CPD for increment to curb inflation

 
The Centre for Policy Dialogue (CPD) on Monday urged the government to provide in the next national budget a special increment to both public and private employees to curb the pinch of inflation.

During the presentation of the recommendations for the budget of the next fiscal year 2023-24 on Monday, Research Director of CPD Golam Moazzem said the inflation had especially hurt fixed-income earners, suggesting the special increment be given immediately.

Fahmida Khatun, executive director of CDP, "The price inflation of essential food products has increased by more than 25 percent which cannot be understood using just the average price inflation data published by the government."

"The price of sugar in Bangladesh was higher than that of the US market. Rice prices in the country were higher than in Vietnam and Thailand, although Bangladesh is self-sufficient in food and imports a small amount of rice," she pointed out. Considering the global and domestic situation the think-tank suggested targeted fiscal measures take centre stage, focusing on catering to the needs of the fixed-income earning and low-income population. Such measures should be accompanied by monetary measures that focus on stability, such as market-based interest rates and exchange rates.

The CPD also emphasised that good governance and discipline were essential for these policies to bring forth their intended results.

It also said that the reform measures proposed by the International Monetary Fund (IMF) might prove to be beneficial in this regard.

The think-tank also noted that while the current scenario may be disincentivising for a political government in an election year, proper acknowledgement of the current situation should be at the forefront while formulating the budget for the next fiscal year. "Failure to do so will result in a macro-fiscal policy stance that does not meet the needs of the time."