Parliament today (June 30, 2022) passed the Tk 678,064 crore national budget for the fiscal year 2022-23, with the theme “Return to the Path of Development Leaving the Covid-19 Behind” to overcome the impact of coronavirus pandemic and Russia-Ukraine war on the economy.

The government can expect to save up to Tk 5,500 crore for the austerity measures taken so far to preserve the foreign exchange reserves and tame inflation, according to the finance ministry.

Although Bangladesh is witnessing a golden hour in terms of demographic dividend, a lack of decent employment opportunities in the country is leading to rising unemployment among educated youths, according to experts.

The tax-free income limit for individuals has been kept unchanged at Tk 300,000 for the next fiscal year. The threshold for women, senior citizens, individuals belonging to the third gender, physically challenged persons and wounded freedom fighters also did not see any change.

Over the last couple of months, various sections of society called upon the government to raise the tax-free income limit amid the rising cost of living.

The new budget provides nothing for the uncle next-door who has spent his life pinching pennies in a rented flat, nothing for the millennial slogging away 60 hours a week and still wondering how to pay for their second child’s school fees, nothing for the mother hesitating to buy beef for a special day.

The government plans to extend VAT exemption and offer tax holiday to all export-oriented goods and services in order to create new export sectors, diversify goods and explore new markets.

The proposed budget has not properly addressed the pressing issues – higher inflation and the US dollar crisis -- that are causing immense macroeconomic imbalances, said economists in their immediate reaction.

When reassurance was needed, he exuded panic.

The budget proposed in parliament yesterday is geared toward attracting private sector investment to create employment and expand businesses, but some proposals need to be reconsidered, said economists and businesspeople.

The proposed budget placed in parliament yesterday is geared towards attracting private sector investment to create employment and to expand business, but some proposals need to be reconsidered, said economists and businesspeople.

The proposed budget did not offer any new way out for the recovery of learning loss of millions of students caused by the Covid-19 pandemic through school closures.

Money laundered out of the country can be legalised in exchange of seven to fifteen percent tax under a new proposal aimed to boost revenue as well as mobilise foreign currency. 

Amid the Russia-Ukraine war and global food price hike, Finance Minister AHM Mustafa Kamal placed emphasis on boosting food production to ensure food security in the country.

After the Awami League government came to power in 2009, it took up several gigantic development projects with a view to transforming the country’s communication and transport infrastructure.

The need for expanding the coverage of social protection schemes with new approaches has never been felt so badly than now as people are struggling to keep their heads above water amid one crisis on top of another.

The government is planning to invest $80 billion to shift the country from climate-vulnerable to a sustainable climate-resilient country under Mujib Climate Prosperity Plan (MCPP) by 2030, Finance Minister AHM Mustafa Kamal said yesterday while unveiling the national budget for the fiscal year 2022-2023.

A universal pension scheme for citizens aged 61 and above will be introduced from fiscal 2022-23, said Finance Minister AHM Mustafa Kamal yesterday.

With prices of mobile phones and broadband internet set to go up in the next fiscal year, the proposed budget would not be favourable to further development of the ICT sector, experts have said.

Withdrawal of the existing 5 percent advance tax on gold import has been proposed in the budget for fiscal 2022-23 to encourage import of the precious metal through formal channel and discourage its smuggling.