Bangladesh Economic Association (BEA), a professional body of economists, on Monday proposed an alternative budget amounting to Tk 13.97 trillion or 2.47 times higher than the existing budget.
The size of the alternative budget is equivalent to 55 per cent of gross domestic product (GDP).
Revenue collection has been estimated at Tk 12.7 trillion or 91 per cent while the remaining 9.0 per cent as deficit.
The BEA proposed the alternative budget at its office through virtual media.
Professor Dr Abul Barkat read out the proposal while BEA vice president ZM Saleh was the moderator. BEA General Secretary Dr. Jamal Uddin Ahmed also spoke on the occasion.
Dr Barkat said of theTk 1.35 trillion deficit, Tk 700 billion will come from savings instruments while the remaining amount may come from reissuance of savings certificates and launching new savings instruments through public- private partnership.
The government will not need to borrow from the banking system. Even it will not need foreign financing to meet the deficit, he added.
Mr.Barkat also proposed creating a separate division under the health ministry with a budget of Tk 400 billion to meet the growing need for health support following the outbreak of coronavirus.
The education budget should be at least 5.0 per cent of the GDP.
During the 66-day lockdown, he said, a total of 36 million people lost their jobs.
The status of the rich, however, remained unchanged at 17 million, he said, adding that there was a significant change in classes of the people during the lockdown.
"Nearly 60 million people lost their previous status in terms of income due to the Covid-19 during the lockdown,"
Prof Barkat said the Gini coefficient, a popular measure of income inequality, rose to 0.635 against 0.48 earlier. The rise in 0-1.0 scale implies higher income inequality in the society.
According to the Palma ratio, he said, an alternative to the Gini coefficient shows 7.53 against 2.92 previously.
"The higher Palma ratio means there is huge income inequality now in Bangladesh which is dangerous for the society".
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