CPD for target-specific budgetary measures to address challenges

Centre for Policy Dialogue (CPD) today lauded some points of the proposed budget for the fiscal 2022-23, urging the government to take target-specific budgetary measures to address the "attendant challenges". 

"The budget for FY23 needed to be innovative in approach, flexible in allocative priorities and target-specific in terms of budgetary measures to address the attendant challenges," said CPD Executive Director Dr Fahmida Khatun while presenting the analysis of the national budget for the fiscal 2022-23 at a press briefing at a hotel here.

The independent think tank organised the media briefing to share its analysis on the Taka 6,78,064 crore proposed national budget for fiscal year 2022-23 beginning from July.

Finance Minister AHM Mustafa Kamal on Thursday placed the national budget for fiscal year 2022-23 (FY23) in the Jatiya Sangsad with a 7.5 percent GDP growth target considering the lagged effects of the COVID-19 and the protracted crisis arising from the Russia-Ukraine conflict. 

Referring to the budget speech, Fahmida Khatun laid emphasis on using appropriate fiscal policy to protect low and limited earners in the country. 

"CPD has earlier emphasised the need for protecting the low and limited earners in the country and focusing on inflation management and restoration of macroeconomic stability by coming out of GDP growth obsession," she said.

She recommended allowing tax concession to essential commodities at both import and domestic stages and providing tax reliefs to middle income groups to protect the low and limited earners in the country. 

She suggested allocating adequate resources for subsidies for keeping the administered prices of petroleum products, electricity, gas, and fertilizer and expanding social safety net provisions both in terms of coverage and the amount of per capita allocation. 

According to the CPD, the budget does have some welcoming measures, which include netter identification of contexts and challenges; expressing accountability by delineating the progress of past promises; continuation of fiscal measures to protect domestic industries; harmonisation of tax structure in case of export-oriented industries; and relatively less election-focused.

Among others, CPD Distinguished Fellow Prof Mustafizur Rahman, Research Director Khondaker Golam Moazzem and its Senior Research Fellow Towfiqul Islam Khan also spoke during the event.

Mustafizur Rahman laid emphasis on budgetary allocation for children to secure children's interests by ensuring the national economic plans and programmes.

"Allocation of Child Budget could play an important role in securing children's interests by ensuring that the national economic plans and programmes and budgets and their implementation are in alignment with the constitution and in line with the commitments made by the GoB for the children of the country," he added.

Khondaker Golam Moazzem laid emphasis on increasing the tax-free income limit for individuals from Taka 3,00,000 for providing some respite to the general citizens in view of the increasing prices of essentials, reports BSS.