Budget lacks measures to combat inflation: SANEM

The proposed budget for FY 2022-23 lacks measures to address the rising inflation, according to South Asian Network on Economic Modeling (SANEM).

“The government could have waived taxes on import of essentials as a temporary measure to contain inflation,” said Selim Raihan, executive director of SANEM, in his budget analysis.

Sayema Haque Bidisha, presented a paper on the SANEM’s analysis of the proposed budget where she said a detailed and specific plan of action should be sketched out for containing inflation.

SANEM also recommended strengthening the market monitoring mechanism so that unscrupulous businesses could not take advantage.

“Both monetary and fiscal policies need to be linked more specifically to inflation targets and macro stability,” Bidisha said in her presentation.

SANEM also thinks that the tax-free income ceiling should be enhanced considering inflationary pressure on taxpayers.

More to follow...