Debapriya Bhattacharya, a distinguished fellow of the Centre for Policy Dialogue (CPD), criticized the interim government for inconsiderately increasing value-added tax (VAT) on certain products and services while raising indirect taxes instead of direct taxes.
He mentioned that the country's growth rate is steadily declining, as shown by data from the first quarter of the current fiscal year. He also criticized the government for failing to present a clear economic manifesto to address the ongoing crisis.
He was speaking at a symposium titled: “White Paper and Beyond: Economic Management, Reforms, National Budget,” organized by the White Paper Preparation Committee 2024 with the support of the Citizen Platform for SDGs in the capital on Saturday.
Commerce Adviser Sheikh Bashiruddin said it is possible to increase the purview of the products of the state-owned Trading Corporation of Bangladesh (TCB) by adjusting the prices of the TCB-provided essentials.
However, the adviser stated that if TCB product prices increase due to the changes, there will be significant criticism, and these thoughts must be faced with courage.
Debapriya Bhattacharya further warned that the country's energy situation is likely to worsen. The structure of government spending, including revenue and subsidy expenditures, remains unclear. Similarly, the allocation of funds to education and healthcare and the beneficiaries of these expenditures remain uncertain.
Regarding the purpose of drafting the white paper, he said that many people ask what happens after it is published, but due to uncertainty, they could not provide a clear answer.
He called on the government to emphasize the analyses in the white paper, particularly regarding the upcoming medium-term plans and the next budget. The aim is to ensure the white paper's recommendations are integrated into policymaking.
He also pointed out that despite conducting financial assessments to manage government expenditures, no mechanism is in place for effective monitoring. He highlighted the absence of policies concerning the ongoing project cuts.
“We need clarity on how the government plans to address issues such as LDC graduation and provide mid-term support to those lagging behind,” he said.
Commerce Adviser Sheikh Bashiruddin said: "We have not adjusted the prices of TCB products in a long time. Making such adjustments can be politically sensitive, and we are not politicians.
“However, how long can we continue to buy oil at Tk 175-Tk 180 and sell it at Tk 100? Should we consider expanding the number of TCB product recipients from the current one crore to 1.5 or 2 crores by raising the price to Tk 125-Tk 130?"
He also said that they have to think about these things with courage, but if they do not, they will also remain in the same circle.
“TCB products are supplied to one crore marginalized people. When we digitized it, we saw about 3.7 million fake card holders here,” he added.
He also said that only some large organizations can participate in TCB tenders. Moreover, TCB's size, payment policy, and financial infrastructure are running on commercial loans, which is not sustainable.
“We are trying to reduce the ticket size and to include small businesses with TCB so that the quality of the products remains good,” he added.
He also said that the mass uprising has taken place in the country because of inequality in society, which must be eliminated through policy changes.
Apex Footwear Managing Director (MD) Syed Nasim Manzur said that the country's economy is in a delicate situation, and if this situation continues, investment will go to other countries.
“We need to discuss how to overcome this situation, increase productivity, and reduce electricity and gas prices. We want to give a big push, as we are feeling economic discomfort and a lack of security. Our consumer confidence is very low, and there is a negative attitude of local and global investors,” he added.
BIDA Executive Chairman Ashik Chowdhury said that they hope the government will formulate the budget by prioritizing other potential sectors instead of any one sector.
Regarding the mega project cuts, he said that they don’t want gossip about fake projects; instead, they want full-fledged and active fewer projects.
“There will not be 100 economic zones; we have officially reduced it to five with adequate supplies of gas, electricity, water, and other logistic support,” he added.
Umama Fatema, spokesperson of the Students Against Discrimination Movement, said that fake development stories have been told for the last 15 years. Still, the accurate picture does not match the government’s statistics.
“We need to know what agreements Bangladesh has made with India; we have been exploited; we were made into a state of India. The government has not yet given importance to these issues,” she added.
She also said that bureaucrats have been given benefits in various ways but have destroyed the structure; they should have been punished.
She added: "The current government should recover the money from those who laundered it and spend it on the health and education sectors."