Budget 2011-12 Should Be Investment Friendly

Abstract

In this article, Dr. M. Azizur Rahman argues that the 2011-12 budget for Bangladesh must prioritize an investment-friendly environment to facilitate the country's transition from an agrarian to an industrial economy. The author emphasizes that investment is the primary engine for employment and the effective utilization of land, labor, and capital. He suggests that Bangladesh should capitalize on its abundant, low-cost labor particularly the growing female workforce in the garments sector to attract labor-intensive industries shifting away from China. To support this growth, the article calls for significant improvements in physical infrastructure, including power, gas, and a modernized communication network of roads and railways. Additionally, Rahman recommends fiscal reforms such as tax holidays for industrial loans, expanding the tax net (as less than 1% of the population pays income tax), and providing targeted subsidies for food security to deserving farmers.