The Citizen’s Platform for SDGs, Bangladesh on Monday said that the proposed budget for 2024–25 fiscal year would hit the disadvantaged people hard as the government deducted allocations for them amid high inflation.
Instead of bringing relief, the proposed budget would put them in a hostile situation, they said at a press conference organised at the BRAC Centre Inn in the capital.
In a keynote paper on the implications of the proposed budget for the disadvantaged citizens, Centre for Policy Dialogue senior research fellow Towfiqul Islam Khan said that budget allocations from the sectors, including social safety, agriculture, health and education, that particularly impact disadvantaged people were reduced or adjusted.
He said that they expected three aspects—stability, safeguarding and reform— from the budget for the disadvantaged but all were missing in the proposed budget.
In a presentation on budget analysis he showed that allocation from agricultural incentives was slashed by 47.1 per cent or Tk 8,000 crore compared with the budget for the outgoing fiscal. Allocation for food subsidy was also reduced by 19.84 per cent which would greatly affect the poor.
The budget allocations for education and health also reduced when inflation and operational cost were considered.
In the new income tax structure again the maximum tax-free income threshold was kept at Tk 40,383 gross monthly income, but those grossing Tk 180,000 monthly would get the highest 12.61 per cent rebate.
‘Those who are in distress have no relief in the proposed budget,’ he said.
Despite the government proposed to increase the allowances for social safety net programmes, the increase would not adjust the decreased value of the allowance in face of high inflation.
For instance, old age allowance saw a Tk 100 increase to Tk 600 from Tk 500 in the outgoing fiscal. The increased allowance actually reduced by 7 per cent to Tk 465, considering the 9 per cent inflation.
Citizen’s Platform for SDGs, Bangladesh convener and CPD distinguished fellow Debapriya Bhattacharya said that a significant amount of health and education budget was allocated for infrastructural development that would not support poor people to get healthcare for an affordable price.
South Asia regional director for WaterAid Md Khairul Islam said that out of pocket expenditure of common people would increase again as budget allocation in health sector was not increased.
He demanded to ensure supply of drugs for the poor.
The executive director of Transparency International, Bangladesh, Iftekharuzzaman said that the budget supported corruption, but hostile to small businesses.
‘This budget is against constitutional commitment and election manifesto of the government,’ he said mentioning the scope of legalising the undisclosed money.
Castigating the government for keeping the scope for legalising undisclosed money paying only 15 per cent tax, TIB chief said that on the other hand, 30 per cent income tax was imposed on legally earned money.
On Thursday, finance minister Abul Hassan Mahmood Ali proposed Tk 7,97,000 crore budget for the fy2024–25 in the parliament reintroducing the scope for legalising undisclosed money.
Hill people’s rights activist Ilira Dewan said that budgetary allocation for the Chittagong Hill Tracts districts continued to decrease. She said that in 2023–24 fiscal the government announced 0.17 per cent of total budget for hills which stood 0.13 in the revised budget.
This year, 0.08 per cent of the total budget was allocated for the CHT.
Jahangirnagar University economics professor Sormindo Nilormi, East West University economics professor AK Enamul Haque, Campaign for Popular Education deputy director Mostafizur Rahaman and Policy Exchange chairman M Masrur Reaz, among others, spoke.
