Budget neglects macroeconomic challenges

The Centre for Policy Dialogue (CPD) has criticized the government’s decision to legalize black money at a 15-percent tax rate in the new budget, calling it unethical and contradictory to the Awami League government’s election manifesto. In a post-budget opinion, the CPD stated that this provision is unfair to honest taxpayers who are already paying a 30 percent corporate tax rate.

The CPD also expressed skepticism about the government’s target of expanding the economy by 6.75 percent and reducing inflation to 6.5 percent in the next fiscal year. They believe that the budget will fail to curb inflation and may even worsen the consumer price index in the near term.

Executive Director of the CPD, Dr. Fahmida Khatun, highlighted the multiple macroeconomic challenges facing the country, including high inflation, low foreign exchange reserves, and weak currency. She criticized the budget as being out of touch with the current economic reality and called for more effective measures to stabilize the economy.

Research Director of the CPD, Dr. Khandker Golam Moazzem, described the budget as an outdated version that does not address the country’s current economic challenges. He warned that the proposed tax measures could further widen non-food inflation and increase energy prices, exacerbating the inflationary pressure on the general population.

The CPD urged lawmakers to reconsider the budget and take more effective measures to address the country’s economic challenges. They called for austerity measures within the government’s expenditure and emphasized the need for parliamentary discussions on the proposed budget.