The government has set an allocation of Tk30,531.99 crore or 8.07% of the total budget, for 25 ministries aimed at preventing the adverse impacts of climate-induced hazards and for adaptation and mitigation.
This year the budget allocation has increased by Tk5,000 crore from the outgoing fiscal year.
However, the government has set an allocation of Tk37,8467.51 crore to these ministries and divisions, according to a climate budget report titled “Climate Relevant Allocations and Expenditures 2022-23” published by the Finance Ministry.
As per thematic areas, climate change has secured 4.5% of the total budget for FY 2022-23.
Finance Minister AHM Mustafa Kamal in his budget speech on Thursday said that tackling the effects of climate change will be one of the government’s priorities. He claimed that the allocations in this sector reflect that commitment.
Along with the amount, the percentage of allocation in climate crisis has also increased in contradiction to FY 2021-22 as the allocation was 7.26%. The government allocated Tk25,456.88 crore in the proposed and Tk26,407.33 crore in the revised budget.
The Ministry of Agriculture has got the highest amount allocation with Tk8,666.31 crore which is nearly 36% of the total allocation for the climate budget. The Local Government stands in the second position with Tk3,767 crore followed by the Ministry of Water Resources with Tk3,484.11 crore.
Additionally, according to the thematic areas of the Bangladesh Climate Change Strategy and Action Plan (BCCAP), Food Security, Social Protection and Health combine has secured the highest allocation of 41.87%, followed by infrastructure with 27.78% and mitigation and low-carbon development with 13.36%.
The budget allocation of the Ministry of Environment, Forest and Climate Change (MoEFCC) has also increased in FY 2022-23 with Tk1,501 crore -- Tk762 crore in operation and Tk739 in development. It is 0.22% of the entire budget for FY 2022-23.
In FY2021-22, the allocation was Tk1,224 crore followed by Tk901 crore in 2020-21. The ministry will spend a total of 42.17% of its budget on tacking climate crisis which is worth around Tk633.12 crore.
Climate change expert and Emeritus Professor of Brac University Ainun Nishat welcomed the proposed budget, saying: “The sectorial budget allocation in different ministries is a sign that our government takes the issue of climate change very seriously. Other climate-vulnerable countries follow our footprints, so this is a good initiative.”
He, however, showed concerns about whether the allocations are being actually spent on climate-related initiatives that need to be ensured and the process should be transparent.
“I have raised the question many times that are the officials of other ministries are concerned and skilled enough to incorporate the effect of climate change in all of their projects? The Padma Bridge is an ideal example for our country to consider the effect of climate change and that’s why the height of the pillars had to increase. Are ministries like LGED, Roads and Highways department doing the same calculation?” he added.
Prof Ahmad Kamruzzaman Majumder of Stamford University said: “Overall the increment of allocation is affirmative but if we put this into perspective, the budget of installing a water treatment plant of Dhaka Wasa is Tk1,500 crore. So. the budget of MoEFCC is still being ignored in a current circumstance where our country has become a hub of all kinds of pollution.”
Tax withdrawal on polythene
This year’s budget has taken a few positive and negative approaches toward tax imposition on different goods. Among the harmful ones, the proposed 5% supplementary tax withdrawal on all types of polythene bags, plastic bags (including oven plastic bags) and wrapping materials made of polyethylene has been the most contradictory one.
Finance Minister AHM Mustafa Kamal said in his speech that this initiative will boost the businesses of this sector. However, activists have strongly opposed this rebate.
Siddika Sultana, executive director of Environment and Social Development Organization (ESDO), criticized the proposal.
“This is very unfortunate that at this age of movement against pollution, our finance minister has proposed such an anti-environment decision. Our government has committed at this year’s United Nations Environment Assembly to join the global efforts to reduce plastic waste altogether, this proposal completely goes against that.
“Not only it will encourage the plastic producers but also it will create a lot of plastic wastes in our already poor waste management system. We will be certainly going backward with such provisions in the budget,” she added.
The minister also proposed to impose a 1% import tax on solar panels which were previously exempted from any tax.
Criticizing the move, Prof Ainun Nishat said: “If this has been to facilitate local entrepreneurs, we have to understand our local market hasn’t turned into a strong producer of solar panels. In that case, to achieve the target of renewable energy such taxation on the solar panel is condemning.”
On the other hand, VAT exemption has been proposed on the manufacturing stage for Autoclaved Aerated Concrete Block and import duty tax has been proposed to slash from 25% to 5% on Sewage Treatment Plants (STPs) for industries to make the country environmentally sustainable and pollution-free, the minister said.
