‘Budget didn’t reflect proper assessment of pandemic impact’

Abdur Razzak Sohel

The proposed budget did not reflect proper assessment of the economic and social impacts caused by the Covid-19 pandemic, said Selim Raihan, Executive Director of South Asian Network on Economic Modeling.

“A lack of proper assessment of [the pandemic’s] impact on economy, job markets and poverty create obstacles in adopting remedial measures,” the economist told The Business Post.

Finance Minister Mustafa Kamal unveiled a proposed budget of Tk 6,03,681 crore in parliament on Thursday.

Raihan said the finance minister correctly identified priority areas such as health, agriculture and stimulus packages but the proposed budget failed to properly address issues, especially those caused by the pandemic.

Allocation alone is hardly effective in addressing the issues without proper assessment and steps, Raihan said.

On the other hand, the proposed budget paid no attention to the challenges of attracting investment, he said.

“Although incentives for local industries is a good move, it lacks reforms initiative, a necessary step for attracting investment,” he noted.

The private sector has to play a major role in reaching the growth target since an estimated 80 per cent investment comes from there, said Raihan.

“It will be challenging to meet the growth target if private investors face problems in making new investments and fail to play their due roles,” he said.