The proposed national budget for FY2024-25 failed to embrace innovative approaches to address current economic challenges, said think-tank Centre for Policy Dialogue (CPD).
“Challenges that Bangladesh is facing currently require creative and bold solutions that go beyond traditional budgeting methods,” CPD Executive Director Dr Fahmida Khatun said on Thursday (6 June).
“The budget failed to embrace innovative approaches to address Bangladesh's current economic challenges,” she added.
She raised concerns about the government's ability to manage the increasing debt burden, particularly in light of its reliance on bank loans.
While she applauded the government's decision to raise taxes on the wealthy, the eminent economist also condemned the proposal to legalise black money through a 15% tax payment.
“It potentially benefits special interests without generating significant revenue and lacks both social and economic justification,” she added.
Raising concerns about the social safety net in the proposed budget, she said, “Very limited allocations are left in the budget for the truly vulnerable as significant portion goes towards pensions and subsidies.”
CPD also pointed to the National Board of Revenue's consistent failure to meet revenue targets over the years.
The think-tank said reforms are required, including technological upgrades and improved human resources, to achieve the ambitious revenue goals.
“Households already struggling with inflation will be further burdened by the new taxes on consumer goods,” Dr Fahmida said.
CPD doubted the feasibility of the medium-term framework with optimistic economic targets, particularly for GDP growth and foreign reserves.
The CPD executive director said adjustments were made solely to meet the International Monetary Fund (IMF) requirements – not being in sync with Bangladesh's current economic condition.
The targets for GDP growth, investment, and foreign reserves do not align with the current economic reality," she added.
Regarding the effectiveness of proposed measures to reduce commodity prices, CPD highlighted the need for strong market regulation.
