Country’s leading economists and experts termed the proposed budget a development-oriented one, saying strict measures are needed to o curb inflation.
Some of them expressed optimism about attaining the target of revenue earning while others recommended bringing basic reforms in revenue management, collection process and inspiring voluntary basis tax payment process.
When contacted former governor of Bangladesh Bank Dr. Salehuddin Ahmed told Bangladesh Post that the size of the budget is okay but it will not be possible to achieve the GDP growth target 6.75.
“Yet, if the government can achieve the GDP growth target 6, it is not bad. And it would not be possible to achieve the revenue target,” he added.
Salehuddin Ahmed said the government should increase production and supply.
“I think the creation of jobs is very important. If people are
employed, they will have purchasing capacity. Therefore, Income generation is vital for creating source of income for people,” he mentioned.
“Apart from these, bank borrowing target Tk 1,37,000 crore will create a further impact on private sector credit growth. Already the credit growth is too poor. So, bank borrowing will create further barriers to private sector credit growth.”
Noted Economist, Chairman of Policy Research Institute (PRI), Dr. Zaidi Sattar also termed the budget a development-oriented one. There are some indications in meeting the macro economic challenges, he added.
“NBR has taken some steps to strengthen their capacity in many ways side by side automation will also help them to increase earning. One crore taxpayers have been registered while 41 lakh return submission is praiseworthy. And this will work in attaining revenue earning target", said Dr, Sattar.
According to international standard, if the GDP growth remains steady and tax remains vibrant then usually Tax-GDP ratio increases.
“I think basic reforms are needed in NBR. In this regard total digitisation is more important here. Coordination between taxpayers and tax collectors is very important. The Coordination will inspire taxpayers to pay tax voluntarily,” he added.
The former World Bank high official Dr. Sattar believes that the budget will bring good for people if the measures, announced in the budget, are implemented properly.
He said there have regulatory duty on 3500 products, the government could offer a waiver upon at least 1000 products that could contribute to relaxing inflation.
Executive Director of Center for Policy Dialogue (CPD), Dr. Fahmida Khatun told Bangladesh Post that the target of bringing down the inflation at 6.5 percent is not possible at all.
“A magic bullet is needed to reduce the rate of inflation within a short period of time because the measures suggested in the budget is insufficient”, she added.
