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South Asian CSO demanded for a de-carbonized world through “ending Fossil Fuel commitment” Developed Countries must deliver a percentage of GNI for New Climate Finance Goal, 2025-30 period

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equitybd
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Baku, Azerbaijan, November 11, 2024 – During the ongoing Cop 29 Global Climate Conference in Baku, leaders of Civil Society from Most Vulnerable Countries [MVCs] and Least Developed Countries [LDCs] gathered in a press conference and demanded a concreate commitment for “Ending Fossil Fuel” from the big emitters for a de-carbonized world in future. They also demanded “A percentage of their GNI [Gross National Income]” for finalizing the NCQG [New Collective and Quantified Goal] on Finance for 2025-2030 period.

The press conference, titled “LDC’s & MVC Peoples’ Expectations and CoP 29,” took place at the CoP 29 climate conference center in Baku. Representatives from various Civil Society Organizations (CSOs) including Mr. Avishek Shrestha from DBI-Nepal, Mr. Soumya Datta from India and Mrs. Tetet Neura Lauron from Rosa Luxemburg, Philippine, Mr. Thailk Kariyawasan from Sri Lanka and Mr. Mrityunjoy from Bangladesh participated and shared their insights. The keynote address on civil society expectations was presented by Aminul Hoque from EquityBD, Bangladesh.

Presenting the keynote, Aminul Hoque said that global leaders continue failed their commitment with compliance in both mitigation and financing responsibilities and showing or come with new idea, vague solution those are creates obstacles and diluting MVCs priorities and demands. The proposed CFAF [Climate Finance Action Fund] in CoP-29 negotiation such a “Vague Idea” which in fact to divert the core attention of demanding Trillion Dollar financing commitment from developed countries for NCQG.

He put some key demands in favor of civil society, those are (i) Developed countries must change their theory of diverting peoples’ demand and give a real commitment in both mitigation and financing for next 10-year period 2025-35, (ii) A political declaration to be made by big emitters for ending fossil fuel by closing and phase out of all coal & fossil fuel-based power plants by 2040 to get impact by 2050. This declaration must be reflected in “National Determined Contribution” [NDC-3] in 2025, (iii) The existing climate financing system is extremely unfair and debt-driven. So that the NCQG must be designed through ensuring a percentage of GNI of developed countries. This fund will be delivered followed by sub-sector of NCQG like Adaptation, Mitigation, and capacity development of MVC and LDCs.

Thilk from Sri Lanka the warn that the world with high temperature records at least 86 days exceeding 1.5°C above pre-industrial levels which in fact awful. Therefore, to get it back on track, global annual GHG emissions gap must be narrowed, and this will be possible by relentlessly strengthening mitigation action for this decade. In this context, CoP 29 must deliver a clear timeline for transitioning away from fossil fuels, leading to complete phase out and a clear reflection next in the NDC-3 in 2025.

Tetet criticize that the global public finance now itself at a crossroads due to private sector dependency and not participatory. IFIs and the global north governments must stop their overreliance on private sector and plan participatory with CBDR [Common but Differentiated Responsibility] principal. She also criticizes the NCQG included the carbon trade to legitimize the private sector and their business. We urgently need public finance policy, priorities, and governance to push to a 1.5-degree aligned, just transition, rooted in collective wellbeing following global and local equity she demands.

Mrityunjoy opine that 300 million people are suffering food security around the world and these people need to adapt with climate change impact. We also protect the nature and align the new NDCs with Kunming- Montreal bio-diversity Protocol. Financing trillion dollars a year is not just a talk, the annex  02 parties can manage to mobilse more than five trillion dollars per year by revising and redirecting the unjust oil subsidies.

Soumya Datta said that, Azerbaijan has an opportunity to show genuine climate leadership learning from previous cop events and by focusing debate on the decarbonization dilemmas of Petro-states. Using UNFCCC dialogues Azerbaijan will take initiatives for exploring appropriate solutions. But we confused, seeing the existing Azerbaijan’s current trajectory, this opportunity looks likely to be lost. He warns global leaders to a real outcome.

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Civil society says: Climate Finance will Go in Vain Unless Global Warming Kept to 2 Degree Celsius

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equitybd
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Dhaka, 26 October 2024: On the eve of the 29th Climate Conference (COP29) to be held in Baku, Azerbaijan, the speakers at a seminar organised by non-government organisations in Dhaka today said that the earth will no longer be habitable if the global warming exceeds two degrees Celsius in 2100. Climate finance, the most important discussion at the upcoming COP29, will have no point to be discussed. Therefore, the main focus of all government delegations, including Bangladesh, should be to reduce carbon emissions by 42% by 2030 compared to 2019 to keep the global temperature in 2100 between 1.5 and 2 degrees Celsius.

This is what the speakers said at the seminar organized by EquityBD, a network of non-government development and humanitarian organisations, at the CIRDAP Auditorium, Topkhana Road, Dhaka today. The co-hosting organisations of the seminar are COAST Foundation, CDP, CPRD, AOSED, BCJF, Manusher Jonno Foundation and CSRL. Mr. Rezaul Karim Chowdhury, Chief Moderator of EquityBD presided the seminar where Mr. Dharitri Kumar Sarkar of the Ministry of Environment and Forest, Dr. Fazle Rabbi of PKSF,  Mr. Shamsuddoha of CPRD, Ziaul Haque Mukta of CSRL, Mr. Ahsanul Wahed of Manusher Jonno Foundation, Jahangir Hasan Masum of CDP, Syed Aminul Huq of COAST Foundation spoke. Mr. Abul Hasan of the COAST Foundation presented the keynote speech.

Mr. Shamsuddoha of CPRD, a member of the government delegation at the Climate Conference, said that no definition of climate finance has been set. As a result, all money, including loans and investments from rich countries responsible for climate change to poor and affected countries, continues to be called climate finance. He said that the aid money owed by the affected countries was not given through the UNFCCC but was channelled through various financial institutions including the World Bank who are doing business with the MVCs.

Dharitri Kumar Sarkar of the Ministry of Environment and Forests said that today’s discussion and recommendations will be added to the position paper prepared by the Bangladesh government for the upcoming climate conference. He said that the biggest challenge of the climate conference is that all 128 members have to agree to take any decision. As a result, quick decisions are not possible there.

Dr. Fazle Rabbi of PKSF said less than 1% of the money pledged by rich countries for climate mitigation or adaptation has come to affected countries. Again, even if the money comes, we are often unable to use it due to infrastructural challenges and policy constraints. These must be resolved.

CSRL’s Ziaul Haque Mukta said that even if all the countries in the world implement 100% of their commitments to reduce greenhouse gas emissions, global warming will exceed 3.1% by 2100. That would be a terrible disaster for the earth. This warming must be kept within 2 degrees Celsius to keep the earth habitable. Therefore 42% of the GHG emission must be reduced by 2030 compared to that of 2019. There are no visible efforts of it.

Abul Hasan of the COAST Foundation said during the keynote speech that the government should play a role in favour of not imposing any conditions for the poor and affected countries in the new global climate finance. He said the main discussion of the upcoming climate conference will be about financing. To make that funding need-based and realistic, recipient countries must submit their realistic needs within the timeframe.

Syed Aminul Haque of COAST Foundation said that to make climate finance result-oriented, a new global financial framework must be formulated. The existing structure is not able to give results.

Moderator of the seminar Rezaul Karim Chowdhury concluded that at least 75% of climate finance should be managed through the UNFCCC. The more funding that goes out of the UNFCCC, the more this funding will be traded.

Please download related paper [Bangla Press] [English Press] [Position Paper] [Presentation]

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Civil society urges to take the best possible steps to protect women in disaster: Press Conference to Celebrate International Rural Women’s Day

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equitybd
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Dhaka, 14 October 2024. Civil society has called for urgent action to protect women during disasters, emphasizing their right to physical, mental and reproductive healthcare and security. Women often face significant long-term physical and emotional harm due to the lack of awareness, sensitization and inadequate emergency services. Rights-based civil society representatives urged that the protection of women must be a key consideration in all disaster relief and service delivery efforts.

This appeal was made during a virtual press conference organized by the National Committee for the Observation of International Rural Women’s Day. Speakers highlighted the physical, financial and emotional pressure on women during and after disasters, which often goes undervalued. They stressed the need for women-friendly and inclusive initiatives, designed with the collaboration of both government and non-government agencies, to address the challenges women face during and after such events.

Khadijatul Kubra, Program Officer, COAST Foundation, presented the keynote. The event was chaired by Shamima Akhtar, Chairperson of the National Committee for International Rural Women’s Day Observation and moderated by Ferdous Ara Rumee, the Secretariat Coordinator of the committee. Other committee members, including Mothura Tripura (Khagrachari), Tofazzal Sohel (Hobiganj), Sayed (Bogra), Md. Khalilur Rahman (Jhalokathi), Aynun Nahar (Mymensingh), Rotna Borman (Khulna), Firoza Begum (Lalmonirhat), Jafrul Alam (Chapainawabganj), Swarna (BNNRC), Mustafa Kamal Akand and others, also shared their insights at the event.

In her keynote, Khadijatul Kubra stated that over 5.1 million people have been affected by floods in the eastern region this year. During disasters, low-income and marginalized communities suffer the most, particularly women and children. Women often spend nights on rooftops or in boats to protect their belongings and livestock, while children fall ill due to wet clothes.

Women, especially during their menstrual period, struggle to maintain hygiene due to a lack of clean water and sanitary items. Pregnant women are also at significant risk, as reproductive health services remain inadequate during these difficult times. The conditions in shelters, characterized by overcrowding, lack of separate toilets for women and insufficient clean water, heighten the stress on women and undermine their safety and dignity.

Mothura Tripura pointed out that the abortion rate in the eastern regions has risen due to the stress of floods, asset loss, malnutrition and inadequate care. She urged the provision of emergency reproductive services for pregnant women during disasters. Feroza Begum noted that there are no integrated services (physical, mental, reproductive health and others) for women post-disaster. Tofazzal Sohel emphasized the need for mental health services for women to address trauma and stress. Aynun Nahar underscored the importance of menstrual health awareness and the proper use and disposal of sanitary products during disasters.

Ferdous Ara Rumee highlighted that disaster situations are particularly dangerous for pregnant women and stressed the need for comprehensive awareness programs on reproductive health in collaboration with local communities and health workers. Shamima Akhtar called on the government to adopt and implement effective programs to protect women’s health during disasters.

On behalf of the organizers, Mustafa Kamal Akand noted that International Rural Women’s Day is celebrated across over 50 districts in Bangladesh through rallies, seminars, community events and fairs, recognizing rural women’s critical contributions.

