The Centre for Policy Dialogue (CPD) Saturday said the primary goal of the FY25 national budget should be ensured macroeconomic stability.
At the same time, the think tank believes the government must take stern reform measures in the upcoming budget since the first year of the new term is the most appropriate time for taking strict measures.
CPD executive director DrFahmidaKhantun observed these while addressing a media briefing on “Recommendations for the National Budget for the Fiscal Year 2024-2025,” held at the CPD’s office in Dhanmondi Saturday.
Fahmida highlighted the recommendations across various sectors, including revenue collection, tax structure, inflation control, exchange rate, allocations for health and education, strategic changes in the energy sector and environmental protection.
“The upcoming budget must include initiatives to advance the marginalised communities. Revenue collection needs to be increased,” she said.
Fahmida said the government must take steps to reduce wastage in its expenditure, to reduce reliance on bank loans.
Focusing on the importance of proper investment, she said the government must set targets while considering the reality. “Measures must be implemented to curb the rise in prices of daily necessities. Priority should be given on increasing domestic food production,” she said.
Fahmida also recommended expanding the scope of social security needs and increasing incentives in the agriculture sector. “The focus of subsidies should center on assisting the impoverished. Wherever possible, cost-saving measures should be implemented. Emphasis should be given on implementing foreign-aided projects,” said the CPD ED.
The CPD also recommended lowering priorities to projects that have yet to see 10% implementation by March 2024. The think tank said an independent commission should be formed to check if government spending is properly executed.
Mentioning that meeting the budget deficit will also be a challenge this year, it said foreign borrowing is good for covering the budget deficit, but emphasis must be given on the implementation of conditions.
CPD indicates that non-bank borrowing has decreased and is expected to decline further.
The think tank also recommended the tax-free income threshold be kept unchanged for the next fiscal year. It also recommended reducing the existing 15% tax on the provident funds and gratuity to 10% and continuing it.
