Eminent economist Dr. Wahiduddin Mahmud criticized the proposed budget today calling it a "sacrificial lamb" due to its lack of flexibility in addressing critical economic challenges.

He highlighted a multitude of issues plaguing the economy, including internal inflation, revenue shortfalls, stagnant exports and remittances, disorder in financial sectors, rampant corruption, and mounting debt pressures.

Dr Wahiuddin emphasized the fragility of the overall economy, attributing the budget's limitations to low revenue collection.

He said this has necessitated a reduction in spending, impacting social security, education, health, and development initiatives and warned that the deficit would be even larger if inflation and foreign exchange were factored in.

Moreover, Dr. Wahiuddin expressed concern about the significant financial burden of subsidies and capacity charges in the power sector. He pointed out the “reliance on bank loans to finance the budget deficit” and raised concerns about “potential money printing,” which he deemed a “dangerous course of action.”

Dr. Wahiduddin also criticized the estimated 9% credit growth in the private sector as “unrealistic,” citing the “continuous rise in defaulted loans and limited capacity for new loans.”

He emphasized that the global economic crisis wasn't the sole issue and warned of a potential debt trap due to pre-existing domestic problems.

He particularly highlighted the “persistently low revenue collection rate” as a “major weakness in the economy,” which has been neglected despite the “increasing reliance on domestic and foreign borrowing.”

The proposed budget's dependence on loans to cover the deficit further exacerbates this concern, raising the alarm of a debt trap, he added..