CPD sees ‘high ambition’ in budget to tame inflation

The Centre for Policy Dialogue (CPD) has termed the government's target to tame inflation within 6.5 percentage as 'highly ambitious' goal which marked nearly double digit in recent months.

"The proposed budget is set target to reduce inflation to 6.5 percent which was over 9 percent in May. Reality target should be taken here," CPD Executive Director Fahmida Khatun said in a post-budget briefing on Friday.

She also said that they do not notice the activities of macroeconomic stability frames in the proposed budget.

"In the last two years, an instability is going on in all economic indicators in Bangladesh. We noticed a negative signs in banking sector, revenue collection, exports, remittances, investment, and dollar crisis. Adequate steps could be taken to stabilise the economic indicators" Dr Fahmida added.

The economist also stated that the revenue collection target has been set higher to meet IMF conditions, achieving it is unrealistic.

“The real indicators do not align with the GDP, inflation, reserves, and revenue targets proposed in the budget,”

CPD does not support laundering black money with a 15 percent value added tax which specially taken for special group of people.

“The proposed budget encouraged tax evaders and discouraged honest tax payers as they have to pay with 30 percent rate. On the other hand, tax evaders will pay only 15 percent,” added Fahmida.