Ongoing economic woes not reflected in budget: CPD

The Center for Policy Dialogue (CPD), in its review of the proposed budget for FY2024-25, said that the necessary steps to address ongoing economic concerns are missing from the budget document.

Dr. Fahmida Khatun, Executive Director of the think-tank, said this while speaking on ‘National Budget 2024-25: CPD’s review’ held at the Bangabandhu International Conference Center, on Friday.

She said that the targets of inflation, GDP growth and investment in the budget are very ambitious and not realistic.

Many targets of economic indicators in the budget will not be met, she asserted. Failing to realize the ongoing economic challenges, the steps taken to address the challenges in the budget are weak and inadequate, she pointed out.

Dr. Fahmida said, “The time of the budget is very challenging. We expected this budget to be very innovative. That there will be creative and some bold moves. Because the traditional budget will not be able to solve any kind of problem in challenging economic times.”

"The new budget seems to us similar to the previous budget. Current problems and traditional crises have arisen in the economy, this budget could not provide adequate steps or directions to solve them," she said.

Speaking about the facility of black money whitening, she said the provision of whitening black money by paying only 15 percent tax and without any scrutiny is discouraging for those who pay taxes regularly.

"We have seen in the last few years that revenue collection does not increase much by giving this facility. Rather, it incentivises those with black money and discourages those who pay taxes regularly," said Dr. Fahmida.

CPD fellow Dr Mustafizur Rahman said, "It's not fair for taxpayers to pay a 30 percent tax on legal income while only being asked to pay 15 percent on illegal earnings. Similarly, companies holding on to hidden money for a long time shouldn't get away with a 15 percent tax rate. There should be stricter laws with penalties for earning illegally, including additional taxes."

"Note that a new provision has been added to not ask any question regarding the income. Suppose, they whiten the money by paying tax but the Anti-Corruption Commission later enquires about it. But that cannot be done under the current budget proposal," he said.

Speaking at the question-answer session in the press briefing, Mustafizur Rahman said the proposed budget has no measures to provide relief to the common people from the onslaught of inflation.

"If you calculate the inflation, the low-income people who did not have to pay tax last time will have to pay tax this time as the tax-free limit has not been increased," he said.