 32,000 new power
connections have been given to irrigation pumps. Necessary reform programmes are
being implemented for running the power sector on commercial
basis.
43. The present
Government has undertaken massive initiative in exploring oil, gas, coal and
other natural resources and in ensuring their maximum use. With a view to
accelerating the exploration and development of gas resources, the government
has divided the country into 23 blocks and invited bids for domestic and foreign
investment under Production Sharing Contract (PSC). Negotiation has already been
completed for 15 blocks. It is expected that as a result of foreign investment
the production of gas will increase rapidly. In FY 1999-2000 the actual gas
production was 332.30 billion cubic feet. During July-January half year period
of FY 2000-2001, the quantity of gas production was 213 billion cubic feet. In
the development budget of FY 2000-2001, the revised allocation for oil, gas and
natural resources sector was
Tk. 440.02 crore which has been proposed to be
increased to Tk. 653.25 crore in the development budget of FY
2001-2002. Out
of this Tk. 169 crore is earmarked for Madhyapara Hard Rock project; Tk. 99.6
crore for Bara Pukuria Coal Mine and Tk. 118 crore for Third Natural Gas
Development project.
Mr.
Speaker,
44. The
greatest asset of Bangladesh is her industrious and innovative people. Only
through appropriate education it is possible to transform this vast work force
into an instrument for rapid development. With this end in view, highest
allocation has given in the combined revenue and development budget for
education sector in FY 2001-2002. In the FY 2001-2002, I propose to allocate Tk.
6028 crore which is 14.69% of total expenditure in the combined revenue and
development budget. In FY 1995-96, the combined allocation for education was Tk.
3,522 crore only. During last 5 years, allocation in education has been
increased by 66% .The teachers are the moulders of human beings. The salary
support to teachers has, therefore, been increased rapidly. In the budget for FY
2001-2002, I propose to allocate Tk. 1,477 crore as the salary support to the
teachers and employees of schools, colleges and madrasas. In Annual Development Programme of FY
2001-2002, it has been proposed to allocate Tk. 1,405 for Primary and Non-formal
Education, Tk. 718 crore for Secondary and Higher Secondary Education, Tk. 107
crore for Technical Education and Tk. 81.5 crore for University Education. In
comparison with the allocation in the original ADP of last year, the increase in
Primary Education is 4.8% in Technical Education, 27.9% and in University Education, 2.8%. Special
emphasis has been laid on the expansion of Technical Education. The work on
establishment of twelve Science and Technology Universities in old district
headquarters is progressing fast. Tk. 17 crore have been allocated in FY
2001-2002 for the establishment of three new women polytechnic institutes in
three divisional headquarters. A sum of Tk. 21 crore has been earmarked in FY
2001-2002 for the modernization 20 existing polytechnic institutes and for the
establishment of 15 new polytechnic institutes. The work of establishing 13
Vocational Training Institutes and introduction of vocational courses in
selected non-government schools in each upazila are in progress. For these two
projects a sum of Tk. 32 crore has been allocated. It has been proposed to allot
a sum of Tk. 200 crore for stipend of the female students in Secondary schools .
I propose to allocate
Tk. 112 crore for the stipend in Primary education
sector. Moreover, it is proposed to allocate Tk. 18.60 crore for the development
projects under the Ministry of Religions Affairs in next year's budget. Out of
this allocation,
Tk. 14.28 crore will spent for mosque-based children and
mass education.
Mr.
