Both recognition and solutions to the current economic crises are insufficient in the proposed budget for FY2023-24, said Dr Fahmida Khatun, executive director of the Centre for the Policy Dialogue (CPD).

She also said that the budget of FY24 is proposed at a very challenging time when macroeconomic stability is broken and there are multifaceted pressures.

Moreover, there are external pressures. The export earnings are declining. The flow of remittances is not as expected. Moreover, internal resource mobilization and implementation of ADP also remain a crisis.

Dr Fahmida Khatun was speaking at an immediate virtual reaction to the proposed budget for FY24.

She said that the inflationary pressures persisted throughout FY23 and there are three messages regarding the proposed budget.

“In view of the ongoing economic crisis, the macroeconomic indicators that were announced through assumptions and estimates seem to us to be detached from reality and not possible to achieve,” she added.

Moreover, it is impossible to implement all the proposals that have been made to tame inflationary pressures and upward trends in commodity prices. The proposal to keep the inflation rate at 6% is also impossible.

“Fiscal measures to curb inflation, such as some tax concessions on consumer goods, have not been implemented. The tax-free income limit has been increased to Tk3.5 lakh, which is good,” Fahmida Khatun said.

However, to get 38 government services, one has to submit a tax return and pay a tax of Tk2000, which is an unwise decision and should be withdrawn.

There are not enough initiatives in the budget to carry out the necessary reforms.

“This budget is proposed at a time when Bangladesh is under various conditions of the IMF regarding loans. While the budget document does not clearly state the terms of the IMF, various elements of the budget hint at the fulfillment of these terms and conditions,” she added.