The Center for Policy Dialogue (CPD) has sounded alarm over a staggering revenue deficit of Tk 820 billion in the budget during fiscal 2023-2024.
Fahmida Khatun, the executive director of CPD, made this alarming projection taking part in a discussion on budget 2024-25 at the organizations head office in Dhanmondi on Saturday.
Khatun highlighted the dire economic landscape, attributing the potential deficit to a myriad of factors plaguing the nations financial stability.
These factors include high inflation, liquidity crunch in banks, sluggish budget implementation, dwindling foreign reserves and poor export earnings and remittances.
The overall macroeconomic indicators, which ideally should exhibit high growth coupled with low inflation are under immense strain, she said citing both domestic and international challenges.
As per CPDs analysis, the economy is grappling with sluggish revenue collection, inflationary pressures and a dollar crisis, collectively undermining the macroeconomic stability.
It has underscored the urgent need for prioritizing measures to restore stability in the economy, particularly by alleviating inflationary pressures and stabilizing the exchange rate while safeguarding the interests of vulnerable segments of society.
The think tank recommended that NBR takes effective measures to bolster efforts against money laundering, curb dishonest legalization of undisclosed income and streamlining taxation procedures to alleviate the burden on taxpayers.
Additionally, more proposals include reducing value-added tax (VAT) on essential goods like medicines and easing duties and taxes on private universities, English medium schools, and imported books.
Khatun urged transparency in public expenditure and cautioned against exacerbating inflationary pressures in budgetary allocations. She also called for measures to mitigate rising product prices and increased investment in education and healthcare to address pressing social needs.
As the nation braces for economic headwinds, CPDs recommendations underscore the imperative need for prudent fiscal management and targeted interventions to navigate the challenges ahead.