Speaker,
45. The present
Government has taken up an integrated programme to deliver the health services
at the doorsteps of the people. Under this programme an epoch making project at
a cost Tk. 15,500 crore has been undertaken. I propose to allocate Tk. 1,252
crore for Health Ministry in the non-development budget of FY 2001-2002. This is
12.59 % higher than the original allocation of FY 2000-2001. In the ADP of FY
2001-2002, I propose to allocate Tk. 1621.4 crore which is 2.8 % higher than the
original allocation of the current year. In the revised budget of FY 1995-96,
the allocation for Health and Family Planning was Tk. 1611 crore. In the FY
2001-2002, I propose to increase it to Tk. 2873.4 crore. During last five years,
hospital beds have been increased by 5405, 1322 doctors have been recruited, and
the recruitment process of 1182 doctors is at the final stage. Forty four
thousands officers and employees of Family Planning Programme were working in
the development budget on temporary basis. They are being brought in phases
under revenue budget on permanent basis. In the meantime 4000 new nurses have
been recruited. National Nutrition project at a cost of Tk. 643 crore is now
under implementation with World Bank assistance. The main goal of the programme
is to reduce the existing malnutrition of children and pregnant women. Moreover,
a project at a cost of Tk. 330
crore for the prevention of AIDS has been taken up.
Mr.
Speaker,
46. I propose
to allocate Tk. 1466.30 crore in the ADP for FY 2001-2002 for Physical Planning,
Water supply and Housing sector. This includes an amount of Tk. 316.85 crore for
Public Health Engineering Department. The construction work of International
Conference Center in Sher-e-Bangla Nagar at a cost of about Tk. 180 crore is
progressing very fast. I propose to allocate Tk. 25 crore for the successful
completion of Special Apartment project undertaken at a total cost of Tk. 205
crore for the NAM conference. In the budget, I also propose to allocate
Tk.
347.30 for Dhaka City Corporation. Out of this an amount of Tk. 192 crore is
earmarked for Dhaka Urban Transport Project.
47. In
industrial sector, a programme for building 3 new fertiliser factories,
rehabilitation of 2 fertiliser factories and one paper mill has been undertaken.
The estimated expenditure of these 6 projects, to be implemented by Bangladesh
Chemical Industries Corporation, is
Tk. 3,073.71 crore. Four export
processing zone projects at Mongla, Ishurdi, Comilla and Syedpur are being
implemented at an estimated cost of Tk. 275 crore. In FY 2001-2002, Tk. 50.69
crore was allocated against these projects. In Annual Development Programme for
2001-2002, an allocation of Tk. 356.72 crore for the industrial sector has
been proposed of which Tk. 45.75 crore is earmarked for the projects of
Bangladesh Small and Cottage Industries Corporation. By providing allocation for
these projects, income-generating programmes would be implemented. Funds have been allocated for Sirajganj
and Narshingdi Industrial Park, Hosiery Industrial City at Narayanganj and for
fish and agriculture-based industries at Chokoria. In Annual Development
Programme 2001-2002, allocations of Tk. 91 crore for Science and Technological
Research sector,
Tk. 74.10 crore for Mass Communications and Tk. 207 for
Public Administration have been proposed. Tk. 19.70 crore has been allocated for
labour and manpower sector primarily for technical training and
development..
48. Thanks to
continuous patronage of Awami League government, an unprecedented and lively
surge is now visible in the arena of youth and sports. In last 5 years
Bangladesh achieved extra-ordinary success in international sports. On 26 June
2000, Bangladesh achieved test-playing status and emerged as the 10th test-playing nation of the world. A team
of physically and mentally retarded sportsmen and sportswomen, who attended the
Special Olympiad 1999 in the USA on the personal initiative of the Prime
Minister, brought noteworthy laurels. The present Government is making tireless
efforts in building sports
infrastructure, expansion of sports activities and competitions, and in raising
the standards of sports to international
levels through intensive training and practice.
49. The youth
constitutes the majority of population in Bangladesh. With a view to involving
these youth in national development process, the government has undertaken
programmes to encourage them to undertake income-generating self-employment
activities and provision of soft term loan and training. I propose a combined
allocation of Tk. 171 crore for youth and sports sector in revenue and
development budgets. Of this amount, Tk
16.91 crore is proposed in Annual Development Programme for the
development of sports training programme in BKSP, while Tk. 2.00 crore is
included in the revenue budget for expenditure relating to the training,
preparation and participation in the
SAF games.
Mr.
