Control inflation

From the first budget of Bangladesh to the last fiscal year, it can be observed that the size of each budget has increased over time. According to economists, although the amount of money in the budget has increased, the budget has not expanded in proportion to the economy. However, after 53 years, there are questions about how much of the expectations regarding the budget are being implimented.

On Thursday afternoon, Finance Minister Abul Hasan Mahmud Ali will announce a massive budget of Tk 7,96,900 crore in Parliament. This will be the first budget of the Awami League-led government after coming to power for the fourth term. It is expected to generate Tk 5,41,000 crore from revenue alone. The target amount for borrowing will be the remaining Tk 2 lakh 56 thousand crore. It is seen as a significant challenge amidst the crisis.

While we are presenting a large budget, there doesn't seem to be much change in the implementation rate of the budget. Even if funds are allocated to the health sector, they may not be utilized effectively. According to economists, the budget did not see the necessary qualitative changes. However, this year's budget poses significant political and economic challenges for the government given the circumstances. Additionally, there is pressure on the government to fulfill the conditions of the international monetary fund.

However, if this time the budget is formulated without considering inflation control, it will create new pressures on the economy. It is important to remember that if the government makes any significant promises, there are doubts about how effective they will be.

This year's budget was announced at a time when the country is experiencing extreme inflation and economic crisis. Amidst the Ukraine war, the ongoing COVID-19 pandemic, and the dollar crisis, the government finds itself in a confusing situation. It is believed that in this budget, the government's efforts to bring balance to revenue and expenditure may lead to increased pressure due to inflation in the prices of goods and services. This will further exacerbate the suffering of people with low incomes. Economists believe that compared to previous years, this year's budget will pose some challenges. As a result, there is speculation about how much importance the government will place on maintaining stability, controlling inflation, revenue collection, and promoting growth.

In the previous fiscal year's budget, the target was to keep the average inflation rate within 6 percent, but the government failed to achieve that target. This was because inflation in the country was almost 9 percent. In this regard, it will be crucial for the government to prioritize effective measures to reduce inflation in the new budget.

Throughout the last fiscal year, the marketplaces in the country were constantly resonating with the outcry of consumers. In this scenario, if taxes on essential commodities are further increased in the new fiscal year, how will the ordinary people already struggling with the crisis of rising living expenses manage to bear the burden of increased costs? Therefore, the government needs to find solutions to address issues such as the increase in inflation, the crisis in the labor market, and the limitation of social assistance programs.