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‘Allocate up to 5% of GDP for health sector to salvage it from collapse’

Instead of a traditional allocation for the health sector, the government should give clear directions with short, mid and long terms projects and adequate fund allocation to rescue the sector and fight the Covid-19 pandemic,” former Commerce Minister and BNP leader Amir Khasru Mahmud Chowdhury, told Dhaka Tribune’s Ibrahim Hossain Ovi in an interview.

 

What should the government include in the proposed budget for FY21 before having it approved in parliament?

The Covid-19 pandemic has shown the real picture of Bangladesh’s health sector, where people die without treatment. With the present strength of the sector, it is quite impossible to ensure healthcare for everyone.

Before passing the budget in parliament, the government should give clear directions as to how it will rescue it and make it stable amid the crisis.

Currently the allocation for the health sector is the lowest among South Asian countries, 0.92%. The government has to increase allocation up to 5% of GDP. Secondly, it has to set short, mid and long-term projects with specific budget allocation accompanied by immediate implementation moves.

On the other hand, these projects should be comprehensive and open for all. People are spending 70% for health, while the government is unable to provide the remaining 30% of the cost.

How can we feed the new poor, who have lost jobs due to the pandemic?

Eighty-five percent of people in the informal sector have lost their jobs and slipped below the poverty line. The government has to provide food and cash support to meet daily needs and health service of those people during the pandemic.

Social safety net allocation should increase and the government has to divert funds from other sectors, such as power.

It will be very difficult to recover the economy unless there are demands for goods in the domestic market created by the consumption of local people.  For creating local demand, the government has to provide cash support to the poor.

If the government fails to do this, the economy will fall into a recession and pulling out will be very difficult.

 

What about employment?

Retaining employment and creating new jobs should be top priorities. For this, the government should invest in new opportunities to generate employment and develop human resources.

On the other hand, the government should also create a special fund for migrant workers, who have returned and/or are in the process of returning, so that they become self-sufficient by doing business. The government can also utilize those who are experienced working abroad in different sectors, by promoting those sectors.

The SME sector contributes 86% of the country’s employment. Special attention should be given to this sector to create jobs and salvage the present shortage of working capital.

Tell us how we can improve food security amid the pandemic.

Agriculture is the only positive sector, which gives us hope. Government allocation for the sector should continue and attention should be paid to mechanization.

Without any nepotism or corruption, the government procurement of paddy should continue by ensuring fair prices.

On the other hand, there is a strong need for developing a supply chain for crops growers, so that they can sell their products at better prices and reduce post-harvest waste.

(DT)

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