Dr Hossain Zillur Rahman, Executive Chairman, Power and Participation Research Centre (PPRC) expressing dismay said Bangladesh has been stuck in an "iron triangle" trap: lack of accountability, strategic deficiencies and institutional corruption.
Bangladesh is also caught in a trap of unskilled labor and uncoordinated investments in infrastructure and services, leading to project delays.
He said this while speaking as guest of honor at a budget dialogue organized by Centre for Policy Dialogue titled "CPD Budget Dialogue: An Analysis of the National Budget for FY25" held at a city hotel on Wednesday.
The think tank executive director Fahmida Khatun delivered key note speech while among others
Barrister Anisul Islam Mahmud, Deputy Leader of the Opposition, Bangladesh Parliament, MA Mannan, Chairman, Parliamentary Standing Committee on Ministry of Planning, Kazi Nabil Ahmed, Chairman, Parliamentary Standing Committee on Ministry of Posts and Telecommunications and IT were present as special guests, Rasheda K Chowdhury, Executive Director, Campaign for Popular Education as guests of honor, Razequzzaman Ratan, President, Socialist Labor Front as distinguished discussant and Dewan Hanif Mahmud, editor, Bonik Barta as distinguished panelist were present in the dialogue.
Syed Manzur Elahi, treasurer, CPD Board of Trustee and former caretaker government advisor chaired the sessions.
Fahmida Khatun in her key note speech criticized that the proposed FY25 budget is failing to provide concrete measures to address ongoing economic concerns.
The measures proposed for curbing inflation and providing relief to the poor and those with fixed incomes are deemed inadequate.
Furthermore, the projected economic indicators for FY25, including the inflation rate, GDP growth, and investment, are considered overambitious and do not reflect current realities. As a result, many of the budgetary targets for FY25 are likely to be missed.
Additionally, the budgetary measures proposed are seen as insufficient and weak due to the failure to acknowledge the nature of the ongoing economic challenges.
This inability to recognize the current economic situation further undermines the effectiveness of the proposed measures.
Overall, the FY25 budget is described as an ordinary budget introduced during an extraordinary time, highlighting its inadequacy in addressing the pressing economic issues.
Rasheda K. Chowdhury criticized the lack of budget decentralization and the unmet expectations in the budget. She called for increased allocations for primary and secondary education.
In open floor discussion former NBR Chairman Kazi Abdul Mazid questioned the swift approval of supplementary budgets and called for thorough consultations on the proposed budget. Abdul Razzaqye from HDR CIVIK advocated for proactive measures and allocations to channel remittances legally.
Barrister Rumin Farhana criticized the institutionalization of black money whitening and the ineffective crawling peg against money laundering. She stressed the need for ground-level budget discussions beyond theoretical approaches.
Shams Mahmud, BGMEA director, noted the absence of policies for business expansion and the lack of increased private sector credit reflection. He pointed out discriminatory taxation and new tax impositions in economic zones despite previously declared facilities.
Kazi Nabil Ahmed emphasized the governments focus on education and skill development, highlighting 0.6 million freelancers supporting the economy.
He noted the governments efforts to base the economy on technology and the importance of continuing support for economic growth. He mentioned the prioritization of social sectors in the latest budget.
MA Mannan discussed the controlled inflation and the challenges of project implementation. He mentioned high project costs due to land acquisition and compared it to neighboring countries with lower project costs due to government-owned land.
Barrister Aminul Islam highlighted various economic problems, emphasizing the need for financial discipline. He criticized the practice of black money whitening and the need for a flexible market-driven exchange rate.
He pointed out that the major cause of inflation is syndication and called for measures to curb it.
Manzur Elahi concluded by stating that good governance is the key solution to identifying and addressing economic leakages.
