In yet another blow to stock market investors, the government plans to impose a capital gains tax on them from next fiscal year.

The new budget for the upcoming fiscal year is unlikely to provide respite from one of the longest spells of sustained inflation in Bangladesh as the government’s measures appear to be missing the impetus required to contain the price spiral.

The food ministry spent less in fiscal 2022-2023 compared to fiscal 2009-2010, according to data on expenditure over the last 13 years.

The government has slightly reduced the allocations for transport and power and energy compared to the outgoing fiscal year.

Bangladesh’s per capita income will be $3,000 at the end of FY25 as the government expects economic growth to recover. Per capita GDP is projected at $2,780 at the end of FY24. It has been growing steadily over the last two decades. It was $700 in 2000 and about $300 in 1990.

While the cost of living remains high, with the inflation rate hovering at over 9 percent throughout the year, no ray of hope came for the common people in the budget declared yesterday. This is upsetting for the low and middle-income groups of society. 

The budget for fiscal 2024-25 proposes a total expenditure of Tk 797,000 crore with a total tax revenue of Tk 541,000 crore, resulting in a deficit of Tk 256,000 crore.

Finance ministers don’t possess crystal balls to captivate the audience with mystical allure. They don’t have magical foresight. They are real-world agents of economic policy. In times of crisis, which often repeats itself in modern capitalism, they chart a path out of the dark abyss. Sometimes they prove to be successful, sometimes not.

The proposed national budget for FY25 has remained a widely speculated topic for the people of this country. Bangladesh has been navigating a precarious global economy over the last 24 months, and the economic aftereffects of Covid-19 and the Ukraine-Russia have not only complicated macroeconomic management but created widespread concerns across both domestic and international actors.

Budget FY25 What does it mean for you?

The trade-off between growth and inflation is pretty apparent. It implies loss of employment and income. The critical factor in this respect is the availability and effective use of the government's fiscal space.

The macroeconomic imperative was to tighten the budget, particularly the domestic financing component of the budget deficit.

The recently proposed national budget for FY25 has remained a widely speculated topic for the people of this country

They blame govt for focusing on imported solutions rather than own resources

A total expenditure of Tk 797,000 crore has been proposed with a total tax revenue of Tk 541,000 crore, resulting in a deficit of Tk 256,000 crore

Budget admits we are in a crisis, but offers no direction out of it

While the cost of living remains high, with the inflation rate hovering at over 9 percent throughout the year, no ray of hope came for the common people in the budget declared yesterday.

The tax rate on income from provident funds and other retirement funds, which are maintained by companies for their employees, will remain unchanged at 15 percent for the fiscal year 2024-25. 

After Finance Minister AH Mahmood Ali presented the proposed FY25 budget in the parliament today, political parties were divided on the subject, some terming it “practical”, while others calling it “unrealistic”, and “a new plan for looting”

Of the total deficit financing, Tk 90,700 crore will come from foreign sources while Tk 160,900 crore will come from domestic sources.