A balanced budget and market conditions

The relationship between commodity prices national budget and lifestyle is very close and real. How a family maintains their daily life depends on needs income and cost of daily necessaries. When the price of every necessary commodity is at a tolerable level and within the purchasing power of the common people, they live comfortably. When the prices of daily necessities become disproportionate to the financial stability of the common man, poverty, starvation and family turmoil prevail in the poor and ultra-poor families. On the one hand, due to the increase in commodity prices, the black shadow of suffering descends on public life. On the other hand, due to profiteers, black marketers, there is a chaotic situation in the country. National budget is a detailed plan and financial statement of all activities of a state. It is the responsibility of the various stakeholders of the government to present a good budget. It can become mass oriented with concerted efforts. Otherwise it will become an issue of public suffering rather than public welfare. The economy around the world is going through a very rough and tough position. Its other name is recession. The main objective of a budget is target oriented and to sustain economic growth by redistributing wealth, creating jobs and raising incomes. To meet this goal, the budget is increasing every fiscal year. One of the biggest challenges of the government budget is generally to increase the amount of revenue in proportion to the gross domestic product (GDP). There are economic tensions all over the world. In this situation, experts are of the opinion that there is no chance for a developing country like Bangladesh to be tempted by the idea of an ambitious budget.

Prices of essentials across the country are soaring day by day without any respite for consumers. The abnormal price hike of daily necessaries hits worsts the people from the lower rung of the social ladder. The brunt of spiraling prices of essentials and inflated costs of living are being borne by millions in the low- and fixed-income group. The poor and the middle class people as well want the prices to come down immediately. More than ever the prices of essential commodities are going up by leaps and bounds. All previous records of high prices have already been broken. Rice, fish, meat, chicken, edible oils, and vegetables are being sold at exceedingly high prices. The price hike hits the poor people seriously. There are many positive impact of inflation in the economy along with negative impact on standard of living of poor and middle class citizens. The middle income class people are most sufferer in the inflation as they are tending to maintain their social status and standard of living with their minimum savings. It is found that reaction from most of the respondents in the excessive increase in the prices brings pathetic measures over the target population that ultimately influences their time of price hike are not so visible in the time of minor price hikes. But the respondents are found to search for different alternatives in medium to higher level of price hikes in food items, accommodation and educational expenditures. The reactions of the respondents are significantly different in the earning, food expenses and educational expenses. So the entrepreneurs and the authorities have to take necessary measures to minimize the impact of price hikes to facilitates to help the middle income people in maintaining their standards and life styles as that class is the energy suppliers in the economy. The stagnation of economy is inevitable if the middle class people are failed to afford their consumptions during inflation period.

Meanwhile, the proposal and preparation of budget 2023-2024 is going to be completed and it will be passed by the Parliament at the end of June 2023. Budget, what matters for? Is budget size or fiscal year a matter? Today’s Bangladesh is a country of emerging economy. So, its budget size is not a factor. But how it is handled or implemented, this matters. Fiscal year, the other side. again is a matter to some experts or analysts. In every year, the budget is forecast with aims to promote growth rate, equal distribution of wealth, to reduce money inflation, poverty alleviation, income generation, employment creation etc. Bangladesh is mainly an agricultural based country. The amount of allocated money shown in the proposed budget for this sector seemed to us not rational. For modernization of different sectors, the amount of money is not adequate to meet the actual demand. In reality, farmer’s interest and needs are very often have been ignored and demands of various departments are not met. The sectors like agriculture, health and education are always in the deficit budget demand So how could we say that it is a people- centric budget?

The authorities concerned have to control the intolerable and galloping market prices of daily necessities. It is essential that by strong market monitoring they must stop artificial price hike by a section of traders. Otherwise, many of the achievements of the government are likely to go in vain. The people expect that the authority concerned would look into the matter and take necessary strict measures so that the prices of essential commodities remain within the reach of their buying capacity. Inflation or increase in price level of essential products of households is occurred due to high fiscal deficits, poor monetary policy, unsustainable public borrowing, volatile exchange rates, demand or supply push of products or services.

In addition to the above review, I opine and suggest in line with the common sense of the common people. Every year budget comes, the budget goes. The budget should speak the good of the common people. The budget must reflect the interest of the have not’s, education for all, to reduce discrimination of the poor and the rich. If the poor become poorer with the systematic problem of the budget, the soundness of the budget will be lost. The benefit must go to the court of commoners. The budget must have its vision. It must widen the quality of lives. General livelihood might be enhanced. It can’t be invisible. It must not be kept in papers or limited to four walls. It must be made target oriented with a group of skilled manpower & experts. Its implementation must be made honest and transparent with good leadership, coordination, and planning. In the implementation stage, there should be a thorough monitoring and supervision. After that, it is to be evaluated with its repeated exercise. Again all ADP budget should be well examined, scrutinized, investigated properly by a panel of experts. Finally, budget execution must be maintained with proper discipline, sincerity, top most honesty and purity. The budget should not be declared as a govt. budget, rather it must be termed and reflected as peoples’ budget. No pilferage should be allowed to direct it in a bad shape. If there is strong coordination, good governance, and capability to manage a budget will appear befitting and can reach its goal with its efficient management. In the long run, the budget will be result oriented.

However, the following questions haunt us. Will price hike and announcement of Budget 2023-24 increase troubles of common people? How much will the new budget announcement hold the reins of the rise of price hike? Is Socio-economic development possible without a balanced budget and market conditions In this regard, two schools of opinion prevail at the expert level - one group is of the opinion that this budget will increase the helplessness and suffering of the people - on the other hand, the number of beneficiary classes will increase and the issue of social and economic inequality will be created. In addition, political instability, mutual mistrust in different circles, selfishness, greed, extortion, corruption, in market economy take a high ambitious capitalistic formula by which societal elites get prone illegally achieving asset depriving the poorer section of society. The beneficiaries of budget like capitalists, businessmen, industrialists and mediocre belong to its evil mechanism. All due privileges remain out of reach by the common people. Only an ideal and balanced condition between government machineries and market position can solve disaster, disparity in economy. Otherwise socio-economic development is not possible. Finally, we can say that, transparency and accountability in budget management should be brought to the attention. All stakeholders including global inflation, price inflation, market controls must come up with effective measures to curb the rise in commodity prices.

The writer is former Deputy Director General, Bangladesh Ansar & VDP