Speaker,
50. A rich and
ancient culture delineated and shaped our national identity. In recognition of
the supreme sacrifice of Bangalees for mother tongue, UNESCO declared 21st
February as the International Mother Tongue Day. The historic Mujibnagar
Cultural Complex is almost completed. As a mark of respect to the Father of the
Nation and to immortalise his memories in our hearts, a monument has been
erected over his tomb at his paternal homestead at Tungipara. Furthermore, Begum
Rokeya Memorial Monument and Shaheed Matiur Memorial Centre are being
implemented. Work is underway for establishing libraries and academies for arts
and culture at district and upazila levels. A programme has been undertaken to
preserve the glories of our ancient history and traditions through restoration,
rehabilitation and maintenance of old mosques, temples and other historic sites.
In current fiscal year, 37 development projects at a cost of Tk. 47.00 crore are
being implemented under the Ministry of Cultural Affairs. In the FY 2001-2002, a
programme for 42 development projects at the cost of Tk. 47.00 crore has been
proposed in the budget.
51. Protecting
the interest of the weak and the neglected segment of society is a
constitutional responsibility on the part of the Government. Immediately after
assumption of office the present Government raised the allocation of the
ministries of Social Welfare and Women and Children affairs. The total
allocation in the revenue and development budget of FY 1995-96 for Social
Welfare Ministry stood at Tk. 106.72 crore. I propose to raise this allocation
to
Tk. 279 crore in the FY 2001-2002. The total allocation in the revenue
and development budgets for the Ministry of Women and Children affairs for FY
1995-1996 was fixed at Tk. 45.62 crore. I propose to increase this allocation to
Tk. 90 crore for the FY 2001-2002. The budget allocation for the Ministry of
Social Welfare includes 3 special allowances for the vulnerable segments of the
society.
Tk. 50 crore is proposed for old age allowance; Tk. 25 crore for
the distressed women's allowance and Tk. 28.8 crore as allowance for distressed
freedom fighters. No Government in the past provided such extensive financial
support in the budget to the disadvantaged segments of the society. The Ministry
of Women and Children Affairs
co-ordinates different programme aimed at
empowerment of women and providing legal aid to them. Nonetheless almost all
development ministries & divisions undertake separate projects for women
development. A survey reveals that the Ministries of Women and Children Affairs,
Education, Social Welfare, Rural Development and
Co-operatives, Information,
Disaster Management and Relief, as well as a Health & Family Planning are
implementing as many as 37 projects at the total estimated cost of Tk. 1,778
crore for the direct welfare of women.
52. To fulfil
the commitment made by Awami League in its election manifesto, the Government
has taken appropriate initiatives for modernisation and improvement of
efficiency of our defence forces - the ever vigilant sentinels of our
sovereignty and independence. With this end in view, the present government has
set up organizations like National Defence College, Military Institute of
Science and Technology and Armed Forces Medical College. Necessary arrangement
has been made to enable these institutions to impart education and training of
international standards. In recognition of efficiency and dedication of our
Armed Forces under the able leadership of the present Government, Bangladesh
today, is the second largest source of troops in UN peace keeping missions.
Presently, 8622 members of defence forces are working for the UN peacekeeping
missions. This international recognition of our defence forces has, on the one
hand, contributed to country's
image-building and on the other hand to an increase in foreign exchange
earnings. Besides, participation of the Army in Asrayan Project, road construction,
relief and rescue operations during national disasters and traffic control in aid of civil
administration, indeed deserves appreciation. Considering the overall role and
legitimate needs of national defence, I propose to raise current year's original allocation of Tk. 3,207 crore to
Tk.
3,320 crore in the revised budget and to Tk. 3,460 crore in FY 2001-2002
budget.
Mr.
