In the proposed budget, the government has announced plans to reduce inflation and bring relief to the commodity market. But the real picture is different as the burden of the inflation is on the shoulders of the consumers.
Meanwhile, even if the prices of many products are reduced through tariff benefits, the benefits will go to the pockets of the traders. Consumers will be deprived. That is what most leading economists say.
Economists said transparency, efficiency and accountability must be ensured in budget implementation. However, the Board of Revenue said that the general public will be relieved by the duty exemption on daily commodities and agricultural inputs.
At present, the inflation rate in the country is 6.29 percent. This means that the product that can be purchased at Tk 100 now, an additional costs of Tk 6.29 will be added to to buy the same product. This time in the budget, the inflation rate has been kept at 5.6 percent. In other words, consumers have to pay Tk 105.6 for a commodity that used to be Tk 100.
Former Governor of Bangladesh Bank Saleh Uddin Ahmed sees a challenge in achieving this goal. He said, "There is no initiative in the budget to create employment. There is no plan in the budget on how to reduce income inequality."
He pointed out that market management should be more proactive in controlling inflation. Ahmed also expressed concern over the implementation of the initiative to recover the money that have been smuggled out.
Although economists are skeptical about achieving the revenue target set in the budget, NBR Commissioner Mohammad Enamul Haque said it would be easier to achieve the target if taxpayers are willing to pay their due taxes.
Consumers said prices of general commodities have not dropped in any circumstances. It's the same as before. In fact, prices of some products have gone up.
The budget also announces to give relief to the consumers by directly reducing the prices of many products. Economists are skeptical about whether this will have an impact on the commodity market.
Economist Taufiqul Islam Khan said, "People will be able to get benefit if the prices of daily commodities come down. We thought there would be a plan to reduce inflation. But no such practical steps were noticed in the budget. We are not sure in such a situation prices of how many commodities will come down."