Please download the related paper [Bangla Press] [English Press] [Position Paper] [Presentation]
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CSO Speakers at WTO Public Forum in Geneva 2024 : WTO must Understand the Core Spirit of Agriculture to Deal with the Agreement on Agriculture

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equitybd
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Geneva, 10th Sept 2024: Government and non-government speakers at a side event in the Public Forum 2024 of the WTO at its headquarters in Geneva today said that small-scale farmers across the world are the major contributors to sustainability, yet they have suffered the most from the effects of climate change and environmental degradation. The event titled “Trade rules for supporting small-scale farming as contributors to green trade in agriculture” is jointly organized by the COAST Foundation, an NGO of Bangladesh, and Humundi, an NGO of Belgium.

The speakers are Mr. Ogwuche Sunday is a Senior Counsellor with the Mission of Nigeria to the WTO, Mr. Jonas Jaccard of Humundi, a Brussels-based NGO, Ms Helene Bank, Board Leader of Handelskampanjen, Norway, and Ms Ranja Sengupta, Senior Researcher and Head of TWN India Trust. Barkat Ullah Maruf, Director of Partnership and Development Communication of COAST Foundation from Bangladesh moderated the session.

In his speech Mr Ogwuche Sunday, the government representative of Nigeria at the WTO said the the small-scale farmers in Nigeria hardly have access to technology and lack capacity by a big margin to compete with the current form of agricultural trade negotiation. They are the heart of agricultural production yet they are out of the discussion.

Mr Jonas Jaccard, Policy Officer of Humundi said, the EU is one of the biggest negotiators of agriculture in WTO yet the small-scale farmers across the European countries are suffering from the price fall of the agricultural products due to the unfair form of subsidy rules of WTO.

Ms Helene Bank of Handelskampanjen (The Trade Campaign) said in her speech that the small-scale farmers know the local knowledge and how to use the local resources better. They are suffering not because of the poor financing but of the poor policy.

Ranja Sengupta of Third World Network (TWN), India said, the mandate of the Agreement on Agriculture under WTO was to ensure sustainability of agriculture as advised by the SDG. But, unfortunately, it has failed to do so. They could have accepted the Public Stockholding as a solution but ignored it.

In the opening remarks the moderator of the session, Barkat Ullah Maruf of COAST Foundation said that now the world has a technological advancement than ever. But we cannot download the food with this technology. The farmers need to produce it and this is the core spirit of agriculture. WTO rules on agriculture must be able to address this by supporting small-scale farmers for sustainability and food security.

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Civil Society and Journalists Concern WTO before Public Forum 2024 : Bangladesh must address Data Discrepancy before WTO Negotiation

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equitybd
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Dhaka, 29 August 2024: In a media workshop in Dhaka today civil society and economic journalists expressed their concern about the data discrepancy of Bangladesh before the country starts negotiations in WTO. EquityBD and the Economic Reporters’ Forum (ERF) jointly organised the Media workshop titled “WTO Trade Rules and LDC Graduation of Bangladesh” chaired by Refayet Ullah Mridha of the Daily Star and moderated by Abul Kashem, General Secretary of ERF.

Over fifty economic journalists from different news agencies in Bangladesh participated in the Media Workshop. The event’s main speaker was Mr Hafizur Rahman, Additional Secretary and former DG of WTO Cell, while Mr Rezaul Karim Chowdhury, the Chief Moderator of EquityBD gave the welcome speech. Barkat Ullah Maruf presented the keynote on different agreements of WTO.

In his welcome speech, Mr Rezaul Karim Chowdhury said, EquityBD and COAST Foundation have been working on WTO since 2005 when we demanded to form a separate WTO Cell under the Commerce Ministry to effectively monitor the WTO issues and build the country’s negotiation capacity.

Barkat Ullah Maruf of COAST Foundation in his Keynote presentation said we must have a national strategy based on true data and benefit calculation before we go for the graduation from LDC which will ultimately impact our negotiation in WTO in future. He added we have data discrepancies derived from quick political ambition for which we are about to lose some negotiation ground in different sectors including Agriculture and Fisheries.

In his expert speech Mr Hafizur Rahman, the Additional Secretary of the Bangladesh secretariat and a member of the Bangladesh Competition Commission, said we have the benefit of either side of LDC graduation. We will be benefited if we graduate and that will include the advancement of our competencies to openly compete with developed and developing countries. We will also be benefited if delay our graduation for a few years and that will include the continued opportunities that the LDCs have. We have to choose either of those provisions.

Mr. Refayet Ullah Mridha, the president of ERF said in the closing remarks that Bangladesh should take the opportunity to delay the graduation for at least ten more years to review all the national data and get prepared to face the challenge.

The moderator of the session Mr Abul Kashem, the General Secretary of ERF invited all of the present economic reporters to understand the WTO rules and create reports in their news media for the sake of Bangladesh’s development.

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কর বৃদ্ধি নয় বরং দূর্নীতি বন্ধ ও অর্থ পাচার রোধ হোক সর্বোচ্চ অগ্রাধিকার

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equitybd
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ইকুইটিবিডি অবস্থানপত্র : বাংলাদেশ বাজেট ২০২৪-২৫, ২৯-জুন ২০২৪ইং

ঋণ দানে দাতা সংস্থার শর্ত দারিদ্রদের উপর কষাঘাত

কর বৃদ্ধি নয় বরং দূর্নীতি বন্ধ ও অর্থ পাচার রোধ হোক সর্বোচ্চ অগ্রাধিকার

ক. ঋন নির্র্ভরশীল জাতীয় বাজেট ২০২৪-২০২৫

সরকার ২০২৪-২৫ অর্থবছরের জন্য ৭,৯৭,০০০ কোটি টাকার বাজেট ঘোষনা করছে, যা চলতি ২০২৩-২৪ বছরের সংশোধিত বাজেটের তুলনায় ১২% বেশি। এ ছাড়া রাজস্ব সংগ্রহের লক্ষ্যমাত্রা ধরা হয়েছে ৫,৪১,০০০ কোটি টাকা যা চলতি অর্থবছরের সংশোধিত লক্ষ্যমাত্রার চেয়ে ১৩% বেশি এবং মোট বাজটের ৬৮%। মোট ঘাটতি বাজেট ২,৫৬,০০০ কোটি টাকা যা মোট জিডিপির ৪.৬%।

এই ঘাটতি মোকাবেলা করার জন্য সরকারকে আভ্যন্তরিন ও বৈদেশিক ঋণ এবং আভ্যন্তরিন অন্যান্য উৎসের উপর নির্ভর করতে হবে। যার মধ্যে ১,৫৬,০০০ কোটি টাকা আসবে অভ্যন্তরীণ খাত থেকে (যেমন ব্যাংক ঋণ, সঞ্চয়পত্র ও বন্ড বিক্রি, ইত্যাদি) এবং বাকি ১ লাখ কোটি টাকা নেওয়া হবে বিদেশি ঋণ হিসেবে। অর্থ মন্ত্রণালয়ের হিসাবে, গত ডিসেম্বর’২৩ মাস শেষে মোট ঋণের পরিমাণ ১৬,৫৯,৩৩৪ কোটি টাকা। এর মধ্যে অভ্যন্তরীণ উৎসের ঋণ ৯,৫৩,৮১৪ কোটি টাকা এবং বিদেশি ঋণ ৭,০৫,৫২০ কোটি টাকা। এতে করে মাথাপিছু ঋণ দাড়িয়েছে ১,১৮,০০০ টাকা যা গত বছরের তুলনায় ১২,৭৭৫ টাকা বেশি। সরকারকে নতুন বছরে ১,১৩,৫০০ কোটি টাকা সুদ পরিশোধ করতে হবে যা ৩টি পদ্মা সেতু নির্মান ব্যয়ের প্রায় সমান। পরিসংখ্যানে দেখা গেছে, ০৫ বছরে অভ্যন্তরীণ ঋণ দ্বিগুণ হয়েছে এবং গত এক দশকে বিদেশি ঋণ পরিশোধ বেড়েছে ১০৮%। চলতি ২০২৩-২৪ অর্থবছরে সুদ-আসলসহ বিদেশি ঋণ ৩০০ কোটি ডলারের বেশি পরিশোধ করতে হবে এবং নতুন বছরে তা হবে ৫০০ কোটি ডলারের মত, যা প্রায় ৬৭% বেশি। [প্রথমআলো, ০৪/০৬/২০২৪]

প্রতিবছর সরকার রাজস্ব আদায়ের যে লক্ষ্যমাত্রা নির্ধারন করে তা কখনও অর্জন করতে পারেনা এবং প্রতিবারই এর লক্ষমাত্রা কমিয়ে আনা হয়। অন্যদিকে ফি-বছর পরিচালন ব্যয় বৃদ্ধি পাচ্ছে। সরকারের উচিত সরকারি পরিচালন ব্যয় পুন:পর্যলোচনা করে অপ্রয়োজনীয় ব্যয় বন্ধ করে কিছুটা হলেও রাজস্ব ঘাটতি মোকাবেলা করা। কারন সরকারকে বর্তমানে একটি কঠিন চেলেঞ্জের মধ্যে যেতে হচ্ছে, যেমন:

(১) চরম মূল্যস্ফিতি, (২) বৈদেশিক রিজার্ভ ভয়াবহ আকারে কমে যাওয়া যা বর্তমানে কম-বেশি ১৯ বিলিয়ন ডলার (যা গত ডিসেম্বর ২০২০ অর্থাৎ কোভিড-১৯ এর সময় ৪২.৯৭ বিলয়ন ডলার ছিল), (৩) রিজার্ভ কমে যাওয়ায় বৈদেশিক বিনিয়োগ কমে যাওয়া (গত বছর শেষে যা ছিল ৩ বিলিয়ন ডলারের সামান্য বেশি এবং ২০২২ সালে তা ছিল ৩.৫ বিলিয়ন ডলার। সুত্র: বাংলাদেশ ব্যাংক, ২৮/০৫/২০২৪), (৪) রাজস্ব আদায়ে লক্ষ্যমাত্র অর্জন করতে না পারা, (৫) মেগা প্রকল্পের বিদেশি ঋন পরিশোধ শুরু, (৬) অর্থপাচার ও দূর্নীতি বৃদ্ধি, (৭) আর্থিক খাতের বিশৃঙ্খলা, (৮) ঋন নির্ভরতা বৃদ্ধি, (৯) ডলারের মূল্য বৃদ্ধির চাপ, (১০) বিদেশি কোম্পানীর ৫০০ কোটি ডলার আটকা, ইত্যাদি।

