Govt drops ‘budget rationalization meeting’

The government has decided to drop the very important ‘budget rationalization meeting’ for the upcoming budget of 2020-21 fiscal year.

An official of the finance division involved with budget preparation said, “We have dropped the budget rationalization meeting with the line ministries because of time constraints and social distancing during the coronavirus pandemic”.

Sources in the finance division said the Ministry of Health and Family Welfare, Ministry of Disaster Management and Relief food and the Ministry of Food are unable to arrange the meeting because of the lack of time and manpower due to the pandemic.

Because of the cancellation of the rationalization meeting, not only the line ministries will suffer but also the next fiscal growth estimation cannot be estimated, they said.

Every year, the budget process goes through three stages.

Firstly, a 'tripartite meeting' takes place among all line ministries and division. ‘Tripartite meeting’ refers to the meeting among finance ministry, planning ministry and the line ministries to discuss and fix the next three years’ budget outlay and issues budget circular two.

Secondly, the finance division holds budget 'management resources meeting' with secretaries of all ministries and divisions.

The last and final ‘budget rationalization meeting’ is held between the line ministries and the finance ministry to discuss the rationality of the line ministries’ allocations for the budget, but this year, this final and very important meeting will not take place due to the coronavirus pandemic.

Earlier, Finance Minister AHM Mustafa Kamal told Business post the next fiscal year budget will be announced on June 11 in the national parliament as per the directive of Prime Minister Sheikh Hasina.