Photo: Messenger
“For 20 years, I've been pulling a rickshaw in Dhaka city, yet my income has never been enough to afford one of my own. A staggering 70 per cent of my daily earnings goes toward household expenses, while the remaining 30 per cent is spent on rent. When I fall ill, I cannot seek medical care due to the lack of funds. Does the budget offer any relief for people like me? It seems the benefits are solely reaped by the wealthy. Each year, I witness a budget that creates more opportunities for the rich, while we, the poor, are left to bear the burden.” Alim Uddin, a rickshaw puller from the capital's Motijheel area, lamented his situation on Tuesday.
Students are feeling the pinch as well. Akbar Hossain, a college student living in a mess in the capital's Jatrabari area, exemplifies this. “Last year, my mess rent was Tk 2,500, but now it's Tk 3,200 taka – a Tk 700 increase in just one year!” he exclaims. “The same goes for meals. A year ago, they cost around Tk 30, but now they're between Tk 45 and 60– practically doubled!” Akbar's father works in a private company, and his salary hasn't increased in 3 to 4 years. This makes it increasingly difficult for him to manage household expenses and his children's education costs.
Upon investigation, it is found that while the income of common people has not increased much, the costs of everything have risen. House rent, transportation, medical expenses – everything has seen a double-digit increase. Every year, when the budget comes, the poor people bear the burden. Rice, lentils, flour, edible oil, salt, sugar, fish, meat, and all types of food items are being sold at higher prices. The costs of non-food items like medical care, transportation, and education have also not decreased. For the last 52 years, the size and shape of the country's budget have increased every year. But the nature remains the same. Every year, the budget becomes bigger than the previous year, the tax burden increases, the wealth of the rich increases, the opportunity to whiten black money increases, the allocation for administration increases, and finally, all these impacts fall on the lower classes.
Economists are saying that employment is not increasing in proportion to the increase in wealth. Instead of realizing the amount from defaulters, they are being given more facilities. While farmers do not get electricity, various facilities are being provided to the rich. As a result, illegal capital is being accumulated in the hands of the beneficiaries. According to an IMF report in 2022, income inequality has increased dramatically in three South Asian countries--Bangladesh, India, and Sri Lanka--over the last two and a half decades.
Fazlul Haque is a teacher in the economics department of a private college. He told The Daily Messenger, “The rich can take huge loans. But the loan repayment rate is lower among them. Banks cannot put much pressure on them. They are given even bigger loans before repaying their previous loans. On the other hand, small entrepreneurs have to face a lot of hassles to get loans.”
He also added, “There is also inconsistency in the country's tax system. Those who should pay more taxes pay less, while those who should pay less pay more. For example, when a poor person buys necessary household items or pay mobile bill, they also have to pay tax. Research by the Bangladesh Economics Association shows that 87 per cent of the rich and upper-middle class do not pay any kind of income tax. This is why NBR fails to achieve its revenue collection target.”
Even amidst various pressures, this time the revenue collection target has been set at Tk 5 lakh 41 thousand crore in the proposed budget. Out of this, Tk 4 lakh 80 thousand crore needs to be collected as taxes, which is Tk 50 thousand crore more than the current fiscal year. The revenue collection target was not met in the current fiscal year, so revenue mobilization will be a big challenge in the upcoming budget.
The 2024-25 fiscal year's budget will be the first budget of the Finance Minister Abul Hassan Mahmood Ali. Its size is estimated to be Tk 7 lakh 96 thousand 900 crore. The budget will increase by Tk 35 thousand 115 crore, or 4.60 percent, compared to the current budget. The deficit will also increase, with the deficit including grants amounting to Tk 2 lakh 55 thousand 900 crore. The size of the Annual Development Programme (ADP) is estimated to be Tk 2 lakh 65 thousand crore. The government will borrow to finance the budget deficit. Initially, a loan target of around Tk 3 lakh crore has been set. More than Tk 1 lakh 50 thousand crore will be taken from banks, and foreign loans amounting to over Tk 1.25 lakh crore (USD 1,170 million) will be received. In return for the loans, interest payments of Tk 1 lakh 16 thousand crore will have to be made.
Meanwhile, the pressure of inflation on citizens' daily lives has become evident even before the budget presentation. On Tuesday morning, Halima Khatun went to the market in Dhaka's Malibagh. She said, “A year ago, groceries worth Tk 1,000 would last for 3 to 4 days. Now, pangash and tilapia fish are not available for less than Tk 200 to 250. The fish that the children prefer costs over Tk 300 to 500. The potatoes that I bought for Tk 20 last year now cost Tk 55-60 at the end of the year.” She and her husband are both employed, but their combined income is not enough to run the household. Expressing frustration, she said that despite the announcement of a large budget, the terrible pressure of inflation is falling on people's daily lives.
Abu Ahmed, former chairman of the economics department at the University of Dhaka, told the Daily Messenger, “The pressure of inflation on people's lives is increasing. These factors particularly impact the poor. Moreover, if taxes increase on essential commodities, the poor and middle class have to face the brunt as their income does not match their expenses. Inflation is already having an impact. If the government further increases taxes on food production and transportation in this budget, there is a possibility of great harm for the poor. We have to wait a bit until the budget is presented.”
“The country is plunged into the crisis of a great economic downturn, and the government is trying to take more loans. If it does not get loans, it will have to face many challenges. Then, due to inflation, not only the poor but everyone will be affected,” he added.
Messenger/Disha
