Budget should focus on reducing inequality

Economist Dr Mustafa K Mujeri has urged the government to place its main emphasis on reducing of societal inequality in the forthcoming national budget for the fiscal year 2025-26.

He made the call during a pre-budget discussion titled "National Budget for FY2025-2026: A Pre-Budget Discussion", organised by the Bangladesh University of Business and Technology (BUBT) at the university's International Conference Hall in the capital on Sunday.

"Inequality has been on the rise in the country for many years; therefore, the government must prioritise addressing this issue," said Mujeri, who serves as the executive director of the Institute for Inclusive Finance and Development (InM).

"The national budget is the most powerful tool for addressing inequality," he said, adding that equitable access to resources can be ensured through well-crafted policy interventions.

Mujeri called for a thorough reassessment of prevailing economic policies to enhance their efficacy.

He stressed the need for the strategic use of interest rate adjustments alongside harmonised fiscal and monetary policies to rein in persistent inflation.

Identifying the small and medium enterprise (SME) sector as crucial for fostering entrepreneurship, he also urged the government to align educational investment with improving quality, bridging labour market gaps, and building a skilled workforce.

To counter corruption, Mujeri emphasised the importance of ensuring value for money, especially in the context of increasingly large budgets.

The government should also integrate artificial intelligence into the budgeting process to boost efficiency and transparency, he said.

In addressing the challenges within the financial sector, he advocated for stringent measures to tackle the issue of non-performing loans (NPLs).

Other speakers at the event included Md Mahmudul Hassan, associate professor and chairman of the Department of Economics at BUBT, and Prof Santi Narayan Ghosh, dean of the School of Business and Economics.