Our present requirement is about 5,000 mw, but we produce 3,000 mw. Therefore, our shortfall at the moment is 2,000 mw. According to our technical experts, to meet the growing demand, we have to add to our national grid an additional 600 mw, on average, every year over the next three years.

In other words, by 2010 we need to have new generation of at least 3,800 (2,000+1,800) mw of electricity if the country is to be freed from the curse of load shedding by that time. The budget proposal falls far short of this requirement. We definitely need more funds and a more aggressive approach towards this sector.

According to various reports, Tk 15,000 crore was spent for the power sector during the 5-year rule of the immediate past BNP-led coalition government. We should have had at least 1500 mw of electricity with this money. Instead, we got only 80 mw. What happened to the rest of the money is anybody's guess. The finance adviser did not say anything about this in his budget speech

The people expect the caretaker government of Dr. Fakhrudding Ahmed to unearth this despicable scam in the power sector, and bring those who were behind it to book.

Compensation package for BPC
The finance adviser has proposed allocation of Tk 7523 crore to compensate for the accumulated loss incurred by the Bangladesh Petroleum Corporation (BPC) over the years.

While BPC attributes this loss to the sale of their products at subsidised rates, the people at large think that a sizeable portion of this loss is due to inefficiency, mismanagement and corruption of the BPC officials.

The question has, therefore, come up as to why the public will be asked to bear that portion of the loss for which they are not responsible?

VAT
In an effort to extend the vat net, the budget proposes VAT on the consultation fees of specialized doctors and lawyers. We remember when the then finance minister Saifur Rahman imposed VAT for the first time on the sale of sweets, the sweet shop-owners instantly increased the price of sweets by an amount which was even more than the imposed VAT.

Consequently, while the consumers had to pay a higher price for buying sweets, the sweet traders got a chance to inflate their wallets in two ways -- by selling their products at higher prices, and depriving the government of even a portion of the vat (realised from the consumers) in course of their normal practice, which most, if not all, of them are reportedly accustomed to, which is concealing 50 to 60 per cent of their sale from the tax authority.

There is no reason why we may not see the same thing being repeated in the case of doctors and lawyers. Even if we think that the doctors or the lawyers will be more honest and sincere in paying the VAT, the chance of them being subject to unnecessary hassle cannot be totally ruled out.

Our suggestion would be to withdraw the VAT proposal for doctors and lawyers and, instead, closely monitor their earnings and ensure that they pay a reasonable amount as income tax.

As we all know, in any indirect tax measure like VAT, the actual sufferer is the user, not the producer or the service provider. Again, such measures are discriminatory in the sense that the burden is, in the ultimate analysis, thrust upon the shoulders of the consumers only.

Since most of the people of this country are poor, such measures adversely affect majority of the populace. Our appeal to the caretaker government would be to reduce, even avoid where possible, indirect taxes which directly affect the common people.

Agricultural and rural development
To contain the galloping price hike of essential items, especially food items, is the biggest challenge for the caretaker government. The finance adviser has rightly emphasised the need for increase of agricultural production in the face of the country's ever-increasing population, and reduction of cultivable land.

To that end, his proposal to set up an endowment fund of Tk 350 crore to facilitate agricultural research as a long term measure, to give a subsidy of Tk 750 crore for diesel supply to farmers at a reasonable price, and to increase subsidy for fertiliser as an immediate measure, is a most welcome move. Our only appeal to the CG in this respect would be to ensure that these benefits go directly to the farmers.

It may not be a bad idea to talk to Begum Matia Choudhury, a former agricultural minister, to find out how, during the Awami League government of 1996-01, the country became self-sufficient, nay surplus, in food production, and why in only 6 years since then the country has turned into a food deficit area necessitating import of a substantial amount of food grains from other countries.

Women's welfare
The proposal to introduce maternity allowance for poor women during pregnancy is a laudable approach. The finance adviser certainly deserves credit for this innovative idea. The proposal to extend the network and increase the amount of monthly allowance for hapless widowed and destitute women and elderly persons is also a praiseworthy move. The allowance may, however, be increased to at least Tk 250 instead Tk 220 as proposed in the budget.

Capt. Husain Imam is a freelance contributor to The Daily Star.