Huge budget does not match income and expenditure calculations, doubts about achieving revenue targets
Income and expenditure calculations do not match. As the days go by, life is becoming more difficult. It has become difficult for low-income people to survive. In such a situation, the government has prepared a huge budget of 7 lakh 38 thousand crore rupees. Naturally, the deficit has increased. An ambitious revenue target has been set, which is doubtful whether it can be achieved. However, analysts say that the main challenge of this budget will be to provide relief to the lower classes.
Rahima has been living in a slum since birth. She has developed a complex disease. Her performance has been damaged. It seems that she does not have a husband, her younger son has taken over the responsibility of the family. Even though expenses have increased, the income opportunities have become limitless. Regarding the budget, she said, the poor should be helped a little. And if you help the poor, if you can, then do it with your own hands. Those who have, get it, and those who do not, that is, the proletariat, get nothing. There are many poor people like me here, which is not worth mentioning.
The inflation rate is now increasing. That is, people are spending 9 percent more than the actual cost of goods and services. 40 to 50 million people in the country are under expenditure pressure. Former caretaker government advisor Dr. Hossain Zillur said that the main reason for poverty is the ongoing crisis in the economy since the Covid period. Poverty cannot be eliminated overnight. For this, two things have to be done, the economy has to be developed and new ideas have to be developed. Along with this, new sources of growth have to be created.
There is no shortage of will in the budget, but the limitation of money is a harsh reality. The situation is such that there is a desire but no means. Still, the new government is on the path of a huge budget. If you look at the expenditure breakdown, it can be seen that 67 percent of the money is being kept for operating expenses. In addition, money will be spent on ADP, loans and advances and the food sector. The bigger the budget, the greater the deficit. If everything goes well, the deficit in the proposed budget could be Tk 2.43 trillion.
Economist Dr. Mustafa K. Mujeri said, the amount being spent, is such spending really necessary in the current situation? Because it is not possible to increase revenue collection overnight.
The budget has set a target for collecting a large amount of revenue. The NBR is being relied on the most for financial support in implementing the budget. Then there is domestic debt, foreign debt and other sources. In terms of domestic revenue, there is dependence on import-export duties, value-added tax or VAT, income tax and travel tax. The budget has set a target for taking a large amount of loans from the banking sector, which could amount to Tk 1.2 trillion. Prime Minister’s Financial Advisor Dr. Rashed Al Mahmud Titumir said, Bangladesh’s tax-GDP ratio is one of the lowest not only in South Asia but also in the whole world. So we have to come out of this situation. For this, the economy needs to be accelerated and economic activities, investment, production and employment needs to be increased.
Due to various crises, the income of the people of the country has not increased much for a long time. On the other hand, inflation has increased. The government has repeatedly said that the next budget will be inclusive and for the common people. Although the protection assistance program for the poor is getting bigger, the right policies need to be adopted.
