Originally posted in The Business Standard on 1 June 2023
The proposed budget for fiscal 2023-24 fails to reflect the targets of direct employment generation. Instead of introducing new initiatives, the government seems content with continuing old projects and extending their time periods.
This approach does not effectively address the urgent need for employment opportunities and relief for the common people.
The government had a golden opportunity to stimulate the economy and curb inflation through robust employment generation measures. It is through employment generation that meaningful relief can be provided to the masses. The government’s initiatives, as well as collaborative efforts with the private sector, require a more proactive approach to tackle the unemployment crisis.
On a positive note, the budget does introduce several measures aimed at preserving the local industry and making necessary tax adjustments, which in turn can contribute to employment generation.
To truly address the issue of unemployment, there is a dire need to increase the budget allocation for ministries responsible for employment generation. In particular, the foreign employment ministry’s budget should be given more prominence, especially in support of expatriate workers. These workers not only contribute to the economy through remittances but also deserve support upon their return to ensure they can reintegrate into the job market.
Furthermore, it is disappointing to see the lack of action in terms of wage adjustments in certain private sectors.
The budget missed the opportunity to announce minimum wage standards across various sectors, leaving the private sector workers without government intervention.
While there may be cases of increased expenditure for government officials and employees, it is crucial for the government to exert pressure on the private sector to prioritise fair wage practices. Unfortunately, this budget fails to address this issue adequately.
The consistent budget allocation for the ICT sector is a welcome move. The importance of investing in this sector cannot be overstated, and maintaining a steady budget allocation reflects the government’s recognition of its significance.
However, as a whole, this budget falls short in addressing the pressing issue of unemployment, particularly among graduates. It merely reiterates old initiatives without introducing any substantial new measures.
Dr Khondaker Golam Moazzem, research director, Centre for Policy Dialogue