The proposed budget for FY 22 will not be able to play its due role in offsetting the economic hardship stemming from the coronavirus pandemic, the Centre for Policy Dialogue (CPD) said in its budget review.
This is not the fiscal budget to tackle the crisis stemming from the coronavirus pandemic and it will not help recover the economy, the independent think-tank said at a virtual press briefing on Thursday.
The budget would have given a clear indication of how the health, education and other social sectors will recover from the crisis in the next 3-4 years from the existing hardship, said Fahmida Khatun, executive director of the CPD.
The proposed budget has been prepared based on poor projections and there have been limitations in implementing the targets.
The government has kept aside Tk 10,000 crore to implement the vaccination programme in tackling the pandemic, but the volume is not adequate, Khatun said, adding that there is no change in the allocation for the health sector.
For the outgoing fiscal year, the allocation is 0.83 of the gross domestic product (GDP), which may remain the same for the next one, she added.
CPD further mentioned that the government has also included the pension fund for the retired government employees and the interest of the savings certificates to the SSNPs to inflate the allocation artificially.