Editorial
Keeping track of budgetary performance
Mid-term review should prove useful
FINANCE Minister A M A Muhith, true to his promise at the time of presenting the national budget in June last year, has submitted a half-yearly performance report to the parliament. Thereby he has set a precedent, not in a ritualistic sense but quite substantially at that, so we would like to believe. The budgetary performance has been subjected to parliamentary accountability. We would add first step taken towards that.
The MPs on both sides of the aisle are informed, so too are the people, of the status of implementation of the budget at the mid-way point. For instance, where things are on course, where have these drifted et cetera. While we greet the finance minister's sense of accountability, we would like to point out that information by itself is not a sufficient condition or proof of accountability. Unless the knowledge gained is critiqued, analysed and used as a tool for accelerating programmatic utilisation of allocations and ensuring quality of public expenditure in general it's all going to end up in a mechanical exercise.
Surplus of nearly Tk 1000 crore past the half-way point is not an unmixed blessing. Insofar as it represents the residue of unspent amount it implies a deficit in benefits that could have accrued to projected beneficiaries had there been a fuller utilisation of the given allocations. Anyway, it is better than misspending. Turning to revenue collection, it has shown a laudable upturn that needs to be built on.
Another positive trend is the progress in ADP implementation at 29 percent in first six months, historically perhaps the highest ever, but otherwise way short of the 50 percent mark. Now the acceleration in ADP implementation in the remainder of the year does entail a concern for quality. There should not be any mismatch between meeting financial targets and accomplishing physical ones with an ensured quality of output.
The above-350 percent increase in foreign assistance inflow is welcome given the history of pipeline bulges. As we see it, this, together with increased sale of government saving instruments, must have bolstered ADP utilisation, but we have to keep an eye on interest payment.
The way the entire budgetary instrument is utilised has a bearing on microeconomic management which needs to be fully assessed. We have a problem with inflation. It is attributed to price hike in the international market and increased remittances and foreign currency reserves, but with prudent monetary and fiscal management leading to stepped up productivity and supplies, inflation can be contained within safe limits.
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