খ. ঋণ দানে দাতা সংস্থার শর্ত যা দরিদ্রকে আরোও দারিদ্র করছে

নতুন বাজেটে যে রাজস্বনীতি ঘোষণা করা হয়েছে, তাতে আন্তর্জাতিক মুদ্রা তহবিলের (আইএমএফ) পরামর্শ বেশি গুরুত্ব পাচ্ছে। কারন আইএমএফ ৩০টি শর্তে সরকারকে ৪.৫ বিলিয়ন ঋণ দিতে রাজি হয়েছে এর মধ্যে অন্যতম শর্ত হচ্ছে (১) বিদ্যুৎ, জ্বালানি তেল ও গ্যাসের ভর্তুকি কমানো এবং মূল্য বৃদ্ধি করা, (২) করের হার ও এর আওতা বাড়ানো বিশেষ করে ভ্যাট বা পরোক্ষ করের হার ও আওতা বাড়ানো, (৩) ব্যক্তি কর বৃদ্ধি (২৫% হতে ৩০% করা), (৪) কর্পোরেট কর কমানো (২২% হতে ২০% করা), (৫) আমদানি শুল্ক কমানো, (৬) ব্যাংক সুদের লক প্রথা তুলে দেয়া (ফলে ব্যাংক গুলো সিঙ্গেল ডিজিট থেকে বের হয়ে ডাবল ডিজিটে চড়া সুদে ঋন দিচ্ছে), ইত্যাদি। এর ফলে আমদানি ব্যায় বৃদ্ধি পাচ্ছে, ক্ষুদ্র ও মাঝারি শিল্পে ঋণ প্রবাহ কমে গেছে ও দ্রব্যের মূল্যস্ফিতি ঘটছে। ফলে একদিকে জনগণের বিশেষ করে মধ্যবিত্ত/নিম্ন মধ্যবিত্ত/ গরীরের কাঁধে যেমন করের বোঝা চাপানো হচ্ছে তেমনি ভর্তুকি কমিয়ে দিয়ে জীবনযাত্রা ব্যয় আরও বেশী বাড়ানো হচ্ছে যা ক্রমান্বয়ে অসহনীয় হয়ে উঠছে। অথচ আইএমএফ অর্থপাচার রোধ, দূর্নীতি কমানো ও সরকারের অপ্রয়োজনীয় ব্যয় কমানোর কোন কথা বলছে না।

ভর্তুকির টাকা জনগনের কল্যানে না ব্যয় করে কর্পোরেট ও বিশেষ ব্যবসায়ি শ্রেনীর কল্যানে ব্যয় হচ্ছে। নতুন বছরের বাজেটে ভর্তুকি বাবদ ১,০৮,২৪০ কোটি টাকা বরাদ্দ করা হয়েছে। কিন্তু এই ভর্তুকির কোথায় ব্যয় করা হবে? আইএমএফ-এর মরামর্শে বিদ্যুতের দাম বছরে চার বার বাড়ানোর চিন্তা করছে। এই ভর্তুকির ৩৭% বা ৪০,০০০ কোটি বরাদ্দ দেয়া হয়েছে বিদ্যুত খাতে যার প্রায় ৮১% যাবে ক্যাপাসিটি চার্জ ব্যয়ের জন্য।

গত ২০২২-২৩ অর্থ বছরে ক্যাপাসিটি চর্জ বাবদ দেয়া হয় ২৮,০০০ কোটি টাকা যা ২০১৭-১৮ সালে ছিল ৫,৬০০ কোটি টাকা। যা ৫বছরে ৫গুন বা ৪০০% বৃদ্ধি পেয়েছে এবং গত ১৪ বছরে গচ্ছা ৯০,০০০ কোটি টাকারও বেশি। একটি বিশেষ ব্যবসায়ি মহলকে এই সুবিধা দেয়া হচ্ছে বলে আমরা মনে করি এবং এদের জন্য রয়েছে বিশেষ “দায়-মুক্তি আইন”।

চুক্তি অনুযায়ী বিদ্যুৎ উৎপাদন হোক আর না হোক, বেসরকারি বিদ্যুৎকেন্দ্রগুলোর এই ক্যাপাসিটি চার্জ সরকারকে দিয়ে যেতে হবে অথচ বিদ্যুৎ উৎপাদের ৪০% থেকে ৪৮% অব্যবহৃত থেকে যায়। তাহলে কেন এই অতিরিক্ত উৎপাদন? কেন সরকারকে এর জন্য শুধু শুধু অর্থ ব্যয় কতে হবে? যেসকল বেসরকারি বিদ্যুৎকেন্দ্রগুলো অলসভাবে পড়ে আছে বা উৎপাদনের সক্ষমতা নেই, তাদেরকে কেন এই ক্যাপাসিটি চার্জ দিতে হবে? দু:খজনক যে, এই চার্জের টাকা জনগনের কষ্টার্জিত ট্যাক্সের টাকাতে দেওয়া হবে এবং অন্যদিকে বিদ্যুৎবিল বাড়িয়ে জনগনের উপর চাপ সৃষ্টি করা হচ্ছে।  [প্রথমআলো: ০৫/০৫/২০২৪; ডেইলি স্টার-বাংলা: ০৯/০৬/২০২৪]।

সুতরাং কর আদায়ে সরকারকে কৌশলী হতে হবে এবং কর ন্যয্যতার বিষয়টি নিশ্চিত করতে হবে অর্থাৎ সঠিকভাবে সম্পদ সংগ্রহ ও তা পুনঃবন্টকারীর ভূমিকা নিতে হবে। সেক্ষেত্রে ধনীব্যক্তিদের কাছ থেকে বেশী কর আদায় করে এর অর্থ সাধারন ও গরীব জনগনের কল্যানে ব্যায় করতে হবে। বিশেষ করে খাদ্য, স্বাস্থ্য, শিক্ষা, চিকিৎসা, পানি, জ্বালানি, বিদ্যুৎ ইত্যাদি প্রয়োজনীয় সেবায় বরাদ্দ বাড়িয়ে এদের জীবন যাত্রা মানের উন্নয়ন ঘটাতে হবে।

গ. রাজস্ব আয় বৃদ্ধিতে অপ্রদর্শিত অর্থনীতি ও অর্থ পাচার বড় বাধা

১. কালো টাকা সাদা করার রাজনৈতিক অর্থনীতি:

বাংলাদেশে রাজস্ব আদায় ব্যবস্থাপনার অন্যতম দুর্বল ভিত্তি হচ্ছে অপ্রদর্শিত অর্থনীতি। সরকার এই অপ্রদর্শিত অর্থনৈতি কিভাবে মোকাবেলা করবে তার কোন ফলপ্রসু উদ্যোগ না নিয়ে বরং প্রতি বছরের ন্যয় নতুন বছরেও ১৫% কর দিয়ে সকল অসাধূ ব্যক্তি ও ব্যবসায়ীদেরকে কালো টাকা সাদা করার সুযোগ দিচ্ছে। এতে রাজস্ব ব্যবস্থাপনায় দুর্নীতি এবং আর্থিক অনিয়ম আরোও উৎসাহিত হবে যা কালো টাকার বিস্তার ঘটাতে সহায়ক হবে। এতে করে প্রকৃত কর প্রদানকারীরা নিরুৎসাহিত হবে। মাত্র ১৫% কর দিয়ে কালো টাকা সাদা করার সুযোগ দেওয়ার বিপরীতে সৎ করদাতাদের সর্বোচ্চ ৩০% কর দেয়ার বিধান বৈষম্যমূলক এবং অসাংবিধানিক। আমরা মনে করি, সরকার কিছু অসাধু ব্যবসায়ির স্বার্থে এই সুবিধা প্রদান করছে যাতে করে বিপুল পরিমান অর্জিত কালো টাকার সম্পদ সাদা করে ব্যাংক হতে নামে-বেনামে ঋণ নিয়ে তা আর পরিশোধ না করে বিদেশে পাচার করে দেয়া বা আরোও অবৈধ সম্পদ তৈরি করা।

বাংলাদেশ ব্যাংক এবং বিভিন্ন অর্থনীতিবিদদের মতে, দেশের অনানুষ্ঠানিক অর্থনীতির পরিমাণ মোট জিডিপি’র ৪৮% হতে ৮৪%। এর গড় হার (৫০%) বিবেচনা করলে ২০২৩-২৪ অর্থবছরে এই অর্থনীতির (জিডিপি হিসেবে) পরিমাণ ২৫ লক্ষ ২৪ হাজার কোটি টাকারও বেশি এবং যা উক্ত বছরের জাতীয় বাজেটের সাড়ে ৩ গুনেরও বেশি। এক্ষেত্রে যদি কালো অর্থনৈতিক কার্যাবলীসমুহকে উম্মোচন করা যায় তাহলে একদিকে যেমন জাতীয় উৎপাদন বৃদ্ধি ও কর্মসংস্থান সৃষ্টি হবে, তেমনি দেশী-বিদেশী ঋণ গ্রহনের প্রবনতা কমবে, প্রত্যক্ষ কর আদায়ের হার বৃদ্ধি পাবে এবং পরোক্ষ কর (ভ্যাট) নির্রশীলতা হ্রাস পাওয়ার সম্ভাবনা থাকবে। এ কর্মকান্ডের প্রভাবে সরকারের ঘাটতি বাজেটের আশংকা হ্রাস পাবে।

বাংলাদেশ অর্থনীতি সমিতির তথ্য অনুযায়ী গত ৫০ বছরে বাংলাদেশে মোট পুঞ্জীভূত কালোটাকার পরিমাণ দাঁড়িয়েছে ১ কোটি ৩২ লাখ কোটি টাকা। আর পাচার হওয়া অর্থের পরিমাণ ১১ লাখ ৯২ হাজার কোটি টাকা। সেখান থেকে আগামী অর্থবছরে যদি কালো টাকার মাত্র ০. ৯৮% ও পাচার হওয়া অর্থের ০.৪৯% উদ্ধার করা যায়, তাহলে সরকারের আয় হবে ১৫ হাজার কোটি টাকা। [বাংলা ট্রিবিউন, ০৩/০৬/২০২৪]।

Global Financial Integrity (GFI) -এর রিপোর্ট অনুযায়ী  আন্তর্জাতিক বাণিজ্যের আড়ালে প্রতি বছর বাংলাদেশ থেকে গড়ে ৬৪,০০০ কোটি টাকা বিদেশে পাচার হচ্ছে। ২০১৬ থেকে ২০২০, এই ৫ বছরে পাচারকারীরা ৩,২০,০০০ কোটি টাকা পাচার করেছে, যার মধ্যে শুধু ২০১৫ সালে ১ বছরেই পাচার হয়ে যায় ৯৮,০০০ কোটি টাকা। পাচারকৃত টাকার পরিমাণ বিবেচনায় দক্ষিণ এশিয়ায় পাচারকারী দেশ হিসেবে বাংলাদেশের অবস্থান ২য়।

