Economic Reporter :
Eminent economists of the country stressed the government for ensuring proper implementation of social safety net for taming inflation.
The economists said in a post budget dialogue that the government also needs to address its revenue collection shortfall by reducing the tax burden on selective taxpayers and widening the tax base.
They have given importance on taming inflation through revision of bank deposits and lending rates as fiscal or monetary policies can’t address such kind of inflation which is mostly externally driven.
Apart from these, the government should address the issues of corruption and appropriation of safety net or rationing funds as allegations of misappropriation of such funds are rampant.
The economists said this at a post-budget discussion on the proposed budget for the fiscal year 2022-23 on June 11, organized by the Brac Business and Economics Forum of Brac University. Dr Mirza Azizul Islam, Professor of Brac Business School (BBS) and former caretaker government adviser, as well as Mominul Islam, CEO of IPDC Finance, spoke at the program moderated by Shamim Ehsanul Haque, the assistant professor of BBS. The speakers referred to this year’s budget as important and said although there are many positive things in this budget, implementation will be one of the biggest challenges for the government.
“Overall, I think all the targets set in the budget are acceptable but there are problems with its implementation,” Dr Mirza said.
He also pointed out that the budget estimates a GDP growth at 7.5%, but the objective is to ensure food security and the effective disbursement of funds under the social safety net.
On the budget deficit, the economist said: “In the current context, even if the budget deficit is 6%, that’s alright.”
The economist further pointed out that the Russia-Ukraine war and various other factors have disrupted the global supply chain, including fuel, which has led to a rise in prices and an increase.
In that regard he said, it is necessary to increase social security and ensure proper management so that the people who are actually suffering can enjoy the benefits.
According to the economist, the government also needs to address its revenue collection shortfall by reducing the tax burden on selective taxpayers and widening the tax base. “Of about seven million registered taxpayers with TIN, only half contributes to the government revenue, with some registered businesses having BIN avoid paying VAT, and the budget had not addressed that,” said Azizul Islam. He also pointed out that the income inequality and regional inequality have increased in Bangladesh, “40% of the people in Rangpur and Barisal region live below the poverty line which is much less in Dhaka, Narayanganj and Chittagong. The implementation of the UN SDGs will not be possible without reducing regional disparities.”
