Unusual spending in the healthcare sector has increased in the coronavirus situation, prompting government to quest for money beginning of year.
Expenditure on healthcare including purchase of vaccines and this cost will increase in future. On the other hand, due to stagnation in trade and development activities, revenue target is not being achieved at the desired rate. As a result, even if the income does not increase, the expenditure continues to increase. This has put a lot of pressure on financial management. In such a situation, the government will focus more on raising money to meet the expenses in the new year.
According to the National Board of Revenue (NBR), the revenue for the five months from July to November fell short of the target by Tk 25,006 crore. Export growth slowed to 7.59 percent, to $228 crore, and import spending fell to $123 crore. In this situation a new year has started. However, this time the challenge is different than other years. The main thing is to raise money. Therefore, experts think that the government should put more emphasis on raising money from foreign sources.
It is learned that the government has received 203 crore US dollars so far. Efforts are being made to get more help anew. This money is being spent on the implementation of the incentive package announced by the government. Economists have urged the government to implement the package of Tk1,21 ,000 crore quickly. If this money reaches the real victims, the wheel of industry will gain more momentum. SME and export sector will be strengthened. This will increase employment. Industrial production will also increase. According to Finance Ministry sources, half of the incentive package loans have not yet reached the victims.
Finance Minister AHM Mustafa Kamal has given a message of hope for the new year economy. “The economy is in the right place, in a good position," he told the media recently adding that the economy is in a much, much better position which no one could have imagined.
From March to June last year, 3.59 crore people lost their jobs due to coronavirus pandemic. Economic growth fell short of the target by 3 percent.
The government declared a 66-day general holiday in coronavirus pandemic.
This led to a major collapse in trade, commerce and industrial production. As a result, the last three months of the fiscal year (April-June) failed to achieve the economic growth target due to the catastrophe. At the end of the financial year, the growth stood at 5.24 percent. However, the situation has changed since July. But the second wave started in November. As a result, the economy is showing signs of thunder storm again.
Meanwhile, the country's second major export earner, the garment industry, has been hit by the second wave of COVID-19 pandemic. As BGMEA, our exports to the United States have declined by 7 percent during this period. In Germany, it has decreased by 10 percent. Spain fell 6 percent, France 15 percent, Italy 30 percent and Japan 26 percent.
According to the people concerned, if the vaccination activities start inside the country, the fear will be removed and people will be more involved in all kinds of activities. Besides, the momentum of the economy will return if the incentive package loans reach the victims.
Former senior finance secretary of the finance ministry Mahbub Ahmed hailed such an assessment. He said that raising revenue in the new year will be a big challenge.
In the meantime, the coronavirus vaccine will come. Expenditure will increase in various sectors including vaccination. By keeping it connected, revenue collection will be poor.
He said although there was a good response from the foreign sector last year, it was not certain how much would be received in the new year.
However, with positive growth in exports and remittances, some of the revenue deficit can be filled. However, the government will have to focus more on raising money from foreign sources.
The World Economic Forum recently said there are three major emerging challenges in post-coronavirus economics and recovery.
These include reconsidering economic policies to reduce inequality and increase social mobility, identify new sources of economic growth, and focus on new goals to increase economic performance.
Former IMF adviser Dr Reza Kibria said that vaccination would also be a challenge. Because vaccination in human body will increase self-confidence. Ordinary people will be more involved in the activities of the economy, he also said adding that then the development activities will become normal.
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