Bangladesh Financial Intelligence Unit (BIFU) এর মতে এই অর্থ মূলত: আমদানি-রপ্তানির সময় পণ্যের প্রকৃত মূল্য গোপন, বিল কারচুপি, ঘুষ, দুর্নীতি, আয়কর গোপন ইত্যাদির মাধ্যমে বিদেশে পাচার হয়েছে। অর্থ পাচার রোধে সরকারের কিছু নীতিমালা থাকলেও এর সুষ্ঠু ও কার্যকর বাস্তবায়নের অভাবে দেশ থেকে অর্থ পাচার রোধ করা সম্ভব হচ্ছে না। [সময় নিউজ: ১৪/০৫/২০২২]।

বাংলাদেশের শুল্ক গোয়েন্দাদের মতে, তৈরি পোশাক রপ্তানির আড়ালে দেশ থেকে ৮২১ কোটি টাকার বেশি অর্থ বিদেশে পাচার হচ্ছে। তাদের তথ্য মতে, এটি পুরো ঘটনার ছোট একটি অংশ মাত্র, পাচারের আসল চিত্র আরও অনেক বড়। [বিবিসি নিউজ বাংলা, ৬ সেপ্টেম্বর ২০২৩]

বর্তমানে ডলার সংকটের পেছনে হুন্ডি ব্যবসা দায়ি এবং তা বন্ধ হলে দেশের ডলার বাজারে চলমান অস্থিরতা কাটবে। এজন্য ছোট ছোট চুনোপুঁটির চেয়ে রাঘববোয়ালদের বিচারের আওতায় এনে দৃষ্টান্তমূলক শাস্তির ব্যবস্থা করতে হবে। পুলিশের অপরাধ তদন্ত বিভাগ (সিআইডি) বলছে, ৫ হাজারের বেশি এজেন্ট বিভিন্ন মোবাইল ফোনে আর্থিক সেবাদাতা (এমএফএস) প্রতিষ্ঠানের মাধ্যমে হন্ডির কারবার চালাচ্ছে। ২০২১ থেকে ২০২২ সালের জুলাই পর্যন্ত ৭৫,০০০ কোটি টাকা (৭.৮ বিলিয়ন ডলার) পাচার করেছে হুন্ডি ব্যবসায়ীরা। [বাংলাদেশ প্রতিদিন: ০৬/০৯/২০২৩]

ঘ. ট্যাক্স-ভ্যাটের চাপ বেড়েই চলেছে

আইএমএফ এবার সব ভ্যাট ১৫% করে দিতে সরকারকে চাপ দিচ্ছে এবং সরকার সে পথেই এগুচ্ছে। চলতি অর্থবছরে ভ্যাট ছিল মোট রাজস্বের ৩৮% যা এই অর্থবছরে হতে পারে ৫০% ওপরে। ভ্যাট সব সময় নিম্নে যে থাকে অর্থাৎ সাধারণ মানুষের ওপরে পড়ে এবং এই মূল্যস্ফীতির যুগে তা আরও বোঝা হয়ে যাবে। এই পরোক্ষ কর দেশের দারিদ্র্যের হারের ওপর চাপ বাড়াচ্ছে, যার কারণে তা প্রত্যাশিত মাত্রায় এর হার কমছে না। রিসার্চ অ্যান্ড পলিসি ইন্টিগ্রেশন ফর ডেভেলপমেন্ট (র‍্যাপিড) পরিচালিত সমীক্ষায় দেখা যায়, পরোক্ষ করের বোঝা এক শতাংশ পয়েন্ট বাড়লে দারিদ্র্য বাড়ে ০.৪২ শতাংশ। যে সকল ব্যক্তি ও প্রতিষ্ঠান হাজার কোটি টাকা ট্যাক্স ফাকি দিচ্ছে, তাদের না ধরে রাজস্ব আদায়ের সহজ হাতিয়ার হিসেবে ভ্যাট-এর হার ও এর আওতা বাড়ানো হচ্ছে।

তদ্রূপ ট্যাক্স আয় বাড়াতে সরকার অগ্রিম আয়করের দিকে বেশি নজর দিচ্ছে। এর ফলে যারা ট্যাক্স দেন, তাঁদের ওপর চাপ পড়বে। এই অর্থবছরে সরকারি চাকরিজীবীদের বেশির ভাগ ভাতায় আয়করমুক্ত থাকলেও বেসরকারি চাকরিজীবীদের জন্য তা ছিল ৪.৫০ লক্ষ টাকা পর্যন্ত। এ ছাড়া বিভিন্ন বিনিয়োগে কর রেয়াত ছিল, কিন্তু এসব সুবিধা উঠিয়ে দিলে সাধারণ মানুষের ওপর বিশাল চাপ বাড়বে। তাই আমাদের দাবি করের নিম্ন হার বাড়ালেও সঙ্গে নিম্ন সীমা ৫ লাখ এবং আগের ভাতা এবং রেয়াত সুবিধা বজায় রাখা। এ ছাড়াও সরকারি চাকরিজীবীদের যে দ্বৈত আইন করে সব ভাতাতে করমুক্ত করা হয়েছে, তা বাতিল করা হোক অথবা বেসরকারি চাকরিজীবীদের জন্যও একই সুবিধা দেওয়া হোক। একই দেশে দুই আইন থাকতে পারে না। [প্রথম আলো: ০৫/০৫/২০২৪]

ঙ. ঋণ খেলাপী ও ব্যাংকিং সেক্টরে অস্থিরতা ও বিনিয়োগ সংকট

ব্যাংকগুলোর অনিয়ম ও জালিয়াতি দিন দিন বেড়েই চলছে। বাংলাদেশ ব্যাংক-এ তথ্য অনুযায়ী গত ৩ মাসে (জানু-মার্চ, ২০২৪) খেলাপি ঋণ বেড়েছে ৩৬,৬৬২ কোটি টাকা এবং মার্চে’২৪ শেষে তা বেড়ে হয়েছে ১,৮২,২৯৫ কোটি টাকা। গত ২০১৫ সালে খেলাপী ঋন ছিল ৫০,১৫৫ কোটি টাকা, সে হিসেবে মার্চ’২৪ শেষে খেলাপী ঋন বেড়েছে প্রায় ৪ গুন বা ২৬২%। তার মধ্যে শুধুমাত্র গত ১ বছরে রাষ্ট্রায়ত্ত ৬ ব্যাংকের (সোনালী, রুপালী, অগ্রনী, জনতা, বেসিক ও বাংলাদেশ ডেভেলপমেন্ট ব্যাংক) খেলাপী ঋন বেড়েছে ৮৫,৮৬৯ কোটি টাকা (৪২%)। এর মধ্যে শীর্ষ ২০ ঋণখেলাপীর কাছে ব্যাংকগুলোর পাওনা ৩৫,০০০ কোটি টাকা।

শুধু বেসরকারি কোম্পানি নয়, রাষ্ট্রায়ত্ত সংস্থাগুলোও এখন ঋণখেলাপিতে পরিণত হয়েছে। বাংলাদেশ অর্থনৈতিক সমীক্ষা ২০২৪-এর তথ্য অনুযায়ী, রাষ্ট্রমালিকানাধীন ব্যাংকগুলোর কাছে ৮টি রাষ্ট্রায়ত্ত সংস্থার খেলাপি ঋণের পরিমাণ ১৮৪ কোটি টাকা। এর মধ্যে সবচেয়ে বেশি খেলাপি ঋণ বিজেএমসির যা পরিমান ১৩১ কোটি ৩০ লাখ টাকা বা ৭১.৩৬%। [প্রথম আলো, ১০/০৬/২০২৪]

সেন্টার ফর পলিসি ডায়ালগ (সিপিডি) বলছে, গত ১৫ বছরে সরকারি-বেসরকারি ব্যাংক থেকে ২৪টি ছোট-বড় অনিয়মের মাধ্যমে ৯২,২৬১ কোটি টাকা লুট হয়েছে; যা চলতি অর্থবছরে (২০২৩-২৪) বাজেটের ১২ শতাংশের বেশি এবং মোট স্বাস্থ্য বাজেটের প্রায় ২.৫ গুন। [বিবিসি নিউজ বাংলা: ২৪/১২/২০২৩]

প্রতিবছর খেলাপী ঋনের এই দুর্নাম ঘোচাতে ঋনের অবলোপন করা হয়। ব্যাংকগুলো গত ২০ বছরে (২০০৩ থেকে গত জুন ২০২৩ পর্যন্ত) ৬৭,৪৪০ কোটি টাকা খেলাপি ঋণ অবলোপন করেছে, ফলে অবলোপন বেড়েছে ১৮ গুণের বেশি। এর ফলে ব্যাংগুলোতে তারল্য সংকট সৃষ্টির কারনে ঋণ প্রবাহ ব্যহত হচ্ছে। ফলে ক্ষুদ্র, মাঝারি ও বৃহৎ শিল্পগুলো ক্ষতিগ্রস্থ হচ্ছে। এই ঋন গুলোর পেছনে বেশির ভাগই রাঘোব-বোয়ালদের হাত থাকায় এর আদায় যথাযথ ভাবে হচ্ছেনা অথচ কৃষকরা ঋণ নিলে তা আদায়ে কোন প্রকার ছাড় দেয়া হয় না এবং কোন কোন ক্ষেত্রে তাদের জেলেও যেতে হয়। [ডেইলি স্টার বাংলা: ০৬-জুন’২৪; পেসেঞ্জার ভয়েস: ২৫-জুন’২৪]।

সরকার দূর্বল ব্যাংগুলো একিভুতকরনের উদ্যোগ গ্রহন করেছে, যার মধ্যে রেড জোনে আছে ১০টি ব্যাংক। আমরা মনে করি ঋণ খেলাপিদের সুযোগ করে দিতেই এই একিভুতকরনের ব্যবস্থা। সীমাহীন দুর্নীতির মাধ্যমে অপরিকল্পিত ও অপ্রয়োজনীয় ঋণ বিতরণের মাধ্যমে এসব ব্যাংককে দুর্বল ব্যাংকে পরিণত করা হয়েছে। [প্রথম আলো: ১৫/০৪/২০২৪]

চ.  কর ফাকি কি বন্ধ করা গেছে?

