As the measures taken through monetary policy are failing to tame indomitable inflation in Bangladesh, eminent economists suggest the government enhance food stock and raise open-market sale of foodstuffs to mitigate inflationary pressure on the commoners.
They came up with the suggestion at a pre-budget meeting Sunday with Finance Adviser Dr Salehuddin Ahmed at the state guesthouse Padma in the capital, Dhaka, as the process of making the next national budget gets underway at a crucial juncture of the country.
"Their main suggestion was about challenges in lowering inflation," the adviser told newsmen after the meeting was over.
"They told me that as the monetary-policy steps are not working in this case, you have to make buffer stock, make open sale of products, and make them more regular," he added.
Mr Ahmed said the economists wanted the government to take measures for increased employment generation to help lowering inequality.
"The employment generation should not be on ad-hoc basis rather they should be permanent and a continuous process," he said, referring to the suggestions made by the noted economists.
Mr Ahmed acknowledges that the economists have made some good suggestions on enhancing tax collection -- which trails far behind the target as of now.
They include raising direct tax collection instead of indirect taxes which put pressure on the commoners, and revisiting corporate-tax rate since it has already gone very high.
At the same time, the economists have suggested introduction of civil case for those who do not comply with tax system.
"But you know the businesses. If we do so, the businesses will say they are being treated as criminal," said the adviser. "I did not commit about it because it has a legal implication."
The finance adviser of the interim government, referring to the discussions, said social- safety-net allowances are going into the wrong hands and so the economists
suggested stopping the leaks. Also, they suggested enhancing allowance coverage and the annuity given to the poor people.
He said the economists suggested adding 2.0 million more people under the safety net with the existing 10 million.
The custodian of exchequer in the interim period of governance said some economists suggested 100-day employment-guarantee scheme amid high inflation and unemployment.
He said no such scheme would be taken but the government would work on skill development of people and use the local expertise for automation of various systems.
The economists have also suggested lessening tax exemptions and "already I did so in many cases", he said.
"In the past, exemption was made on political considerations," said the adviser.
Mr Ahmed said the economists suggested not making the coming budget bigger rather making allocations that government can manage.
Dr MM Akash, an economics professor at the University of Dhaka, told newsmen after the meeting that the economists requested the finance adviser to leave a footprint in the next budget so that the next government continues those works, since the tenure of this government is likely to end before next June.
He said he had proposed introduction of employment-guarantee scheme for low-income people amid the hardship. "I proposed taking initiatives that provide at least 100 days of work to the needy people."
MM Akash said at the meeting, Chairman of the Centre for Policy Dialogue (CPD) Dr Rehman Sobhan proposed introducing a law allowing tax officials to take punitive measures against those who evade taxes.
Among others, eminent economists Dr. Zaidi Sattar, Mustafa K. Mujeri, Dr. Quazi Shahabuddin, Professor Mustafizur Rahman and Dr Fahmida Khatun attended the meeting.
syful-islam@outlook.com
