Revenue collection, expenditure targets won’t be achieved: CPD

The Centre for Policy Dialogue (CPD) today said neither the revenue collection target nor the expenditure goal will be achieved in the next fiscal year as both the goals are much higher than the current fiscal year.

The higher revenue generation as well as the expenditure targets still confined to the same old structures, thoughts and the status quo, said the local think-tank in its immediate budget reaction.

The budget lacks special measures which could boost revenue collection, increase expenditure, bring reforms to narrow the deficit and to keep the situation stable ahead of elections.

The budget has maintained all the positive and negative tendencies of the past, the CPD said. "There is no structural and policy change and there is no surprise."

Debapriya Bhattacharya, a distinguished fellow of the CPD, called the budget "status quo" because it largely reflected the economic policies and tendencies seen in the last one decade.

"We have not seen much sensitivity about the existing new situations and new pressures being built up on the economy."

Bhattacharya said the biggest issue in the financial sector is the promise to introduce a uniform value-added tax after a year. "But we have not seen anything about the plan related to its preparation."

The noted economist said the banking sector is facing a huge crisis, but Muhith said nothing about it in the budget.

Bhattacharya, however, said the budget is not that ambitious when it comes to the annual development programme (ADP) compared to the "ambitious" ADPs in the previous years.

The CPD said it would be wiser to borrow from the banking sector in the coming days by way of cutting pressures on the national savings certificates. 

The CPD welcomed the finance minister's proposal to impose 28 percent duty on rice imports.

The CPD also welcomed the finance minister's decision to increase the number of beneficiaries under the social safety net programmes and increase the payment they receive.