Budget lacks directions, says SANEM

Rafikul Islam

The proposed budget for 2021-22 fiscal year lacks proper directives for the entire education sector, employment generation and the new poor affected by the Covid-19 pandemic, said the South Asian Network on Economic Modeling.

The research organization on Saturday made the remark in its reaction to the proposed budget for FY22 at a virtual press conference titled “Sanem’s Budget Reaction”.

“We notice a number of lapses in the proposed budget for FY22. There is no reflection for the education sector, employment generation, new poor issues,” Executive Director of SANEM,  Professor Selim Raihan said.

Although the title of the proposed budget is attractive, it is disconnected from the lives and livelihood perspective, he added.

“There is no proper assessment to address the pandemic. We notice an incomplete direction towards economic recovery issues posed by the pandemic. The budget offered tax exemption in different business sectors,” the economist also said.

The poverty rate has greatly increased in the country due to the impact of Covid-19 in the country’s labour market, he said, adding that there is no proper road map in the proposed budget addressing the issue.

Research Director of SANEM and Professor of Economics Department at Dhaka University Dr Sayema Haque Bidisha said, “We notice some positive sides in the proposed budget, such as increasing the allocation in the social safety net, health, agriculture sector.”

“Though the proposed budget is business-friendly, there is no recovery plan. Also, there is no clear direction for low-income people, unemployed youths, small businesses on how to get benefits from the budget. We worry that there is no road map for employment situation and job creation amid the Covid-19,” she added.

The economist also remarked that there is no measure to stop corruption and reform is much needed in the tax system and banking sector.

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