The Centre for Policy Dialogue (CPD) said the proposed budget for the fiscal year 2020-21 has been a conventional one as it has not taken into account the Covid-19 reality. Amid health risks caused by the ongoing pandemic, it will not be an easy job for the government to bring the economy back on track.
The private think tank made the observations at a virtual press conference on Friday following the announcement of the proposed budget for FY2020-21 at parliament on Thursday.
CPD Executive Director Dr Fahmida Khatun said there has been a multi-dimensional crisis in the context of Covid-19.
“We are at great health risks. To address the challenges posed by the ongoing Covid-19 pandemic, the government should have increased its budget allocations for health, social security, agriculture and food security,” she said.
“But the government thinks Covid-19 will end this year… There was a need to be creative in budgeting. But it did not happen.”
Dr Fahmida said the investment growth in the budget has been projected at 25.3 percent, but thoughts of the deadly Covid-19 were not reflected here.
“The government is fascinated by GDP growth. Now, instead of thinking about GDP growth, we should focus on how to reduce poverty and inequality,” observed the CPD executive director.
Regarding the scope for wholesale whitening of black money, Dr Fahmida said this opportunity is a slap in the face of honest taxpayers who have been paying taxes over the years.
“Those who have been evading taxes year after year are now able to invest the money with only 10 percent tax,” she said, adding that there had been an opportunity to whiten the black money almost every year since independence resulting in no benefit.
CPD Honorary Fellow Mustafizur Rahman said concerns remain about implementation of the proposed budget.
The government is relying on bank loans to address the huge budget deficit, but this will hamper investment in the private sector, said Mustafizur.
If there is no investment in the private sector, he said, there will be no employment because the private sector is the main source of employment.
Addressing the health risks in the Covid-19 situation is a big challenge for the government, said the CPD Honorary Fellow, adding that health risks would increase the economic risks.
“So we need to take quick steps to eliminate the risks,” he opined.
The government should focus on creating more jobs and ensuring social security, added Mustafizur.
Speaking on the occasion, CPD Research Director Khondaker Golam Moazzem said the government has not taken innovative steps to deal with challenges posed by the ongoing pandemic.
Large-scale unrealistic frames have been thought of in terms of income, expenditure and investment, he said.
But the government will have to face a big challenge in the implementation of the budget, he observed.
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