Safety fund inadequate to deal with inflationary pressure: Sanem | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Thursday
June 12, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
THURSDAY, JUNE 12, 2025
Safety fund inadequate to deal with inflationary pressure: Sanem

Economy

TBS Report
13 June, 2022, 10:40 pm
Last modified: 13 June, 2022, 10:42 pm

Related News

  • Inflationary pressure drags April deposit growth down to 8.21%
  • Inflation expected to decline more than budget target: BB governor
  • Inflation eases slightly to 9.05% in May
  • Inflation expected to drop below 8% in June: Finance adviser
  • Inflation, exchange rate shocks to intensify fiscal pressure in FY26

Safety fund inadequate to deal with inflationary pressure: Sanem

TBS Report
13 June, 2022, 10:40 pm
Last modified: 13 June, 2022, 10:42 pm
Safety fund inadequate to deal with inflationary pressure: Sanem

The social safety allocation in the proposed budget for the FY2022-23 is inadequate to deal with Covid fallout and the mounting inflationary pressures, according to the South Asian Network on Economic Modeling (Sanem).

Excluding spendings such as pension for retired public employees, interest and stipends, the social safety allocation was reduced to 11.2% from the existing 13.7% in the proposed budget, the research organisation said on Monday.

According to Sanem's budget analysis, since the per capita allocation for the elderly citizens and widows did not increase, the beneficiaries will be able to buy less products than before. Besides, reduced allocation for open market sales will cut the food aid to the poor.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Although the proposed budget pointed out various challenges, it was not discussed which groups of the population would be affected by those challenges. Besides, the budget lacks measures to support the people who are facing the vulnerabilities.

While presenting the keynote at the press conference at Sanem office in Dhaka, Sanem Research Director Sayema Haque Bidisha said shrinking social safety allocation conflicts with the government's 8th Five Year Plan.

The plan stipulates allocating 2% of the GDP in the social safety net.    

Commenting that the existing tax structure is fuelling inequality, she said that 33% of the government's total revenue comes from income tax. Increasing income tax reduces inequality. Even now the tax net has not been expanded substantially, while the country also lags in progressive tax structure.  

Sayema Haque Bidisha believes the proposed budget had scopes for creating jobs, increasing growth, reducing inflation and alleviating poverty and inequality.

She said the import duty on some products has been reduced in the budget. While there is a possibility that those products would be cheaper, still there is a scope for price readjustment and import duty reconfiguration if the situation worsens.

"Even if our growth rate increases, the real benefits of reducing the corporate tax rate may not be available as employment rates fall in line with growth," she said, adding, "The benefits of growth are often not reaching the people."

Sanem Executive Director Selim Raihan said the budget is not consistent with the Eighth Five Year Plan and the Perspective Plan.

He said the allocations for health, education and social safety were supposed to be more as per the plans. Although six challenges were mentioned in the budget, the measures to counter those are not clear. Besides, it is unclear who would be affected by those risks and whose vulnerabilities would become severe.

He said the budget does not reflect the helplessness of a large part of the population. "If we cannot identify the problem properly, we will not be able to walk the path of solution."

"It is important to look at whether the government agencies responsible to keep the market stable are working properly. In the current reality, it was necessary to increase the per capita social safety allowance. At the same time, we wanted more allocation for the open market sale programme."  

"But in reality, the allocation for the open market sale has been reduced this time. The tax burden on low-income people has been increased," Sanem executive director noted.  

He also remarked that if the tax-free income limit was raised to Tk3.50 lakh, the government would not have suffered much.

Selim Raihan said Sanem does not support the proposed amnesty to bring back laundered money. "Questions should be raised as to why the money was laundered in the first place."

Earlier, in her keynote presentation, Sayema Haque Bidisha said there is no official data on the household income and expenditure survey after 2016.

According to the survey, 38% of the country's total wealth is occupied by 10% of rich people. This inequality has further increased during the pandemic time although there are no official statistics in this regard.

In this context, she suggested tax reform to reduce inequality.

A lack of information has always been a major problem, which became more evident during Covid-19 in poverty surveys conducted by the country's private research agencies.

The government has not done any such survey or research but is raising various questions about the credibility of the surveys.

Top News

inflation / SANEM

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Saifuzzaman Chowdhury. Photo: Collected
    UK crime agency now freezes assets of ex-land minister Saifuzzaman: AJ
  • Chief Adviser Muhammad Yunus speaks at the Chatham House in London on 11 June 2025. Photo: CA Press Wing
    No desire to be part of next elected govt: CA Yunus
  • File photo of BNP Standing Committee Member Amir Khasru Mahmud Chowdhury. Photo: Collected
    Khasru flies to London ahead of Yunus-Tarique meeting

MOST VIEWED

  • Illustration: Duniya Jahan/ TBS
    Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon
  • A file photo of Bangladesh Bank Governor Dr Ahsan H Mansur. Photo: Collected
    'I have no relation with this': Ahsan Mansur debunks Joy’s allegations over daughter’s Dubai flat
  • Faiz Ahmad Tayeb. Photo: BSS
    Import duty on raw materials for e-bikes, lithium batteries reduced from 80% to 1% in some cases: Faiz Taiyeb
  • File photo of ex-prime minister Sheikh Hasina and her son Sajeeb Wazed Joy. Photo: Collected
    Joy spends Eid with Hasina in India: Indian media
  • Mercantile Bank withholds dividend amid Tk1,700cr provision shortfall
    Mercantile Bank withholds dividend amid Tk1,700cr provision shortfall
  • Shakil Ahmed. Photo: Collected
    DU student allegedly hangs himself following threats over old derogatory comment about Prophet on Facebook

Related News

  • Inflationary pressure drags April deposit growth down to 8.21%
  • Inflation expected to decline more than budget target: BB governor
  • Inflation eases slightly to 9.05% in May
  • Inflation expected to drop below 8% in June: Finance adviser
  • Inflation, exchange rate shocks to intensify fiscal pressure in FY26

Features

Among pet birds in the country, lovebirds are the most common, and they are also the most numerous in the haat. Photo: Junayet Rashel

Where feathers meet fortune: How a small pigeon stall became Dhaka’s premiere bird market

9h | Panorama
Illustration: Duniya Jahan/ TBS

Forget Katy Perry, here’s Bangladesh’s Ruthba Yasmin shooting for the moon

1d | Features
File photo of Eid holidaymakers returning to the capital from their country homes/Rajib Dhar

Dhaka: The city we never want to return to, but always do

2d | Features
Photo collage shows political posters in Bagerhat. Photos: Jannatul Naym Pieal

From Sheikh Dynasty to sibling rivalry: Bagerhat signals a turning tide in local politics

4d | Bangladesh

More Videos from TBS

Why is Omicron XBB more contagious?

Why is Omicron XBB more contagious?

5h | TBS Stories
What did Dr. Yunus say at the Chatham House Dialogue in London?

What did Dr. Yunus say at the Chatham House Dialogue in London?

6h | TBS Today
News of The Day, 11 JUNE 2025

News of The Day, 11 JUNE 2025

7h | TBS News of the day
WB predicts worst decade for global growth since 60s

WB predicts worst decade for global growth since 60s

9h | TBS Stories
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net