৩১-জানুয়ারি ২০২৪ পর্যন্ত ই-টিআইএন নিবন্ধনের সংখ্যা ৯৯,৬৯,৫১৫ জন, যা মোট জনসংখ্যার ৬%। ২০২৩-২৪ করবর্ষে রিটার্ন জমা পড়েছে ৩৬,৬২,০০০টি যা মোট জনসংখ্যার ২% এবং ই-টিআইএন নিবন্ধনের ৩৭%। জাতীয় রাজস্ব বোর্ড (এনবিআর)-এর মতে ৭.৭ কোটি মানুষের আয়কর প্রদানের সক্ষমতা আছে। দু:খজনক হচ্ছে, এনবিআর সে দিকে নজর না দিয়ে যারা নিয়মিত আয়কর দিচ্ছেন তাদের কে নানা ভাবে হায়রানি এবং আইনের বেড়াজালে ফেলছেন।

প্রকৃত আয় কম দেখিয়ে ব্যক্তি ও করপোরেট প্রতিষ্ঠানগুলো কর ফাঁকি দিয়ে থাকে। কর ফাঁকি ও অস্বচ্ছ ব্যবস্থাপনার কারণে সরকার বছরে ৫৫,০০০ কোটি টাকা থেকে ২,৯২,৫০০ কেটি টাকা রাজস্ব হারাচ্ছে। হারানো রাজস্বের এই পরিমাণ সে সময়ের সামাজিক নিরাপত্তা কর্মসূচি বরাদ্দের ৮গুণ; আর স্বাস্থ্য খাতের বরাদ্দের দ্বিগুণ। এ অর্থ আদায় করা গেলে স্বাস্থ্য খাতে মাথাপিছু ব্যয় ১,৮৬২ টাকা থেকে বাড়িয়ে ৬,৮৪৪ টাকা এবং শিক্ষা খাতে ৪,৬৫৬ টাকা থেকে বাড়িয়ে ৯,৬৩৮ টাকা করা যেত। কর ফাঁকি ও কর এড়ানোর দৃষ্টিতে ১৪১টি দেশের মধ্যে বাংলাদেশের অবস্থান ৫২তম। [বাংলানিউজ টোয়েন্টিফোর.কম: ০৩/০৪/২০২৩, যুগান্তর: ০৪/০৪/২০২৩]

ছ. সরকারি কর্মকর্তা/আমলাদের দূর্ণীতি বিরোধী আইন শীথিল

সরকারি কর্মকর্তাদের দূর্ণীতি বিরোধী আইন শীথিল করার ফলে তাদের দুর্নীতি আরো বেড়ে গেছে বরে আমরা মনে করি। ১৯৭৯ সালে প্রনীত Government Servant (Conduct) Rules অনুযায়ী প্রতি বছর সরকারি কর্মকর্তাদের সম্পদের বিবরণী প্রদান বাধ্যতামূলক ছিল, যা ২০০২ সালে পরিবর্তন করে ৫ বছর পর পর এই সম্পদের বিবরণী প্রদানের কথা বলা হয়েছে। অন্যদিকে ১৯৮৫ সালে প্রনীত Government Servant (Discipline and Appeal) Rules অনুযায়ী কোন সরকারি কমকর্তা দূর্নীতি করলে তাকে বরখাস্ত বা চাকুরি হারানোর নিয়ম থাকলেও ২০১৮ সালে তা পরিবর্তন করে শুধুমাত্র আর্থিক দন্ড বা পদাবনতির কথা বলা হয়েছে, অর্থাৎ বরখাস্ত বা চাকুরি হারানোর কোন ভয় নাই। উল্লেখ্য, জনাব প্রমথা রঞ্জন ঘটক, সহকারি সচীব থাকা অবস্থায় ২০২০ থেকে ২০২১ সালে সরকারি জমি বরাদ্দ সংক্রান্ত বিষয়ে ৭.৩৫ কোটি টাকা আত্মস্যাৎ করেন। এর ফলে তাকে সিনিয়র সহকারি সচীব পদ হতে সহকারি সচীব পদে পদাবনিত করা হয়। এতে করে সৎ কর্মকর্তাদের মনোবল ভেঙ্গে যাবার বা অসৎ হবার সম্ভাবনা থেকে যায়। আমরা সাম্প্রতি পুলিশ এবং রাজস্ব বিভাগের বিভিন্ন উচ্চপদস্থ কর্মকর্তা কর্তৃক হাজার কোটি টাকার দূর্ণীতির খবর বিভিন্ন পেপার-পত্রিকায় দেখেছি। সরকারের অন্য সেক্টরে যে এ ধরনের দূর্ণীতি হচ্ছে না, তার গেরান্টি কে দিবে? এসব হাজার কোটি টাকাতো জনগনের ট্যাক্সেরই টাকা। [ডেইলি স্টার: ২৯/০৬/২০২৪]

জ. আমাদের প্রস্তাবনা

  • ব্যাংক লুট, অর্থপাচার, দুর্নীতি ও চোরাচালান রোধে প্রধানমন্ত্রীর ঘোষিত জিরো টলারেন্স নীতি বাস্তবায়ন করতে হবে।
  • আর্থিক খাত নিয়ন্ত্রনে কেন্দ্রীয় ব্যাংককে স্বাধীন ও শক্তিশালী করা।
  • বহুজাতিক কোম্পানি গুলো যাতে প্রকৃত আয় গোপন করতে না পারে তার জন্য বিশেষ মনিটরিং সেল গঠন করতে হবে এবং এদের অডিট রিপোর্ট জনসম্মুখে প্রকাশ করতে হবে।
  • বিভিন্ন দেশের সাথে তথ্য আদান প্রদান ও ব্যাংক লেনদেনের স্বচ্ছতার উপর আন্ত-দেশীয় চুক্তি সম্পাদন করতে হবে এবং পাচারকৃত অর্থ ফিরিয়ে আনার আইনগত ব্যবস্থা নিতে হবে।
  • সরকারের আভ্যন্তরীন নিরীক্ষা জোড়দার করতে হবে এবং পূর্বের অডিট আপত্তির বিপরীতে কার্যকর ব্যবস্থা নিতে হবে।
  • বাংলাদেশী নাগরিকদের বা কোন দ্বৈত নাগরিকত্ব সম্পন্ন বাংলাদেশীদের বিদেশে সম্পদ ও ব্যাংক একাউন্ট থাকলে তাকে ফি-বছর বিবরণী বাংলাদেশে দিতে হবে। তথ্য গোপন ও কর ফাঁকি দিলে শাস্তিমূলক ব্যবস্থা নিতে হবে।
  • বিদেশীদের চাপে ভর্তুকি না কমিয়ে সরকারী বিভিন্ন অপ্রয়োজনীয় খরচ কমিয়ে ঘাটতি সমন্বয় করতে হবে।
  • বিভিন্ন ক্ষেত্রে ও সেক্টরে সরকারের অপ্রয়োজনীয় ব্যয় বন্ধ করার জন্য “Public Expebditure Review Commission” করতে হবে এবং সে অনুযায়ী অপ্রয়োজনীয় খরচ কমাতে হবে।
  • প্রত্যক্ষ কর ফাকি রোধে এনবিআর-কে শক্তিশালী, নিরপেক্ষ, স্বজ্ছ ও প্রভাবমুক্ত হতে হবে যাতে করে পরোক্ষ কর তথা ভ্যাট-এর উপর নির্ভরশীলতা কমে।
  • বেনামী সম্পদ কেনা বন্ধ করার জন্য বিভিন্ন দেশের এই সংক্রান্ত আইন অনুসরণ করে আইন প্রণয়ন করতে হবে।
  • Government Servant (Conduct) Rules এর ২০০২ সালের সংশোধিন আইন বাতিল করে পুন:রায় ১৯৭৯ সালের আইনে ফিরে যাওয়া এবং Government Servant (Discipline and Appeal) Rules এর ২০১৮ সালের সংশোধিন আইন বাতিল করে পুন:রায় ১৯৮৫ সালের আইন প্রনয়ন করা। যেখানে প্রতি বছর সরকারি কর্মকর্তাদের সম্পদের বিবরণী প্রদান বাধ্যতামূলক ছিল এবং দূর্ণীতি প্রমান হলে বরখাস্ত বা চাকুরি বাতিলের বিধান ছিল।

পজিশন পেপার ডাউনলোড করুন [ইংরেজি] [বাংলা]

মো: আহসানুল করিম । কোস্ট ফাউন্ডেশন/ইক্যুইটিবিডি । তাং ২৯/০৬/২০২৪

Prevent Corruption and Money Laundering, Don’t Increase Taxes

By
equitybd
-

EquityBD Draft Position Paper: Bangladesh National Budget 2024-25, Dt: 29-June 2024

Donors’ Conditions in Lending are Harsh

Prevent Corruption and Money Laundering, Don’t Increase Taxes

A. Debt-dependent National Budget 2024-2025

The Bangladesh government announced a budget of about $68 billion (BDT7,970 billion) for the next fiscal year 2024-25 which is 12% higher than the current year. The revenue collection target for the new year is about $46 billion (BDT5,410 billion) which is 13% higher than the current fiscal year and 68% of the proposed budget. The budget deficit for the new year is about $22 billion (BDT2,560 billion) which is 4.6% of total GDP ($430bn or BDT 50,480bn).

To meet this deficit, the government has to rely on internal and external borrowing and other domestic sources. To cover the deficit, $13 billion (BDT1560 billion) will come from the domestic sector (like domestic bank loans, sale of savings certificates, and different bonds, etc.) and the remaining $8.50 billion (BDT1,000 billion) will be taken as foreign loans. According to the Ministry of Finance, end of December 2023 total country’s debt is about $141 billion (BDT 16,593 billion) which is 33% of GDP and 02 times more than proposed budget. Out of this, the domestic debt is $81 billion (BDT9,538.14 billion) and foreign debt is $60 billion (BDT 7,055.20 billion). Foreign debt is 88% of new year budget.

As a result, per capita debt of the country stood at $10 billion (BDT1,180 billion) which is 12% ($108.7 or BDT 12,775) more than last year. In the new fiscal year, the government has to pay loan interest amounting to around $9.60 billion (BDT1,135 billion) from which 03 Padma Multipurpose Bridges can be built. Statistics show that domestic debt has doubled in 05 years and foreign debt repayment has increased by 108% in the last decade. In the current FY 2023-24, 3 billion dollars has to be paid as foreign debt repayment including principal interest and in the new year it is supposed to be 5 billion dollars which is 67% higher. [Daily Protho Alo, 04-June 2024]

Every year we see, the government never achieves the target that is set for revenue collection and later on the target is reviewed and narrowed down. On the other hand, operating expenses are increasing every year. The government should review the operating expenditure and curb the unnecessary expenditure to tackle the fiscal deficit to some extent. Because government is currently facing some tough challenges, like: (1) Extreme inflation, (2) Drastic fall of foreign reserves which is currently around $19 billion (during COVID-19 i.e. end of December 2020 it was $42.97 billion), (3) Declining of foreign investment (which was little over $3 billion in last year and $3.5 billion in 2022. Source: Bangladesh Bank, 28/05/2024), (4) Failure to achieve revenue collection targets, (5) Started repayment of foreign debt of mega projects, (6) Increased money laundering and corruption, (7) Disruption of financial sector, (8) Increase in debt dependency, (9) Pressure on dollar rate increase, (10) Withholding of 5 billion dollars by foreign companies, etc.

