The proposed national budget for 2025-2026 has focused on macroeconomic stability rather than growth, said country's economists and economic analysts while giving instant reactions on the budget placed on Monday.
Some economists have expressed concern that the measures to hike VAT on the prices of some products will certainly create more financial pressure on general people.
Chairman of Policy Research Institute Zaidi Sattar told the Bangladesh Post that the proposed budget have to address two major policy challenges: to tame inflation and prepare the economy for LDC graduation in November 2026.
The budget outlay, revenue target, fiscal deficit and it's financing plan are all in line, thanks to the enhanced focus on macroeconomic stability rather than growth, he said.
"But this budget falls short of making robust preparation for coping with the steep competition that our firms will be facing in global markets, once we graduate from LDC status," said Zaidi Sattar.
Research Director of Center for Policy Dialogue (CPD) Dr. Khondoker Golam Moazzem said unfortunately, we see the budget as traditional one like the previous years.
Some of the recommendations like reforming tax structure, environment sector, transportation, renewable energy are good initiatives, said Dr. Moazzem adding that measures in employment generation, entrepreneurship development, creating revolving fund in this regard are also good.
Dr. Moazzem, expressing in surprise, said that this government also has kept the opportunity of whitening black money which is not befitting with the ideology of this government.
Economic analyst Md. Mazadul Haque told the Bangladesh Post that the measures have been taken to hike VAT on prices of different products, will certainly turn the living standard of common people harder, the government should take move to increase revenue through direct tax instead of indirect taxes.
"The government have to ensure equitable distribution of funds of social safety programs to improve living standard of people. The people, who are really poor, have to be brought under social safety program. The budget should have reflection in this regard," Mazed added.
He said the budget should be people-friendly. But whenever the government takes measure to increase revenue by hiking VAT, it always cause miseries for low and fixed income group people.
