The proposed budget for the 2024-25 fiscal year will increase the tax burden on the public due to indirect taxes, said GM Quader, the Leader of the Opposition in the Parliament and Chairman of the Jatiya Party.
Speaking to the media on Thursday (6 June) following the budget announcement, Quader expressed his concerns.
He said the budget outlines a revenue target of Tk5,45,400 crore, with 62% coming from indirect taxes and only 36% from direct taxes. "This increases the tax burden on ordinary people. There is no indication that inflation will decrease," he added.
Quader pointed out that with income tax at just 36%, import duties at 10.3%, VAT at 38.1%, and supplementary duties at 13.8%, even the poorest, including rickshaw pullers and beggars, are affected. "We see no initiatives to support the poor," he lamented.
He warned that the current economic environment would not attract foreign investment, leading to a lack of job creation. "Following this budget, Bangladesh will face a significant economic crisis," he predicted.
Quader criticised the budget as being routine and lacking innovative solutions.
He emphasised that the country is grappling with economic crises, inflation, rising prices of daily essentials, unemployment, and a foreign currency shortfall.
"Reserves are depleting daily, devaluing our currency. There are no effective measures in this budget to address these issues," he said.
The budget size is Tk7,97,000 crore, with operational expenses at Tk5,06,171 crore and development expenses at Tk2,81,453 crore.
Quader highlighted that revenue falls short, with a target of Tk5,45,400 crore, leaving a deficit of Tk2,51,600 crore. This deficit is being met through domestic and foreign loans.
Quader expressed concern about the reliance on loans, noting that Tk1,27,000 crore will go towards servicing foreign debt, leaving only Tk90,700 crore available for use.
"We need to borrow Tk1,60,900 crore domestically, with Tk93,000 crore going to interest payments on domestic loans and Tk20,500 crore on foreign loans. The interest on these loans will have to be paid in the future," he warned.