B. External debt conditions are increasing poverty

  1. Intervention by International Monetary Fund (IMF):

In the new year budget, the government has announced the new fiscal policy where IMF’s advice has given importance. Because IMF has agreed to lend $4.5 billion to the government under 30 conditions, where some crucial conditions are (1) Reducing subsidies and increasing prices of electricity, hydroelectricity, oil and gas, (2) Increasing rate and scope of taxes, especially VAT as indirect tax (3) Increase personal tax from 25% to 30%, (4) Reduce corporate tax 22% to 20%, (5) Reduce import duty, (6) Lifting bank interest ceiling (as a result, banks are giving loans at double digit interest rates which was earlier one digit), etc. Mater of fact that government is walking on that path.

As a result, import costs are increasing, credit flows to small and medium industries are decreasing, and inflation is increasing. The living cost of middle-class, lower middle-class, and poor are increasing and becoming unbearable due to placing tax burden on them and reducing subsidies on essential services. This is unfortunate that IMF is not saying anything about curbing money laundering, reducing corruption and cutting unnecessary government expenditure.

  1. Subsidy money going where?

The subsidy is spending for the welfare of the corporate and special business classes instead of general and poor people. Around $9.2 billion (BDT1,082.40 billion) has been allocated for subsidy in the new year budget. But the question is where will this subsidy be spent? As per IMF advice, the government is considering raising electricity prices 04 times a year, so that the entire cost of the production is recovered from the consumer.  37% of this subsidy or around $3.2 billion (BDT 400 billion) has been allocated to the power sector, of which about 81% will go as capacity charges for private power plants.

In last fiscal FY2022-23, government had paid about $2.6 billion (BDT 280 billion) as capacity charge to the private sector for electricity production. In FY2017-18, this capacity charge was about $518.5 million (BDT 56 billion) and has been increased 5 times or 400% in 5 years. On the other hand, in the last 14 years, the government has paid $7.60 billion (BDT 900 billion) in the name of capacity charge payment. We Think, this privilege is given to a special class of business and for them there has a special Indemnity Act as well.

As per contract, whether power is produced or not, the government must pay this capacity charge to the private power plants. At present, out of total production (about 27,000 megawatt), 40% to 48% of the power generation remains unused. So why this overproduction? Why should the government spend money on this? Why should the government pay the charge to those private power plants, who are inactive i.e. lying idle or have no capacity of power generation? It is unfortunate that these charges are being paid from people’s hard-earned tax money. [Prothom Alo: 05-May 2024; Daily Star-Bangla: 09-June 2024].

So, the government must be strategic in respect of tax collection and its fairness as well as ensured tax justice in respect of wealth collection and its redistribution. That is, more taxes should be collected from the rich and spent for the welfare of poor people. Especially needs to increase budget for food, health, education, water, electricity, gas, sanitation, etc. and reducing its cost for the improvement of the general and poor people.

C. Underground economy and Money laundering: Major hurdles to revenue growth

  1. Political economy of whitening black money:

One of the major challenges of revenue collection in Bangladesh is undisclosed money or black money. Government is not taking any effective initiative to tackle this undisclosed economy rather allowing all corrupted individuals and businessmen whitening their black money by paying 15% tax like previous years. This will further encourage corruption in all sectors which in turn will facilitate earning more black money. This will discourage the honest taxpayers. This is discriminatory and unconstitutional for the honest taxpayers who will pay maximum 30% tax whereas the black money holders will pay 15% tax for whitening their illegal money. We think that the government is providing this facility for the benefit of some corrupted businessmen so that they could show their illegally earned assets to the bank for borrowing loan and later on laundered it to abroad without paying them and creating more illegal assets.

According to Bangladesh Bank and various economists, the country’s informal economy is 48% to 84% of total GDP. Considering its average rate of 50%, the amount of this economy in FY2023-24 is around $215 billion (BDT25,240 billion), which is more than three and a half times of the national budget of FY2023-24 and around 84 times of Padma multi-purpose bridge ($3.6bn or BDT301.93bn). So, if the black economic activities can be exposed, then national production will be increased and employment will be created, as well as domestic and foreign borrowing will be decreased. Apart from that direct tax collection rate will be increased and dependency on indirect tax (VAT) will be decreased. It will also reduce the risk of deficit budgets.

  1. Can Money laundering be stopped?

According to the data of the Bangladesh Economic Association, the total accumulated amount of black money in Bangladesh in last 50 years is more than $1,123 billion (BDT1,32,000 billion), and the amount of smuggled money is more than $101 billion (BDT11,920 billion). If 0.98% of black money and 0.49% of the smuggled money can be recovered from there, then the government can earn $1.25 billion (BDT 150 billion). [Bangla Tribune, 03 June 2024].

As per Global Financial Integrity (GFI) report, every year an average of around $5.5 billion (BDT 640 billion) is siphoned off from Bangladesh to abroad under the guise of international trade. The report also said from 2016 to 2020 (in 5 years) $27.20 billion (BDT3,200 billion) have been smuggled of which $8.30 billion (BDT 980 billion) was in 2015 just in 1 year alone. Bangladesh ranked “Second” in South Asia in terms of amount of money smuggled.

According to Bangladesh Financial Intelligence Unit (BIFU), this money is mainly smuggled abroad through hiding the real value of goods during export-import, bill manipulation, bribery, corruption, tax evasion etc. Even though the government has some policies to prevent money laundering, but could not prevent properly due to lack of proper and effective  implementation of the policy. [Shomoy News: 14 May 2022].

According to Customs in Bangladesh, more than BDT 8.21 billion (around USD 85.5 million) are siphoned off from Bangladesh to abroad behind the export of ready-made garments. They said, this is a small part of the whole event, the real scam is much bigger. [BBC News Bangla: 06 September 2023]

At present, dollar crisis is one of the major crises in Bangladesh and Hundi business is highly responsible for this. According to the Criminal Investigation Department (CID) of the police, more than 5,000 agents are conducting Hundi transactions through Mobile Financial Service (MFS) of various mobile phone companies. From 2021 to July 2022, $7.8 billion (BDT 750 billion) was smuggled by hundi traders. To overcome this crisis, exemplary punishment should be given to the high-level criminals instead of petty criminals. [Bangladesh Protidin: 6 September 2023]

D. Tax-VAT burden is rising

The IMF is giving pressure the government to make all VAT rate 15% and it seems they are moving in that direction. VAT was 38% of the total revenue in FY2023-24 which may go up to 50% in the new financial year. VAT always hit badly the lower income group people and it will become more burdensome in the era of high inflation. This indirect tax (VAT) is also responsible for increasing country’s poverty rate. A study conducted by Research and Policy Integration for Development (RAPID) found that if 1% of indirect tax is increased then it increases poverty by 0.42%. The government is not catching those individuals and business entity who are evading billions of dollars of direct taxes rather increasing VAT (indirect tax) rate and its scope as easy tools of revenue mobilization.

The government also is paying more attention to collect and creating scopes of advance income tax to increase tax revenue. As a result, those who pay taxes will fall under pressure. While most of the allowances of govt. employees are exempted from income tax, but for private employees it is not, and it is up to $3,830 (BDT 450 thousand). So, our demand is to increase the lower tax rate and maintain the lower limit of $4,255 (BDT 500 thousand) and to keep previous provisions for tax exemption on allowances and investment. So, we urge the government to abolish such dual standard act or to keep same benefits for private sector employees like government employees in respect of tax payment. There cannot be two laws in the same country. [Prothom-Alo: 05 May 2024]

E. Default loans, Banking Instability, and Investment crisis

1. Lack of Good governance in Bank: Irregularities and fraudulences of banks are increasing day by day. According to the data of Bangladesh Bank, in the last 3 months (January-March, 2024), default loans increased by $3.3 billion (BDT 366.62 billion) and at the end of March’24, total defaulted loans stood at $107.5 billion (BDT11,822.95 bn). During 2015, the defaulted loan was around $4.5 billion (BDT 502 billion) and end of March 2024, it has increased almost 4 times/262% than 2015. Among them, in last one year the bad loan of 06 state-owned banks have increased by 42% which is $7.8 billion (BDT 858.69 billion). Out of this amount, $3.2 billion (BDT 350 billion) is to the top 20 defaulters. Apart from banks, the state-owned organizations have now become defaulters. As per Bangladesh Economic Survey 2024, the amount of defaulted loans of 8 state-owned organizations is $15.6 million (BDT 1.84 billion) and among them, BJMC’s has the highest amounting to $11.2 million (BDT 1.31 billion) which is 71.36%. [Prothom-Alo, 10 June 2024]

According to Center for Policy Dialogue (CPD), in the last 15 years around $8 billion (BDT 922.61 billion) have been looted from public and private banks through different irregularities, which is more than 12% budget of the FY2023-24 and about 2.5 times of total health budget. [BBC News Bangla, 24 Dec’23]

2. Written off of Loans are increasing: Loan written off is made every year to bring back its scenario to a good shape. In this process, banks had written off around $6 billion (BDT 674.40 billion) of defaulted loans in last 20 years (2003 to 2023), thus written off has increased more than 18 times. The consequence is, credit flow is disrupted due to liquidity crisis in banks and as a result small, medium and large-scale industries are suffering for investment. Most of the defaulted loans are not recovered properly as the powerful are behind them, but if the farmers take loans, then they are not given any concession rather in some cases they have to go to jail. [Star Bangla: 06-June 2024; Passenger Voice: 25-June 2024].

3. Bank Integration: Recently the government has taken initiatives to integrate weak banks, of which 10 banks are in the red zone. We think that this integration is giving an opportunity to a particular class of loan defaulters. These banks have turned into weak banks because of unplanned loan disbursements through immense corruption. [Prothom-Alo: 15-April 2024]

F. Has tax evasion been stopped?

End of January 2024, the registered e-TIN (Tax Identification Number) number was 9.97 million, which is 6% of the total population. Among them, 3.67 million taxpayers submitted their annual tax return in FY2023-24 which is 2% of total population and 37% of e-TIN holders which is so low. It is seen, NBR is not paying attention to this rather harassing those who are paying tax regularly and putting them in the trap of law.

