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Discussants at a seminar yesterday criticised the proposed budget for 2003-2004 for not having any clear guidelines to address corruption, law and order and overall impediments to investment. They also urged the government to contain public expenditure.

The Centre for Policy Dialogue (CPD), a civil society think-tank, organised the dialogue, titled 'State of Bangladesh Economy FY03 and Budget Responses FY04'. Professor Rehman Sobhan, chairman of CPD, moderated the dialogue, held at CIRDAP auditorium in Dhaka.

Eminent economist Devapriya Bhattachariya, who is also the executive director of the CPD, presented the keynote speech. Binayek Sen, senior research fellow of Bangladesh Institute of Development Studies (BIDS), said Bangladesh has been passing through a development plan which is lacking in terms of prioritised projects.

Momtaz Uddin Ahmad, member of Planning Commission, said no development project should be extended more than twice. He termed the budget pro-growth document, aiming at poverty alleviation. Moshiur Rahman, former principle secretary to former prime minister Sheikh Hasina, criticised the allocation in 'block amount' for its unknown utilisation.

Professor Mainul Islam said the projected 20.08 per cent growth in revenue expenditure in the proposed budget is not acceptable. He criticised the government for allocating small amount of subsidy to the tune of Tk 300 crore for the agriculture sector.

AKM Shamsuddin, former president of the Foreign Investors' Chamber of Commerce and Industry (FICCI), said the proposed budget did not address the governance, law and order and corruption issues. Devapriya Bhattachariya, in his keynote speech, said the budget lacks guidance on pervasive corruption and security for life and property.

"However, without significant alleviation of the micro-level impediments to investment, ranging from low efficiency of public utilities and financial system to lack of security for life and property, dysfunctional judicial process and pervasive corruption, the anticipated supply side responses will hardly be forthcoming," Bhattachariya said.

Foreign direct investment during July-February of 2002-2003 fiscal was 28 million US dollars, 31 per cent less over the corresponding period of the previous fiscal, keynote paper said. The ADP implementation during the period between July-March of the 2002-2003 fiscal is 45.20 per cent (Original) and 50.70 per cent (Revised), it added.