The finance minister has made changes in a great number of fields from banking to trade to state owned enterprises since he took over. He brought about changes in the banking sector beginning with the appointment of private management in Janata Bank and Agrani Bank and setting in motion the privatisation of Rupali Bank. The economy was in a critical condition -- a near empty till depleted of foreign exchange reserves, sluggish revenue generation, high borrowing leading to gaping budget deficit and stagnated investment to maintain a budget balance. He put a brake on current account expenditure and revamped taxation. He brought the budget deficit to a comfortable 4% of the GDP this year and raised foreign exchange reserves to around $3 billion.

The finance minister has been able to make more people pay tax, and income tax payment recorded an impressive 16.7% growth this fiscal. But he could not really increase the tax-GDP ratio that remained stagnant at around 10.5%. He boldly went for trade liberalization, gradually bringing down tariff barriers. But he could not really reap the benefits of his reforms because of his myopic vision and for failure of the other cabinet members. It's a serious challenge for the finance minister to implement the proposals of the budget as his cabinet colleagues also stand in its way.

Another important factor must be included in our national budget. We know government is nurturing many losing concerns and organisations. Every year the government has to experience a huge national loss due to mismanagement in these organisations. The ordinary citizens pay high amount of taxes every year and government nurtures the employees of these organisations. As citizens of the country we have the right to learn from the finance minister, particularly during the budget session, about the latest developments in these organizations, but no such effort has yet been taken keeping the ordinary citizens in dark. They are just the sharers of the losing concerns. Our economists must give a thought to this point. The poor people cannot afford to bear it further.

Electricity stands as the source of many development plans and proposals, which claims serious setback at present causing huge amount of national loss. A revolutionary step and further enhanced budget in this field we expected. With 2000 MW of power shortage Tk 4,286 crore allocation for the energy and power sector -- a mere 14 per cent higher a figure from the revised budget of this year -- looks insufficient.

Tk 50 crore program fund for assistance to small farmers affected by natural disasters has been set up -- to help small farmers make up for losses due to natural disasters in absence of crop insurance. It is a laudable step. It might be helpful initiative for them. The raising of allowance for the senior citizens also deserves appreciation. Its proper utilisation, however, remains questionable.

The industrialists, particularly in the garment sector, have enjoyed tax holiday. In the present budget, all the garment industries have been brought under tax net which invited anger and mixed feeling of some owners. Again the sick industries will try to revamp their income. So this step is right. Otherwise, only the service holders who remain under tax net happen to be the sufferers of government tax policy. Again, when all the garment industry owners have to pay taxes, they will try to further increase their production, which can be considered a positive out come.

The budget has given the highest allocation to the education sector as it had in every previous budget. There is no way to develop human resources without educating the citizens. Every government puts at least verbal emphasis on education. But what real change has come to our education? The quality of education and the condition of the people involved in education sector hardly seem hopeful.

Eminent economist Wahidduddin Mahmud said: "The budget proposal does not provide any clear guideline regarding how to address the risks to economic growth and tabulation. The rather belated decision to withdraw the opportunity of whitening black money is most welcome. But what is the rationale for still keeping this tax concession in the case of purchasing cars, houses and land in posh urban areas? These are precisely the uses of black money that are relatively easy to detect, hence the rationale of continuing with the tax concessions is doubtful."

Debapriya Bhattacharya, another eminent economist of the country and Executive Director of Centre for Policy Dialogue, said: "Poor country's budget should be on the basis of income. But in Bangladesh expenditure is given importance. The budget is made in the hope of getting foreign aid. If it is not received, then the government borrows money form the bank which creates inflation." I fully agree with this comment. We should first decide how much we are earning now. On the basis of our earning, the expenditure should be balanced. Otherwise the burden of loan will continue to increase exercising a serious setback to our national economy.

The former Finance Minister and Chairman of the AL economic affairs cell, AMA Muhit, said at a press conference: "The coalition government has made the budget keeping 12 per cent cluster allocation aiming at looting. 12 per cent cluster allocation will not reach even 20 per cent people. It is very sad that the benefits of the government decisions hardly reach the poor. Year after year the same way is followed to alleviate poverty but the change seems very negligible. It shows that the existing way needs to be changed. No budget gives that right direction. As a result the situation continues to remain as it was. To speak the truth, in spite of showing some appreciable steps this year's budget cannot be fully appreciated. No revolutionary step has been taken in this budget."

Saifur Rahman has tried to improve the rural economy by supporting agro-based industries and continuing the incentives to agriculture. This year's Tk12,000 crore subsidy to agriculture will continue and the proposed withdrawal of infrastructure development surcharge will further boost the rural revamping effort. The agriculture minister's overall budget also increased by a huge 42 percent. Rebates on agro-processing, jute and textile industries are extended for two more years. The rural non-crop sector that helps poverty alleviation by creating waged employment also stands to gain as duties and tax have been withdrawn on capital machinery accessories and inputs. Tk 20 crore skill development fund for readymade garment workers can also be a beginner for better productivity. Agro-based industries assistance programme will be increased from Tk 100 to 150 crore. All these proposals sound good but who will ensure their proper and timely implementation?

Three governments -- the coalition, the caretaker, and the next -- will have to implement this budget, which seems a rather tough task. This year's budget is the 36th budget since we achieved independence but no mentionable change is discernible as the guideline of alleviating poverty, which has plagued the life of the majority.

Md. Masum Billah works for PACE Program, Brac Head Office.