Corporate entities ‍and individuals evaded taxes by hiding their real income. Thus, the government is losing revenue around $4.7 billion (BDT 550 billion) to around $25 billion (BDT2,925 billion) annually due to tax evasion and lack of transparency in management. This lost revenue is 8 times budget allocation of Social Safety-Net program; and twice of health budget. If this amount is collected, then per capita expenditure in the health sector could be increased from around $16 (BDT 1,862) to $58 (Tk 6,844) and in the education sector from around $40 (BDT 4,656) to $82 (BDT 9,638). Bangladesh ranks 52nd among 141 countries in terms of tax evasion and tax avoidance. [Bangla News24.com: 3-April’23, Daily Jugantar: 4-April’23]

G. Public Servants Anti-graft laws, rules relaxed

We think that government officials’ corruption has been increased due to the relaxation of anti-graft laws. According to the Government Servant (Conduct) Rules-1979, it was mandatory to submit wealth statement every year by government officials, which was changed in 2002 where wealth statement will be submitted in every 5 years. On the other hand, according to the Government Servant (Discipline and Appeal) Rules-1985, if a government servant commits any corruption, there is a rule of dismissal or loss of job. But in 2018, it has been changed which is either financial penalty or demotion, so no fear of dismissal or loss of job. Mentioned that Mr. Pramatha Ranjan Ghatak while he was Assistant Secretary, embezzled around $0.9 million (BDT 73.50 million)  from government land allocation during 2020 to 2021. As a result, he was demoted from the post of Senior Assistant Secretary to Assistant Secretary. We believe that it might break the morality of honest officials or possibility of being dishonest. We recently seen in different medias ‍about corruption of billions of monies by several high officials of police and revenue department. Our concern is that this corruption is also hitting other sectors of the government. This is unfortunate that these billions of monies are people’s tax paid money. [The Daily Star, 29-June 2024]

H. Recommendations:

  • Zero-tolerance policy (announced by the Prime Minister) should be implemented to prevent bank robbery, money laundering, corruption, and smuggling.
  • The central bank should be independent and strengthened to control the financial sector.
  • Special monitoring cells should be formed, and audit reports should be in public so that corporates couldn’t hide their true income.
  • Inter-country agreements for information sharing and transparency of bank transactions should be executed with different countries and legal measures should be taken to bring back the laundered money.
  • Internal audit should be strengthened, and effective action should be taken against previously found audit objections.
  • If a Bangladeshi citizen with dual citizenship has assets and bank accounts in abroad, then he/she must submit bank statements in every year. Strong punishment should be given for hiding information and tax evasion.
  • The deficit must be reconciled by reducing government’s various less important expenses without reducing the subsidy under the pressure of foreign donor.
  • A ‘Public Expenditure Review Commission’ should be introduced to stop unnecessary expenditure of government in various sectors.
  • NBR (National Board of Revenue) should be strong, neutral, transparent and free from influence to prevent direct tax evasion by individuals s and corporates which will reduce dependency on indirect tax especially on VAT.
  • To stop buying of anonymous assets and in this regard other country’s law can be followed who are successful.
  • (i) Canceling Government Servant (Conduct) Act 2002 and reverting to the 1979 Act, and (ii) Canceling Government Servant (Discipline and Appeal) Act 2018 and reverting to the 1985 Act. Where it was mandatory to submit wealth statement by the government officials every year and provision of dismissal or separation from service if corruption is proved.

Download the position paper [English] [Bangla]

By: Md. Ahsanul Karim, COAST Foundation/EquityBD, Dt: 29-June 2024

Stopping 2% Black Money and Capital Flight may Finance another Padma Bridge

By
equitybd
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CSOs Demands for Public Expenditure Review Commission

Dhaka, 29 June 2024: CSOs in a press conference today in Dhaka demanded a Public Expenditure Review Commission to stop unbearable corruption. They also said, the yearly income tax evasion is nearly $25 billion which could increase four times the per capita health allocation.

The press conference today is held at the Economic Reporters’ Forum auditorium in Dhaka jointly arranged by EquityBD and fellow organisations, i.e., Bangladesh Krishok Federation, CSRL, NDF, Sundarban Surokkha Andolon, Trinomul Unnayan Sangstha, and Water Keepers Bangladesh. The Chief Moderator of EquityBD, Mr Rezaul Karim Chowdhury moderated the press conference where Md. Ahsanul Karim Babor, Director of COAST Foundation presented the Keynote. Mr. Iqbal Faruk of Water Keepers Bangladesh, ASM Badrul Alam of Bangladesh Kriskok Foundation, Mir Mohammad Ali, Associate Professor of Shere-Bangla Agricultural University, Ibnul Syed Rana of NDF, and Mizanur Rahman of Economic Reporters’ Form spoke in the press conference.

In the keynote, Md. Ahsanul Karim raised some demands including: (1) A Public Expenditure Review Commission must be formed to stop corruption, (2) an Inter-country Bank Transparency Agreement must be launched to stop the capital flight and black money, the two major concerns of Bangladesh, (3) Citizens having dual nationality must submit their asset and bank statement every year, (4) Instead of reducing subsidy forced by the lenders the government must stop the unnecessary and irrational public expenditure.

While moderating the session, Mr Rezaul Karim Chowdhury of EquityBD said, if the government could stop income tax evasion, which is nearly $25 billion, we would be able to double the social safety net program for the poor or increase the per capita health allocation 4 times. He urged the reinstallation of the law on annual wealth statements by public servants and capital punishment for their corruption.

ASM Badrul Alam of Bangladesh Krishok Federation said, that the IFM who lent Bangladesh 4.7 billion dollars recently, forced the government to stop the electricity subsidy. But they didn’t prescribe to stop the unnecessary and irrational public expenditure.

Mir Mohammad Ali, Assistant  Professor of Sher-E-Bangla Agricultural University said that the government must not reduce the subsidy as those are spent for people’s well-being. Rather, the government should invest in life-saving services like water, health, and electricity to increase the quality of life.

Mizanur Rahman of the Economic Reporters’ Forum said that those who were assigned to stop corruption and black money left the country with a lot of assets and money. Ibnul Syed Rana of NDF said, now is the time to raise our voice and stop the capital flight.

Please download the related paper [Bangla Press] [English Press] [Position paper Bangla] [Position paper English] [Presentation]

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Open Organization is Fundamental for Participation Revolution

By
equitybd
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The workshop on Participation Revolution

I was keen to participate in the workshop, ‘Participation Revolution’ organised by CHS Alliance and ICVA, from 25 to 27th June 2024, in Bangkok, as I thought I would learn and share different definitions, initiatives and experiences. We found a lot of questions from our local friends about why it is called “Participation Revolution”. We explained that the term is used in the Grand Bargain (GB) Commitments, one of the 52 commitments. The Grand Bargain commitment is the outcome of the World Humanitarian Summit (2014 to 2016), is finally declared in Istanbul in May 2016.

‘Participation Revolution’

We all understand what the term Participation means. It is an inseparable right of human beings in our sphere where human rights and democracy are part of our life, we believe. However, the coupled words ‘Participation Revolution’ bring a different meaning to us, i.e., participation must flourish in a limitless, boundaryless way. GB has placed this term in respect of humanitarian response.

Superiority complex

We believe we must make our organisation an “Open Organization” before embarking on the Participation Revolution. In our experience, the majority of executives tend to make their organisations hierarchical. Their door is open only for the next position, along the line management, and closed for cross-communication. We have seen that one of our friends believes that he is the boss and he knows everything. He doesn’t need to accept knowledge from his colleagues (in his so-called view, from the subordinates). In his definition, superiority means superiority of knowledge.

Who is Intelligent?

I always remember a quote from a rural elderly person who used to visit my family in Charfassion, a remote island in Bangladesh. He used to mention a rural saying, “He who is intelligent accepts another’s advice.” What he meant by that is he who thinks he is too clever to take advice from others is a fool. Albert Einstein said, “The measure of intelligence is the ability to change.”

In my role as an executive, I love to accept opinions, and advice from my colleagues, whether they are superiors or subordinates. I treat all of them just as my colleagues.

Accepting defeat

I always say to my colleagues that we must have a mindset about opinions that sometimes we need to accept defeat by our subordinate colleagues. You will be a real participation revolutionary in your organisation if you give a clear signal that you have no problem accepting superior or advanced ideas from your subordinate colleagues even if it seems like a defeat. It is the case of diminishing ego.

Meeting system for participation and direct interaction

We have introduced a meeting system in our organization to ensure the representation of all levels of staff making space for everyone’s participation through direct interaction with superiors, especially with executives. The forum is not only a body of improvisation of plan implementation, but a space of interaction with executives. The moderation of the meeting is critical as it must be motivational and experience sharing. The individual professionals need to make decisions, and that’s why the meeting encourages the executives to make only recommendations unless it is a meeting of the board of directors. Usually, the board of directors makes consensus decisions.

Cross Communication but Line Decision

We publish the annual diary where the email IDs and phone numbers of all staff are printed so that anyone can communicate with anyone in the organization. The diary also has some pages where the brief version of the core policies is printed for learning and transparency. All of the member participants of the interventions (especially of the microfinance program) have passbooks where the phone numbers of the executives are printed so that they can directly communicate across levels if necessary. We encourage them to call anyone at any time.
We have a policy that anyone can write anything to anyone, and no one but the recipient is allowed to open the letter. However, the correspondence and decisions go through the line management. it means we uphold the system and train colleagues on solving the problems.

Complaint Response Mechanism

We have a complaint response mechanism policy where anyone can submit complaints anonymously. We created visibility of the mechanism and made it easily understandable to the affected population, and member participants. We made it easily accessible to anyone ensuring publishing them in both Bangla and English. The hotline number and other ways of complaint submission are printed on stickers on the office vehicles, on the back leaf of the business cards, in the websites, and on office doors.

We have a complaint response committee at the principal office that arranges monthly meetings to discuss the trend of the complaints and review the ways of mitigation. Reports on the trend of complaints and mitigation process are discussed at the governing board and Executives Committee meetings.

Whistle-Blowing Policy and Protection of the Whistle-Blower

We have a whistle-blowing policy under which any staff or any external or internal stakeholder can flag any misconduct of staff or any wrong intervention to any level, especially to the board or executive level. There is a specific clause in the policy to give special protection to the whistle-blower. The policy is printed in the staff diary and available on websites both in English and Bangla.

Complaint phone number on business card

We promote a sense of accountability among our staff members. Each staff has a business card, where on the back leaf of the card, phone numbers and email addresses for receiving complaints are printed. There are separate channels for male and female complainers for privacy and comfort. Printing the complaint channels on the business card gives our colleagues a feeling of accountability towards the people we serve. These are some of the approaches so far we have invented to make our organization open and transparent. We feel these are the primary stages of facilitating the Participation Revolution and accountability to the affected population. We believe that people are affected, or humanitarian crises happen as a result of denials of their rights on multiple levels.

Download the details report click here

COAST Foundation
House 13, 1st Floor, Metro Melody, Road 2
Shyamoli, Dhaka 1207, Bangladesh.
e: info@coastbd.net

Independent Climate Finance is Inevitable for Sustainable Development

By
equitybd
-

Draft Position Paper, Equity BD, 13 June 2024

National Budget -2024-25

Independent Climate Finance is Inevitable for Sustainable Development

  1. Proposed National Budget 2024-25

Amid a multi-faceted economic crisis including inflation, reserves, revenue rates, dollar crisis and financial sector reforms, the National Parliament of Bangladesh proposed a budget of Tk 797,000 crore for the fiscal year 2024-25 on June 6. Which is 14.2 % of Gross Domestic Product (GDP). The total revenue target in the proposed budget has been set at 5 lakh 41 thousand crores. The Annual Development Program (ADP) in the proposed budget has been estimated at Tk 2 lakh 65 thousand crores. GDP growth for FY24-25 is estimated at 6.75%. If this is achieved, the size of the GDP will be Tk 55 lakh 28 thousand 65 crores. In the proposed budget, the climate allocation of 25 ministries related to climate is 42 thousand 2 hundred crores which are 10.09% of the total allocation, and 0.76 % of GDP.

