Austerity measures essential

Talk of IMF loans is being discussed both in the public and private domain these days. However, as we have repeatedly said in this column without taking proper economic measures, particularly strict enforcement of austerity in all matters, any amount of loan will not improve the country’s economic conditions.

The primary goal of adopting austerity measures into a country’s fiscal policy is to decrease government debt and ensure a good position in the balance of payment. With the national economy under severe strain due to various factors, the government’s decision to adopt austerity measures in public spending is most welcome.

As is well-known, countries worldwide are bracing for financially unpredictable times ahead. For Bangladesh, the first move should be to cut down imports of luxury items. Unfortunately, some signs exploiting crisis periods, unscrupulous people circumvent laws to import exorbitantly priced items and, when caught, remain nonchalant.

With prices of essentials not following a set pattern and employment becoming scarce, eschewing ostentation is a key necessity. While the authorities can urge the people to live moderately; the actual change will come when there is a nationwide belt-tightening.

In these testing times when economists are predicting a recession, it’s always prudent to shake off complacency and adopt austerity measures. Prime Minister Sheikh Hasina has again underlined the need to cut down expenses and urged everyone to tighten the belt.

We believe that the people should support the ongoing austerity drive as it has not happened in a single country and it has not happened due to any fault of the government. Economies, including some of the highly industrialised and developed ones, are bleeding almost everywhere on account of the rising living cost triggered by the energy crunch and its atrociously high import cost.

If the citizens support these measures at their own level in lowering their level of usual consumption and checking misuse of electricity and fuel, things will recover soon.

While the austerity measures introduced by the government are appreciable, we as citizens would also be helping the country greatly by adopting a frugal lifestyle.

Rather, from this saving culture and austerity, we may be habituated to lowering personal electricity and fuel consumption, which may help us in maintaining a clean environment in near future.

The government must do its part. We urge the government bodies to stop extravagant expenditures, such as giving luxury cars and bungalows to high government officials. They get drivers, petrol and maintenance allowances. Their bungalows come with free electricity, gas, water, phones and servants; all paid with taxpayers’ money. The country must get out of this arrangement. This step alone will ensure massive savings.

It is common knowledge that a considerable amount of government budget is spent on the purchase of office furniture, expensive vehicles and on foreign junkets and training by officials. Curtailing these expenses alone would save the country billions of taka.

In some countries, much wealthier than Bangladesh, the governments have withdrawn the facility of official cars to its staff, saving billions every year. This step was taken because it needed to be done in the name of rationality.

Bangladesh can take such prudent measures to reduce expenses. We need to do it out of necessity; not just rationality. When the commoner with a fixed and limited monthly income pays for petrol to keep his vehicle functional, why cannot the highly-paid officials pay for it? When the commoner has to pay for electricity, gas, water and just about everything, why cannot the officials do the same?

By taking such steps the government can bring down the expenses by a great deal and there will be a lesser burden on the taxpayers.