Proposed budget fails to address macroeconomic challenges, crises: CPD

Staff Reporter :
The proposed budget for the coming fiscal year (2023-24) is unscientific, non-political and bureaucratic as the people’s expectations have not been reflected properly, according to the Centre for Policy Dialogue (CPD).

“The proposed budget has failed to address the ongoing macroeconomic challenges and crises. Such a budget is not expected in the time of general election,” said Debapriya Bhattacharya, a distinguished fellow of the private think-tank while speaking a discussion on the CPD Budget Dialogue 2023 at Lakeshore Hotel in Dhaka on Sunday.

The economist also said the proposed budget must be amended for the sake of the country people.

In her key-note paper, CPD Executive Director Dr Fahmida Khatun said that the proposed national budget seems far removed from the underlying macroeconomic reality as there is a significant gap from the budgeted targets.

“The proposed budget fails to address the most pressing challenges. The current reality is hyperinflation. There is no reflection in the budget system to deal with the ongoing crisis,” she said.

Energy advisor and energy expert of Consumers Association of Bangladesh (CAB), Professor Shamsul Alam, said, “Although the government is happy with the big budget, we are apprehensive. The power and energy sector is in a vulnerable position.”

Barrister Sameer Sattar said, the year of conservative investment is underway. At this time, it will create obstacles in meeting the demand of workers’ wages.

“I think if the tax-free limit is Tk 5 lakh, it will help the inflationary market a bit,” he said.

Rasheda K Chowdhury, advisor to a former caretaker government, said that educational institutions and NGOs have been included under the Companies Act.

“An educational institute in the city can pay taxes but how can a rural educational institute pay corporate tax?” she asked.

The former chairman of NBR, Mohammad Abdul Majeed, said that the income tax law is being passed before the budget is passed. It is not the right decision, he said.

CPD’s Fellow Prof Dr Mustafizur Rahman said children have been ignored in the proposed budget while they suffered education loss during the Covid-19 pandemic.

Labour leader Taslima Akhter said that inflation is currently “over 10 per cent” but there is no discussion on increasing wages in the national budget for labourers.

For the sake of the workers, the allocation to the social security sector needs to be increased rather than reduced, she said.