Bangladesh will face significant economic crisis after this budget: GM Quader

Bangladesh will face a significant economic crisis after the newly proposed budget for the FY2024-25 and it cannot be called people-friendly, Jatiya Party Chairman GM Quader said on Thursday (6 June).

"Due to indirect taxes, the tax burden on people will increase, leaving no escape for the public. The lack of a conducive environment will not attract foreign investment, and thus job opportunities will not be created. Bangladesh will face a significant economic crisis after this budget," he said following the announcement of the budget.

He described the budget as conventional, and said, "The budget mirrors previous years with nothing exceptional. The country is grappling with an economic crisis, marked by rising inflation and daily increases in the price of essentials. Unemployment remains a critical issue. Our foreign exchange earnings are insufficient compared to our expenditures, and reserves are depleting daily, devaluing our currency. No steps or initiatives to address these issues are evident in this budget."

He also pointed out that 62% of the revenue comes from direct taxes, with the remainder from indirect taxes, increasing the tax burden on mass people. "There is no prospect of reducing inflation. Income tax is only 36%, import duty 10.3%, VAT 38.1%, and supplementary duty 13.8%. Even rickshaw pullers and beggars have to pay these. We do not see any initiatives to protect the poor," he stated.

He said that the losses faced by the public are being portrayed as gains. "Not everyone has access to electricity and gas. The government has emphasized gas imports but has not taken initiatives to produce it, leading to a huge financial loss. Our energy security is under severe threat," he added

He also criticized the government's claim of achieving 30,000 megawatts of electricity production capacity, saying, "In reality, only 13 to 15,000 megawatts can be utilised. Load shedding occurs when 15 to 16,000 megawatts are needed. Despite not producing the additional 15,000 megawatts, capacity charges are being imposed."