Mokarram Hossain :
The Centre for Policy Dialogue (CPD) at a budget dialogue on Wednesday expressed concerns about the proposed budget for FY 2024-25 as it does not seem to align with key economic indicators like GDP, inflation and private investment, which could lead to missed targets.
Initiating the dialogue, Fahmida Khatun, Executive Director of CPD, pointed out that the projected economic indicators for upcoming fiscal, such as inflation rate and GDP growth, seem overly optimistic and fail to reflect current realities.
For instance, while the GDP growth target for FY25 is set at 6.8 per cent, public investment is expected to decrease from 7.5 per cent to 6.1 per cent, and private investment is anticipated to rise significantly from 23.5 per cent to 27.3 per cent.
She said that high food inflation has put pressure on the livelihood of poor people, yet the amount of food aid has been reduced in the budget.
Allocation for priority social sectors also remains a source of concern, she added.
Hossain Zillur Rahman said the country is stuck in the political-economic iron triangle.
There is no accountability; strategic inefficiency and laziness are evident, and an attempt to institutionalize corruption is visible.
The CPD organized the dialogue at a city hotel, participated by political leaders, economists and leaders from different trade associations. Dewan Hanif Mahmud, editor, Banik Barta; Rasheda K Choudhury, executive director, CAMPE; Syed Manzur Elahi, industrialist and former advisor to the caretaker government; Razequzzaman Ratan, president, Socialist Labour Front; and BNP leader Rumeen Farhana also spoke at the event.
The discussants at the event were critical as they said the government is promoting institutionalization of corruption by allowing the holders of black money to legalize their undeclared assets through payment of 15 per cent tax without any question. Whereas, regular taxpayers will have to pay up to 30 per cent tax – a discrepancy that has evoked widespread criticism.
The CPD also criticized the move to keep the tax-free income threshold unchanged at Tk 3.5 lakh for the next fiscal year. The limit should be increased to enable low income people to offset the effect of persistently high inflation, it upholds.
Anisul Islam Mahmud, deputy leader of the opposition in Parliament, highlighted syndication as a significant contributor to inflation. He said that inflation cannot be curbed solely through monetary and fiscal policies. He also pointed out the government’s inefficiency in managing electricity prices, which further fuels inflation.
He criticized the government for sponsoring corruption, noting the lenient measures like a 15 per cent tax rate and complete amnesty for whitening black money, which institutionalize corruption. For a pity cause, farmers were throwing into the bars for only a few thousand takas, whereas big fishes who were laundering thousands of crores of taka abroad are not being caught and punished. Why this discrimination?
Mahmud said in his political life, he has never seen such a weak position of the economy. This money earned through “theft, robbery and murder.
If I get a chance to whiten money next year by paying 15 per cent, then why would I pay tax? Why do this stupidity?
We hear that lists are made of who owns which house in other countries, including Canada and Malaysia. Why are they not being caught after being identified?
MA Mannan, chairman of the Parliamentary Standing Committee on the Ministry of Planning said that one must remember that inflation is a by-product of growth. Again, while inflation is increasing, wages are also increasing at the same time.
Appreciating the government, he said during the tenure of this government, we have seen that electricity has reached every house, there are community clinics in upazilas and at the same time a lot of achievement has come in agriculture.