Staff Reporter :
Most people are apathetic about the national budget, and their nonchalance attitude surfaced in a survey conducted recently.
In a recent survey titled ‘New Government, National Budget, and Citizens’ Aspirations’ conducted jointly by the Centre for Policy Dialogue (CPD) and Citizen’s Platform for SDGs, concerning results were revealed.
The survey gathered responses both online and through social media, amassing 2,249 responses via Google Form and 8,048 through various social media interactions.
The findings disclosed that 64 percent of the participants expressed ‘Zero’ expectations from the government in the upcoming budget, contrasting with the 36 percent who anticipated initiatives from the budget.
Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue (CPD), shared a keynote paper at a city hotel in Dhaka, highlighting the survey results and the public’s desires for the forthcoming budget.
Among the 36 percent of respondents expecting measures from the upcoming budget, over half offered genuine budget-related suggestions, whereas the remainder proposed non-budget-related ideas, as detailed by the survey.
In the survey results, it was noted that, among the various budget recommendations, the most significant response was for measures to promote decent employment in the upcoming budget. Specifically, about 21 percent of the 2,249 responses collected through Google Form and 8,048 from social media emphasised the need for fiscal action to tackle unemployment.
Additionally, education (17.51 percent), social protection (12.09 percent), creating an inclusive society (8.03 percent), and skill development (7.6 percent) were highlighted as other crucial areas that should be prioritised and strengthened in the forthcoming budget, as per the survey responses.
During pre-budget discussions, Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue (CPD), highlighted the challenging economic landscape in Bangladesh. He specifically pointed out persistent inflation, escalating debt burdens, and sluggish economic growth as the three main obstacles facing the country currently.
Debapriya Bhattacharya, while analysing the causes of high inflation in Bangladesh, highlighted several contributing factors.
These include significant monetary expansions marked by rapid credit growth, substantial depreciation of the taka against the dollar, central bank borrowing to cover budget deficits, irregularities within the banking sector, increased production costs due to adjusted electricity and fuel prices, and non-competitive market behavior.
Bhattacharya also pointed out market manipulations by vested interest groups as a critical factor contributing to the persistent inflation, which has remained above 9 percent for 13 consecutive months.
Regarding the escalating debt risk, Bhattacharya, who also serves as the convener of the Citizen’s Platform for SDGs in Bangladesh, identified key causes. These include persistently low revenue generation, roughly around 9 percent of GDP; sharp depreciation of the taka leading to higher debt servicing liabilities; and inflation’s impact on capitalization.
He noted a growing reliance on borrowing for debt servicing, which is exacerbating the debt risk. Taking private sector debt into account, Bangladesh’s current debt-to-GDP ratio stands at 42 percent, indicating an increasing burden and risk associated with debt management in the country.
Debapriya Bhattacharya emphasised the concerning imbalance in Bangladesh’s debt structure, stating, “The government’s loan from domestic sources is almost double compared to the foreign debt, which is a sign of big problems.”
He also highlighted a specific issue, noting that despite Bangladesh’s track record of never defaulting on debt payments, there remains an outstanding unpaid debt of approximately $5 billion in the energy sector.
Furthermore, Bhattacharya pointed out that the government’s fiscal space for expenditure is shrinking due to slow economic growth.
At the same event, Anisul Islam Mahmud, a veteran parliamentarian and Jatiya Party lawmaker, expressed deep concerns about the financial sector, stating, “I think the money is being laundered. The financial sector has become weak.”
Mahmud also highlighted the distressing situation in the banking sector, remarking, “Ten banks have become so weak that they have to merge. There is a capital shortfall of Tk30,000 crore for these banks, and Tk 54,000 crore defaults.”
The event featured contributions from other notable figures, including CPD Distinguished Fellow Dr. Mustafizur Rahman, former Planning Minister MA Mannan, former Environment and Forest Minister Anisul Islam Mahmud, and Rasheda K. Chowdhury, Executive Director of Campaign for Popular Education (CAMPE) and core group member of Citizen’s Platform. Their insights collectively shed light on the complex challenges facing Bangladesh’s financial and economic landscape.
