AL manifesto: Budget passes over some key promises
In its first proposed budget after assuming power for a fourth consecutive term, the Awami League government skirted round some of the promises the party made in its election manifesto for the January 7 parliamentary polls.
The proposed budget for 2024-25 fiscal year outlined a vision for marching towards a smart and prosperous Bangladesh by 2041.
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To achieve the goal, it listed 14 key areas, which closely align with the party's manifesto.
Keeping the prices of essentials within people's reach was stated as a top priority in the manifesto, but it did not make it to the finance minister's list of priorities.
When the AL unveiled its manifesto in December last year, it had vowed to cut inflation and ensure a smooth supply chain to bring down commodity prices.
The food inflation, which was 9.58 percent at that time, went up to 10.76 percent last month, a seven-month high.
However, the finance minister in his budget speech yesterday expressed optimism that the inflation will come down to 6.5 percent in the next fiscal year.
Although the AL had pledged a new pay structure based on commodity prices, the finance minister did not say anything about it.
According to the proposed budget, the government will increase its dependence on borrowing from domestic banks (Tk 1,37,500 crore). This will potentially lead to a further rise in inflation.
The AL's election manifesto had listed youth employment as the second most important focus. However, increased bank borrowing by the public sector and higher interest rates may lead to slowing credit flows to the private sector, posing challenges to industrialisation.
It remains to be seen whether this approach towards industrialisation will be consistent with the ruling party's objective of creating 1.5 crore jobs in five years.
The finance minister hoped that the information technology sector will generate at least 10 lakh jobs and the country will receive $1 billion in foreign investment over the next five years.
The AL had promised to set up new industries to create more jobs. But the budget proposes to allocate Tk 2,510 crore for the industries ministry, which is Tk 514 crore less than the amount allocated in the current fiscal year.
The ruling party in its manifesto had also vowed to enforce laws to recover defaulted loans. But in reality, defaulted loans have been rising gradually, putting banks under liquidity strains.
At the end of December last year, the total defaulted loan in the banking sector stood at Tk1.45 lakh crore. The figure went up to Tk 1.82 lakh crore till March this year, the highest in the country's history.
The proposed budget states a "zero tolerance" policy against corruption, which is consistent with the AL's election manifesto. The ruling party pledged to take strict measures against accumulation of illegal wealth.
The proposed budget also seeks to reintroduce the opportunity for people to legalise undisclosed income or "black money" by paying a 15 percent tax. This proposal goes against the commitment made by the ruling party previously.
'BUDGET REALISTIC'
AL General Secretary Obaidul Quader has said the proposed budget is realistic and pro-people.
"A pro-people budget has been proposed at a time when there is global crisis. This budget has been prepared taking into consideration the promises and priority sectors outlined in the party's election manifesto. A special focus will be put on controlling commodity prices," he told journalists at the Jatiya Sangsad Bhaban yesterday.
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