  1. Traditional budgeting

GDP will increase and the size of the budget will also increase, that is the conventional system of economics. According to economic analysts, Bangladesh has graduated from a least-developed country to a middle-income country, but there has been no change in the government income-expenditure structure or its nature. Generally, the budget size in middle-income or developing countries is above 20 % of GDP. Somewhere 25 or 30 % and the ratio of taxes is 15-20 % of GDP. But Bangladesh is far behind in these two places. Despite the increase in GDP size, the proposed budget is only 14.2 % of GDP and the tax-GDP ratio is still below 10 per cent. Despite the increase in the size of the GDP, the proposed budget is only 14.2% of the GDP and the tax-GDP ratio is still below 10%. Analysts believe that corporate tax exemptions, evasion, lack of collection efficiency, and non-coverage of potential taxpayers, etc., are the main reasons for the non-increasing tax-GDP ratio.

  1. The debt trap in the name of climate finance

Developed countries are seeking to trap LDCs and climate-vulnerable countries in debt in the name of climate finance without paying the promised compensation. Moving away from grant-based activities, they are increasingly turning to profit-based change is making affected countries more debt-dependent. Only 5% of climate funding received so far is through grants and the rest is through loans or co-financing. A 50:50 allocation of funding to adaptation and mitigation is claimed but only 20% is allocated to the adaptation sector. International financial institutions are gradually registering to receive and lend money from the Green Climate Fund.

Figure of climate allocation in last 5 years

national budget [Crore BDT]
Fiscal year GDP at current Prices Total National Budget Total climate budget Climate allocation as % of GDP
2020-21 35,30,185 568,000 24,075.69 0.68%
2021-22 39,71,716 603,681 28,010.13 0.71%
2022-23 44,90,842 678,064 32,408.90 0.72%
2023-24 50,48,027 761,785 37,051.94 0.73%
2024-25 55,97,414 797,000 42,206.89 0.75%
Source: Climate Finance Budget Report on National Budget and Sustainable Development from FY 2021-22 to 24-25 and Bangladesh Bureau of Statistics report

According to TIB’s recent study, a total of $1,189.5 million has been approved from national & international sources against Bangladesh’s mid-term needs up to 2025 for addressing climate change, which is only 9.9% of the required amount. The report also states that since most of the adaptation projects are grant-based, GCF is more interested in approving debt-based mitigation projects. Bangladesh received $256.4 million (76.9%) for mitigation projects, but only $76.8 million (23.1%) for adaptation projects. Of this, GCF has provided 75% of loans and 25% of grants to national institutions in Bangladesh. In addition, GCF provided 97% of loans to national institutions in Bangladesh through co-financing and 3% in-kind.

  1. Government’s climate planning & investment needs

The Climate Fiscal Framework was developed in 2014 and updated in 2020 to make public financial management Climate-sensitive. Investment needs have been identified in the implementation of significant policies adopted by the government such as BCCSAP-2009, Nationally Determined Contribution [NDC-2021], Delta Plan-2100, National Adaptation Plan [NAP]-2022 and other policies.

A. Bangladesh Climate Change Strategy and Action Plan (BCCSAP 2009) According to BCCSAP’s financial projections, the government has committed to allocate BDT. 8,600 crores yearly to the adaptation sector alone.

B. Bangladesh Delta Plan-2100: The short-term phase of BDP-2100 implementation identified an investment requirement of $38 billion by 2030, requiring $5.42 billion annually. According to the government’s plan, implementing the delta plan would require 2.5% of GDP.

C. National Adaptation Plan [NAP]-2023-2050: The adaptation plan identifies 113 [90 high priority and 23 mid-priorities] initiatives in 8 sectors. An estimated $230 billion has been identified to implement the 113 initiatives outlined in the 27-year implementable adaptation plan. Accordingly, an annual allocation of $8.5 billion will be required.

D. Nationally Determined Contribution [NDC] 2021-2030: Bangladesh has pledged to reduce carbon emissions by 21.85 % by 2030 through its capabilities and with the cooperation of the developed countries. The estimated expenditure on unconditional investment is $32.26 billion, and the conditional investment amounts to about $140.97 billion. Accordingly, every year the government will need to allocate $3.58 [BDT. 30 thousand 788 crores] for unconditional investment and $15.66 [BDT. 1 lakh 34 thousand 6 hundred 76 crores] for conditional investment.

5. Massive gap in climate finance allocation in the budget compared to the investment demand

Funding for the implementation of policies and strategies adopted by the government to deal with climate impacts is one of the most discussed issues at the moment. In this year’s proposed budget, the climate allocation of 25 ministries related to climate has been given 42 thousand 2 hundred crores which is 10.09 per cent of total allocation.

Climate allocations of some notable ministries in budget 24-25 [Crore]
Ministries Allocation

24-25

 Climate related % Allocation

23-24 Revised

 Climate related %
Environment Forests & climate change 971.10 45.58 1,028.56 49.66
Water Resource 4,172.05 37.27 5,449.90 37.32
Agriculture 10,295.41 37.83 12,661.23 38.04
Fisheries & Livestock 1,145.59 26.71 1,283.93 32.88
Disaster Management 2,547.03 23.15 2,285.20 21.58
electricity 2,214.88 7.58 1,701.57 6.26
Energy 127.48 11.73 60.13 5.26

According to experts, the annual allocation of climate finance in the traditional way is insufficient to tackle current and future risks. Where a minimum of 3% or more of GDP is required to be allocated to climate finance each year, governments are allocating less than 1%. According to government sources, Bangladesh will need $534 billion to combat climate change by 2050, which is $19.7 billion annually and the government has allocated $3.60 billion. Considering that, the big question in the position of the government is how much climate-related issues have been prioritized in this year’s budget.

  1. Climate vulnerability is one of the major obstacles to sustainable economic development
    A. Increasing Loss & Damage: Based on the World Bank’s 2022 Country Climate and Development Report (CCDR), the IMF indicated that Bangladesh’s annual average damage due to tropical cyclones alone has already reached $1 billion. According to WMO data, climate-related natural disasters cost Bangladesh about $11.3 billion in 2021, which is about 2.47% of its GDP in 2021-2022. According to the World Bank’s “Country Climate and Development” report, GDP can fall by up to 9% compared to the baseline in the face of severe flooding.
    B. Coastal Areas are Battered by Cyclone Remal, Damaged Embankment: According to the information of the Ministry of Disaster Management and Relief, about 4.6 million people of 119 sub-districts in 19 coastal districts have been affected by Cyclone Remal. 1 lakh 33 thousand 528 houses were partially destroyed and 40 thousand 338 were destroyed. Around 111 km of embankments in the coastal districts of Khulna, Bagerhat, Barisal, Bhola, Patuakhali, and Barguna have been severely damaged, of which 61 km in the Khulna division and 50 km in Barisal division have been damaged, resulting in millions of people living under water. According to the calculations of the Ministry of Disaster Management, the amount of financial loss due to Remal is more than BDT. 6 thousand 880 crores. Locals claim if there was a sustainable embankment, there would not have been so much damage.
    C. Growing Internal Climate Displacement Crisis: Climate displacement phenomena will become more pronounced in the coming years. According to IDMC research, 1 in 7 people in Bangladesh will be displaced by 2050 due to climate change. According to the recently published IOM World Migration Report-2024, more than 1.5 million people were displaced in Bangladesh due to natural disasters in 2022 alone. According to the World Bank report, 400,000 people leave villages for cities every year, approximately 2,000 people migrate to Dhaka [Capital city] every day for livelihood and 70% of them are climate-displaced. The number of internally displaced people is expected to become more pronounced in the coming years due to the scale & severity of natural disasters such as floods, cyclones, salinity, river erosion, landslides & droughts.
  2. Our recommendations to governments on climate finance in the national budget

At least 03% of GDP should be allocated to the national budget as per the plan adopted for the protection of climate-vulnerable populations.

The amount of financial support expected from the developed countries to implement the adopted policies and plans is very less considering the global context. It is undeniable that building a sustainable climate-resilient Bangladesh requires increasing priority investments in disaster resilience and protecting people’s lives and livelihoods. At least 03 per cent of GDP should be allocated to climate finance in the national budget instead of relying on foreign debt to implement the plans adopted to protect the vulnerable population of the country.

The National Action Plan adopted to implement the National Strategy on the Management of Disaster and Climate-Induced Internal Displacement [NSMDCIID] should be linked to the government’s climate fiscal framework and allocated on a priority basis.

The Ministry of Disaster Management and Relief drafted a National Strategy Paper on Internal Displacement Management in 2019 and adopted a 20-year inclusive and rights-based National Action Plan for 2022-2042 to implement the strategy. Even after 5 years, the government’s initiative to implement the action plan is still not clear. It is not enough to formulate an action plan to deal with the difficult crisis of future displacement, it is important to take the initiative to implement it now.

To build a climate-resilient Bangladesh, priority-based investment in displacement mitigation should be increased, and the government should pay extra attention here. In particular, the strategy framework should prioritize prevention measures and annual allocations for long- and short-term plans to address the displacement crisis and should be integrated into the government’s climate finance financial framework.

For the construction of embankment for coastal protection, apart from the traditional allocation, adequate allocation based on local needs should be ensured.

The recent Cyclone Remal has once again proved how weak the coastal protection infrastructure, especially the embankment, is and not at all capable of dealing with disasters. According to gov’t and private data, about 70-80% of embankments in coastal areas are inadequate to resist floods and tidal waters. Because the height of these dams is already very low standard repairs and maintenance are not done regularly. Hence the need for sustainable dams to counter the negative impacts of climate change [sea level rise cyclones, tides]

At present the extent of embankments and polders in the coastal area is about 5,754 km: (as per the official). In addition, millions of people live in different detached islands where there are no dams. In all, about 6,500 km of dams are currently required along the coast, and if all the dams are to be constructed sustainably within the next 10 years, experts estimate that about Tk 130,000 crore is required. In view of this BDT. 10-12 thousand crores should be allocated separately every year out of the traditional allocation and the ownership of the embankment should be shifted to the local community.

Download Position Paper click here

Secretariat: EquityBD [COAST Foundation], Address: Metro Melody, House 13, Road 02, Shyamoli, Dhaka-1207. e: info@equitybd.net, www.equitybd.net

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