ZCZC
BSS-45
COVID19-CPD-SUBSIDY
Govt should prioritize health sector during this crisis: CPD
DHAKA, April 13, 2020 (BSS) – Private think-tank Centre for Policy
Dialogue (CPD) today suggested the government to put concentration on
health sector during this crisis situation by injecting more subsidy
as deadly COVID-19 pandemic has gripped not only Bangladesh but also
entire world.
“We should prioritize life highest as economic activities would have
no value without existing of human being and that’s why health sector
should be focused highly,” CPD Executive Director Fahmida Khatun said
in a virtual press briefing.
She also urged the government to ensure supply and availability of
essential medicines as well as diagnosis and treatment of sick people
during their presentation titled “COVID-19: Initial Assessment of
Public Policy Intervention and Proposals for Food and Income Security
of Marginalized People”.
CPD distinguish fellow Professor Mustafizur Rahman, research
director Dr Khondaker Golam Moazzem and senior research fellow
Towfiqul Islam also joined the briefing from their respective places.
Welcoming the stimulus package announced by the government as a
timely and much-needed support to deal with the impact of pandemic,
Fahmida Khatun said the stimulus package should have specific plans
for supporting informal sector workers and returning migrant workers.
CPD proposal said a special stimulus package is immediately required
for the migrant workers who have already returned to the country, as
well as for thousands of migrant workers who are expected to return
after the global recession starts.
Mustafizur Rahman said Covid-19 stimulus package, in reality, comes
in a form of liquidity support and is dependent on country’s banking
sector.
Mention that loan dependent package will hurt more the ailing
banking sector, Rahman said, “A careful loan disbursement should be
ensured under the package as ‘willful defaulters’ again might take
chance to hurt the banking sector.”
Golam Moazzem urged the government to reconsider interest rate in
the stimulus package for the farmers.
The think-tank body opined that the government will need to pursue
a more expansionary fiscal approach which is equally important to
boost domestic demand along with providing security for the people to
protect them from hunger and assure the marginalized citizens about
their livelihood.
It also proposed two-month cash support package for marginalized
people. The cash support will require Taka 26,962 crore to Taka 29,852
crore for 6.84 crore to 7.57 crore marginalised people.
Towfiqul Islam said average monthly lower poverty line in
Bangladesh was Taka 1,862 per person according to the Household Income
and Expenditure Survey 2016, which is now Taka 2,165 adjusted for
inflation.
The average household comprising four persons, CPD considered two
thresholds for the self-employed population – 1.7 crore households
with monthly income below Taka 10,000 per month in the lower case
scenario and 1.9 crore households with monthly income below Taka
11,000 per month in the upper case scenario.
The CPD proposed Taka 16,000 in cash transfer for each household for
two months, Taka 8,000 per month.
Turning on the reduction of public expenditure, CPD said the
government should identify the dire need to spare the less necessity
for saving fund for priority sectors.
BSS/PR/MAK/MRU/2059hrs