GDP increase, inflation reduction goals unrealistic: CPD

The Centre for Policy Dialogue (CPD) has said that the goals targeted in the FY 2023-24 budget to reduce inflation and increase GDP growth are unrealistic and ambitious.

CPD Executive Director Dr Fahmida Khatun came up with the remark at a press briefing organised to express the think-tank’s formal reactions on the FY 2023-24 budget on Friday.

She expressed doubt about achieving the goals of reducing inflation to 6 per cent and increasing GDP growth to 7.5 percent.  She also that most of the expenditure and revenue targets in the proposed budget were based on unrealistic assumptions.

The CPD executive director pointed out that the inflation target was based on the assumption of the USD equivalent to Tk104, while it had already surpassed Tk108.

It also argued that the simultaneous increase in the tax-free income limit to Tk350,000 and the introduction of a minimum tax is contradictory and could result in discriminatory outcomes.

"We suggest the withdrawal of the proposed minimum tax," said Fahmida.

Dr Mustafizur Rahman, a distinguished Fellow of CPD, along with other researchers from the think tank were present during the event.