Budget offers no hope of reducing living costs, creating jobs: CPB

Budget offers no hope of reducing living costs, creating jobs: CPB

The Communist Party of Bangladesh (CPB) has expressed reluctance to welcome the proposed national budget, terming it a "big hollow budget". In a statement on Thursday, June 11, the party said the budget offers no hope of reducing living costs or creating new employment; rather, it will exacerbate inequality.

CPB President Kazi Sajjad Zahir Chandan and General Secretary Abdullah Kafi Raton said the proposed budget is large in size but hollow in terms of implementation capability. The Tk 9.38 lakh crore budget allocates Tk 1.27 lakh crore for interest payments on loans while planning to borrow nearly Tk 2.50 lakh crore to meet the deficit. On one hand, a large new debt-dependent budget, and on the other, interest payments becoming a major expenditure — this, they said, proves the budget's hollowness.

The party also alleged that the budget offers no clear guidance for controlling the existing high inflation. It expressed little confidence in the government's ability to achieve the targets for growth and inflation reduction.

On tax policy, CPB said the policy of expanding the tax net under IMF conditions will harm workers, farmers, low and middle-income groups, and small traders. Only a small group — big businessmen, bank owners and importers — will benefit, the statement added.

The party also questioned how much of the Tk 3.16 lakh crore development expenditure will go to productive sectors. While acknowledging increased allocations for health, education, agriculture and social security as positive, CPB expressed scepticism about the government's implementation capacity.