Photo: Collected
The interim government has "inconsiderately" increased value added tax (VAT) on certain products and services while raising indirect taxes instead of direct taxes, said economist Dr Debapriya Bhattacharya, who led the committee responsible for drafting a white paper on the country's economic situation. Speaking at an event in Dhaka today, he remarked that the country's growth rate is gradually slowing down as data from the first quarter of the current fiscal year reflects this trend.
He made these remarks during the inaugural session of a symposium, titled "White Paper and Beyond: Economic Management, Reforms, and the National Budget."
The symposium was organised by the White Paper Drafting Committee 2024 and implemented with the support of the Citizen Platform for SDGs at the China-Bangladesh Friendship Conference Centre in Sher-e-Bangla Nagar, Dhaka.
Debapriya further warned that the energy situation in the country is likely to worsen. The structure of government spending, including revenue and subsidy expenditures, remains unclear. Similarly, it is uncertain how much will be allocated to education and healthcare or who will benefit from these expenditures.
The Aman paddy collection campaign has achieved little success. Corruption remains unchanged, and farmers are still not receiving fair prices, he added.
"Maintaining food reserves in government warehouses is crucial for controlling inflation, but the reserves are not increasing," said Debapriya.
Addressing the purpose of drafting the white paper, he stated that many people ask what happens after the white paper is published. "When we, the drafters, face this question, we feel a sense of helplessness because there is uncertainty.
"In such a situation, it seems important to highlight the analyses presented in the white paper, focusing on the upcoming medium-term plans and the next budget."
"Our goal is to ensure that the recommendations of the white paper are incorporated into policymaking," Debapriya added.
He further noted that while financial assessments are being conducted for managing government expenditures, there is no mechanism for effective monitoring. Initiatives have been taken in the banking and energy sectors, but these are ad hoc and uncoordinated.
"No new development vision has been articulated. This government lacks a clear development agenda. The pathways for achieving SDG implementation, graduation from LDC status, and reducing inequality remain undefined," said the eminent economist.
Debapriya also pointed out the lack of policies regarding the ongoing project cuts.
The white paper committee, which drafted the document on the country's current economic situation, consisted of 11 experts. On 1 December last year, the committee submitted its report to the chief adviser of the interim government.
The report highlighted the previous government's economic mismanagement, chaos, corruption, and plundering.
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