Speaker,
53. Experience
of many countries suggests that the responsibility of law and order
administration assumes more complex and wider dimension with economic
development. This is why on assumption of office the Awami League
Government initiated the process of
development and modernisation of the police force in the country. In FY 1995-96,
the revised allocation for the
police force in non-revenue budget (except police ration) was Tk. 518.67
crore. This allocation for police in FY 2001-2002 is proposed at Tk. 845.33
crore. For the ever-vigilant frontier sentinels, BDR, I propose an allocation of
Tk. 353.8 crore for the FY 2001-2002. The allocation is 5 % higher than the current year's
original allocation. The total allocation in the revenue budget for all the
departments under the Ministry of Home is Tk. 1,618 crore. Besides, additional
allocations of Tk. 11 crore for Fire Service and Civil Defence Departments, Tk.
11.5 crore for Police and Tk.
21.30 crore for Department of
Prison have been proposed in the Annual Development Programme for the FY
2001-2002.
Mr.
Speaker,
54. In the last
five years, remarkable success has been achieved under the able leadership of
Prime Minister Sheikh Hasina in the diplomatic front, leading to a new chapter
in the diplomatic history of Bangladesh. A new environment of friendship and
co-operation has been created among
the neighbouring countries. The Ganges Water Sharing Agreement and the
Chittagong Hill Tracts Peace
Agreement have opened up a new horizon for expanding economic development
in the region. Bangladesh has been elected as a member of the Security Council
and has earned the distinguished status of
Co-ordinator of the Less
Developed Countries, has played a pioneering role in the establishment of 5-membeer
BIMSTEC and 8-member D-8, aimed at promoting regional economic co-operation. Our
Prime Minister Sheikh Hasina was awarded the UNESCO Peace Prize for her personal
initiative in promotion of world peace. The 13th Non-aligned Movement (NAM)
Conference will be held at the historic city of Dhaka next year. For FY
2001-2002, I am proposing a
total allocation of Tk. 370 crore for Ministry of Foreign Affairs, including a
lump allocation of Tk. 200 crore
for organising the NAM Conference.
Mr.
Speaker,
55. Our Great
Poet Rabindranath Tagore aptly said: "Mere birth does not make a country your
own. A country remains alien until one knows the country, until one wins it with
one's own might". The valient freedom fighters by fighting a life and death
struggle against the demonic forces have made Bangladesh our own country. Their
supreme sacrifice and glowing patriotism will continue to inspire Bangalee
nation. Unfortunately, before the present government's assumption of office, little effort was
made to establish the freedom fighters in the society in a befitting manner. A
programme was taken up in FY 2000-2001 at a cost of Tk. 15 crore to provide
monthly allowance to 42,000 freedom fighters. In FY 2001-2002, I propose to expand the
programme to 80,000 freedom fighters and their dependants at a cost of Tk. 28.8
crore. Furthermore, the allocation for the wounded freedom fighters has been
substantially increased. In FY
1995-96, the total allocation for the Freedom Fighters' Welfare Trust was only
Tk. 6.6 crore, in FY 2001-2002, I propose an allocation of
Tk. 16.25 crore
for the Trust. In FY 2001-2002, total allocation for the welfare of the freedom
fighters would stand at Tk. 45.05 crore.
Mr.
Speaker,
56. Our War of
Liberation was an ideology-based struggle. Humans die, nations rise and fall but
ideology is eternal. Ideals never die. The war of liberation is, therefore, a
never-ending struggle --- it will never cease. The eternal flame of this spirit
would continue to inspire us for the emancipation of the oppressed people. We
have achieved our political
freedom under the leadership of the
Father of the Nation, Bangabandhu Sheikh Mujibur Rahman. But henious
conspiracies of internal and external enemies stand in the way to our economic
freedom. We have to carry forward this struggle for economic emancipation under
the able leadership of Bangabandhu's daughter Sheikh Hasina. In the past 5 years
we have achieved remarkable success but we must not be complacent. Inspired by
the spirit of the War of Liberation, we have to resist time and again the
internal and external enemies. Echoing the language of the late American
statesman John F. Kennedy, I therefore, summon all of you for joining this
struggle, "Now the trumpet summons us again, not as a call to bear arms, though
arms we need, ... but as a call to bear the burden of a long twilight struggle,
a struggle against the common enemies of man-, tyranny, poverty, disease and war
itself".