TechViewsBudget 2009-10
What's in for IT, telecom and science?
On June 11, Finance Minister AMA Muhith unveiled the proposed budget for fiscal 2009-2010. In addition to the pressure of having to meet demands of different key sectors with limited resources and great expectations, the minister also had to take into account the demands of the people from ICT industry, and anyone and everyone remotely or directly connected to it. The promise of a digital Bangladesh by the year 2021 made the expectations even higher from this year's budget. In this issue of StarTech, we have looked into the pros and cons of the proposed budget and what experts are thinking about it. The proposed budget for fiscal 2009-10 aims at making technology accessible to all and this was sharply reflected by the allocation of Tk 563 crore in ICT and telecommunication sectors, which is a giant leap from the Tk 265 crore in the revised budget for fiscal 2008-09. The allocation includes Tk 142 crore in Annual Developed Programme for science and ICT ministry, Tk 221 crore for post and telecommunication ministry, a special allocation of Tk 100 crore for ICT development and Tk 200 crore for equity and entrepreneurship fund for ICT promotion. The finance minister also said that automated system would be introduced in the administration, educational institutions, land and health sectors and tax administration phase by the phase within a few years. If successfully implemented, an automated system would increase transparency and reduce corruption and hence fulfill the government's pledge of a digital Bangladesh. The commitment to connect the country with the second submarine cable for providing internet service to more people is likely to give ICT a major boost. "We have to use information and communication technology extensively for accelerated development. Therefore, we are moving ahead with a dream of establishing digital Bangladesh by 2021. The transition to digitisation process will, on one hand, help accelerate production and on the other hand, facilitate curbing corruption," said Muhith. The minister was also hopeful that the employment in ICT sector will rank second only to textile sector by 2021. Mustafa Jabbar, president of Bangladesh Computer Samity, has termed the proposed budget a milestone -- a great achievement of Bangladesh for being able to leap from the 'Agricultural Age' to the 'Digital Age', bypassing the 'Industrial Age'. He was particularly impressed by the government's massive plans for power sector, the current state of which many consider to be the single largest obstacle to bringing about digital Bangladesh. The finance minister informed the government's decision to increase power generation by 950 MW this year and 2810 MW more by 2013 under different public and private initiatives. Jabbar appreciated the decision of withdrawing tax from internet usage at educational institutions but failed to understand why it did not apply for home users. The increased taxes on monitor, printer, toner and refill have also worried him and he suggested that they should immediately be withdrawn. The proposed tax on mobile handsets and non withdrawal of tax on SIM cards is likely to hinder the growth of the fast growing telecommunications industry in Bangladesh, fear industry people and experts. In the proposed budget, a whopping 25 percent customs duty has been imposed on the import value of each set, scrapping the existing flat import duty of Tk 300 on each set. Bangladesh Mobile Phone Importers' Association (BMPIA) has opposed the new duty structure saying they will have to pay at least Tk 800 for import of each low-priced handset. This decision will make a new handset and connection more expensive and perhaps deter first time buyers availing this service, people who need it the most. Habibullah N Karim, president of Bangladesh Association of Software and Information Services, has welcomed the allocation of Taka 500 crore for ICT development but hoped to see the allocation of more Tk 500 crore in the revised budget. "We are happy to see that the finance minister has rightfully emphasised the use of indigenous software and IT enabled services for the sustainable development of this sector. We also hope that the government will undertake all possible e-government projects in line with the action plan given in the ICT Policy 2009," says Karim. Although highly applauded by ICT people, Prof Haseena Khan of the department of Biochemistry and Molecular Biology of the University of Dhaka has described the proposed budget by saying "Our frustration stems from the fact that to our policymakers ICT is the only science and technology worth pursuing" and like to see specific allocations in the biotechnology research sector in the revised budget. She said it was high time to grow this promising technology which could improve the quality of human life by leaps and bounds. All in all, the proposed budget for fiscal 2009-2010 has had a mixed bag of responses from people related to ICT and other scientific fields and industry. With recommendations and suggested changes from the experts and people the final budget is expected to bring about positive change in the country.
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