The Democratic Budget Movement and Oxfam, Bangladesh have called for a significant increase in the tax-free income threshold for individuals to Tk6 lakh in the next fiscal year’s budget. The appeal was made during an event focused on analysing the upcoming budget, held today (29 May) at the Cirdap International Conference Centre in the capital.

Economists and experts at the event argued that current social safety programmes are inadequate to help people cope with the ongoing inflation. They urged the government to boost funding for these programmes in the forthcoming budget. They also recommended a guaranteed minimum of 100 workdays per year for the poorest individuals, with a daily wage of Tk500.

The Democratic Budget Movement and Oxfam, Bangladesh, jointly hosted the event, which included two sessions in collaboration with the Safety and Rights Society, Participatory Research Action and Network, and The Earth. The Democratic Budget Movement aims to educate citizens, taxpayers, and professionals about the national budget’s structure and process, while Oxfam seeks to foster a vibrant and equitable society in Bangladesh.

In the first session, Professor MM Akash from Dhaka University’s Economics Department highlighted the severe impact of inflation on people’s average income. “Inflation has been around 12% on average for the last two years, and under this pressure, the average income of people has decreased by about 24%,” he said.

He pointed out that wealth is being concentrated in the hands of corrupt businessmen, bureaucrats, and politicians, and much of it is being laundered out of the country. “If laundering could be stopped, social security demands of ordinary people could be met,” he added. Professor Akash stressed that the tax-free income limit should be raised to Tk6 lakh and that allocations for social safety should be increased in the budget.

Former lawmaker Barrister Shameem Haider Patwary echoed these sentiments, advocating for a budget management approach prioritising public interest over bureaucratic and business interests. He attributed the country’s financial challenges to the lack of a democratic financial system within the government. Patwary also suggested that social security programmes could be better managed by redirecting funds currently allocated as capacity charges in the electricity sector.

The second session focused on the transition to a green economy, with speakers advocating for reducing dependence on fossil fuels. M Zakir Hossain Khan from Change Initiative, Rubaiya Nasrin Sejuti from Oxfam Bangladesh, and Md Mosleh Uddin Suchok from The Earth, delivered speeches emphasizing the importance of creating green jobs.

They argued that without creating such jobs, the economy would remain dependent on unsustainable practices. They called for an end to investments in fossil fuels and an increase in investments in clean energy, with incentives to encourage private investment in this sector.