Increase IT sector budgetary allocation

Digital technologies are transforming developing economies and are the way forward for Bangladesh. Information technology makes our life easier and creates many opportunities to facilitate economic growth. With the expansion of ICT in the private sector, the government is encouraging automation and e-GP processes in different areas of the public sector as well. We believe that the government should allocate appropriate budgetary allocation to implement its digital policy. According to a report published in this newspaper on Wednesday, the Tele Consumers Association of Bangladesh reflected the view. The association urged special emphasis on the IT sector in the upcoming national budget.

Tk 1,721 crore for FY 2021-22 was allocated in the budget for the development of the IT sector in the country, which was 66 per cent more than the revised budget for FY 2020-21. Earlier, Tk 1,415 crore was allocated in the budget for the fiscal year 2020-21, which was 18.7 per cent more than the revised budget for the fiscal year 2019-20. TCAB expects a continuity of increasing IT sector allocation in the upcoming FY 2022-2023 budget, the report adds. According to Murshidul Haque, Convener of TCAB, "A comprehensive action plan is required to effectively implement the Fourth Industrial Revolution. It is time to give special importance to the IT sector in the budget for future generations".

The IT sector is growing exceptionally fast because of some key factors. The factors include talented youth coming up with innovative ideas and collaboration with foreign countries to meet the IT needs of growing companies in Bangladesh. Outsourcing services is another reason because it increases revenue and employment chances. A continuous increase in e-commerce activities is also boosting the IT industry's growth at a fast pace.

Bangladeshi IT companies now have the experience to execute big projects. These local companies have successfully implemented big projects locally, such as driving licence, national identification card, vehicle registration plate, Hajj management, and data centres. It is possible to replicate these projects without much effort in other underdeveloped or developing countries.

Be that as it may, to take full advantage of the ongoing Fourth Industrial Revolution, Bangladesh should put a greater impetus on the IT sector. To digitise the economy, the government needs to support the components of its digital policy with appropriate allocation of resources.

In the mid-18th century, the first industrial revolution harnessed the power of steam to mechanise production; the second used electric power for mass production; and the third leveraged information technology to automate manufacturing. The current — fourth — industrial revolution is characterised by a fusion of technologies, bringing together the physical, digital, and biological worlds. Compared to previous revolutions, the fourth is much more knowledge-based, requiring new competencies and a highly technologically skilled labour force well-versed in advancements such as robotics, artificial intelligence, nanotechnology, genetic engineering, virtual reality, blockchains, and quantum computing. The fourth industrial revolution will disrupt existing processes and technologies like the previous three industrial revolutions, but with enormous impact and faster speed.

Bangladesh has to be prepared to meet the challenges and requirements of the fourth industrial revolution. For that to happen, increased budgetary allocation is essential. However, there should be transparency regarding the allocation. Previous experience shows that the allocated budget was mostly spent on buying hardware, and hardly any amount remained to purchase software, services, or maintenance.

The authorities concerned have developed a comprehensive role and responsibility matrix in the context of digital policy. However, this ambitious plan needs to be transparently monitored. There should be a clear plan of how local companies can be involved in the digitalisation process of ministries, departments, and directorates. It should be remembered that while the software and ITES businesses have been exempted from the corporate tax until 2024, the sector has suffered a lot during the pandemic.