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Budget and creating opportunities for employment June 12, 2007

Posted by bdoza in BANGLADESH, Budget, ECONOMY.
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Budget 2007-08 acknowledged that creation of increased employment opportunities is essential for social empowerment. It proposes the extension of existing macro-credit program and ‘allocate Tk 550 crore for employment generation in rural areas outside the ministry-based employment generation programs in the next fiscal year’. But it is not clear to us what employment generation programs are there in the ‘ministries’.

The budget also acknowledge that ‘it is extremely essential to stimulate labour-intensive small and medium enterprises (SME’s) requiring less capital. The growth of this sector is sluggish due to constraints in access to finance’. An endowment allocation of Taka 100 crore has been proposed in the budget for this. Bangladesh Small and Cottage Industries Corporation (BSCIC) have also taken initiatives to create a Trust Fund for providing industrial loans to which the Government will allocate Taka 23 crore. One may ask question whether the amount is adequate to create enough jobs.

It is said that competitive business environment and macroeconomic stability accelerate pro-poor growth. Government is trying to adopt a well coordinated fiscal and monitory policy along with strong support from the external sector and the capital market.

It is acknowledged that the private investment and FDI could not reach the expected level for a variety of reasons. Among these are:

a) underdeveloped financial sector

b) liquidity problems of the bank

c) inadequate and irregular supply of electricity and gas

d) colossal loss of Power Developmental Board(PDP)

e) widespread irregularities and deterioration in law and order situation

f) inefficiency of Chittagong and Mongla Port

 

The Government is trying to remove these constraints through specific

work-plans. But many of the difficulties will not change much such

power supply despite the best effort.

The business community already raised question about the tax imposed on the raw materials and Capital machineries. They are thinking that these will hamper the growth of the local industry and keep us dependent on foreign goods.

Proper attention also should be given to IT Industry. It is said that infrastructure development work has begun to build a high tech park. IT Equity Entrepreneurship Fund is established with 100crore taka

Most of the employment generation is touched in the budget indirectly and scattered in different pages and may be beyond many people’s comprehension.

Bdoza

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