Members of Parliament (MPs) are urging the government to prioritise inflation control in response to the rising cost of living. A series of proposals have been put forth to address the multifaceted economic challenges and enhance the country's financial stability.
Today, the national budget for fiscal year 2024-25 is set to be approved in parliament following the passage of the finance bill on Saturday. On June 12, the MPs conducted a comprehensive discussion of the proposed budget during the third session of the 12th National Parliament.
In the discussion, they recommended several proposals, including prioritising inflation control, automating VAT collection, expanding the tax net, enhancing the board of investment, improving strategies to attract foreign direct investment (FDI), bolstering the network of the Trading Corporation of Bangladesh (TCB), and improving economic diplomacy, according to sources concerned with the matter.
The budget's slogan, "Smart Bangladesh's Dream in the Sustainable Development Plan," emphasises the four basic principles: smart citizens, a smart economy, a smart government, and a smart society as the MPs stressed the need for robust measures to curb inflationary pressures to ensure economic stability.
Bagerhat-4 constituency MP HM Bodiujjaman said, "If we can implement the four basic principles of this proposed budget, our per capita GDP will increase to $12,000, which is currently almost $3,000. The budget for 44 ministries has been increased, while the budget for 17 ministries has been decreased, contributing to the vision of building a Smart Bangladesh."
Dhaka-17 constituency MP Mohammad Ali Arafat said, "The proposed budget gives high priority to controlling inflation. This budget has the potential to tame inflation within the next year. In FY09, our debt-to-GDP ratio was 34 per cent, which is now 36 per cent. That means that we are in a good position as it has remained quite unchanged."
To stimulate economic growth, the MPs recommend strengthening the board of investment by attracting foreign direct investment (FDI) through improved strategies and creating a more investor-friendly environment.
Additionally, they have suggested enhancing trade remittances through foreign ambassadors to bolster foreign exchange reserves.
The proposals also call for more precise guidelines on the investment of whitened undisclosed money, particularly directing it towards the capital market to foster growth and stability.
To ensure fair market practices, the members of parliament stress the importance of controlling syndicates and extortion practices while improving market monitoring mechanisms. This is crucial in preventing market manipulation and protecting consumers from inflated prices.
A coordinated approach between fiscal and monetary policies and market-based interest rates is advocated to create a harmonious economic environment. The parliamentarians propose reducing VAT on export-oriented industries to enhance their global competitiveness.
The MPs also call for reconsidering the 15 per cent VAT on domestic fruit juice production, suggesting it remains at 5 per cent to support local producers.
Additionally, improving economic diplomacy is seen as vital for fostering international trade relations and attracting foreign investment. The MPs also urge a focus on easing the cost of doing business, with an emphasis on reducing bureaucratic hurdles and enhancing the overall business climate.
The introduction of safeguard duties to protect domestic industries from unfair competition and the promotion of the 'Made in Bangladesh' brand are proposed vehemently.
An expansion of the TCB network is recommended to ensure broader access to essential commodities at controlled prices, thereby alleviating the burden on consumers during inflationary periods.
