CPD bats for budget prioritizing 4 sectors to prop up economy

The Centre for Policy Dialogue (CPD) has recommended prioritizing healthcare, agribusiness, social security and employment in the budget for the upcoming 2020-21 fiscal year to prop up the economy devastated by coronavirus pandemic.

It has also advised the government to cut unnecessary expenditure that will be invested in other major sectors.

The proposal was made at a virtual media briefing titled 'Covid-19-Current Context and Budget 2020-21' on Saturday.

Executive Director of CPD Fahmida Khatun said that in the current context, in order to keep the wheel of the economy running, it is necessary to increase the expenditure in the productive sector at any cost at one hand while on the other, unproductive sector spending needs to be either reduced or stopped.

For this, in the forthcoming budget, most attention should be paid to healthcare, agriculture, social security and employment. The Covid-19 has hit the world economy hard. It will take at least 3-5 years to overcome. In this case, time cannot be wasted. Considering the coronavirus impact, the plan has to be adopted and implemented by adjusting the revenue and expenditure in the forthcoming budget.

Fahmida Khatun said the budget should reduce spending on unproductive sectors and increase spending on productive sectors like agriculture and industry so that employment is created. At the same time, the limit of tax-free income should be increased at the individual level. In addition to increasing the scope of the tax net, tax evasion must be prevented. “About Tk 5 lakh crore is being smuggled out of the country every year, “she said, adding that steps should be taken to stop it.

In addition, the government will have to watch out the expenditure from the incentive package announced by the government so that the banks can do it smoothly. He said that it is necessary to ensure that the real victims get the benefits.