The upcoming budget for the fiscal year 2023-24 in Bangladesh is highly anticipated by the low and middle-income segments and businesses alike. The focus lies on restoring the affordability of essential commodities and addressing skyrocketing inflation that has affected food and nutrition accessibility for millions. To retain export growth, investments, and employment, industry leaders seek a more investment-friendly environment reflected in the tax policy. The government should offer incentives, maintain reasonable tax levels, continue existing trade facilities, and provide affordable utility services to support businesses. As this budget coincides with the upcoming general elections, the government aims to appease the people and woo voters by offering promises to both the masses and the business community.
However, challenges lie ahead, such as depleting foreign exchange reserves and the need to comply with International Monetary Fund (IMF) loan conditions. The budget must balance complex issues, including economic recovery and growth versus political promises. Tough initiatives and reform measures are expected, such as revenue increase, subsidy reduction, and addressing non-performing loans. The budget should prioritize facilitating exports, addressing inflation rates influenced by global geopolitical turmoil, and finding acceptable solutions for various economic challenges. The finance minister faces an acid test in devising policy measures that consider the diverse needs of the economy and make progress toward a brighter future.
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