Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 1076 Mon. June 11, 2007  
   
Business


Price spiral casts shadow over rise in poor allowance: Shamunnay


The pace of price spiral has cast shadow over the government's generous proposal to increase allowances for the poor in the budget 2007-08, says an analysis by a non-government research body.

The research organisation, Shamunnay, found that under the budgetary allocation eligible poor would now get Tk 7.23 per day against his or her minimum requirement of about Tk 30 for half-kilo coarse rice, pulses and some vegetables for a square meal.

The budget proposed to increase the allowance for disabled, destitute women and extreme poor elderly people by only 10 percent or Tk 20, but Shamunnay said the price of coarse rice rose 25-30 percent in the last one year.

"How their days will go at only Tk 7.23... it should be looked at," economist Dr Atiur Rahman, who is Shamunnay chairman, told a post-budget press conference at Shamunnay conference room yesterday.

"We think, the allowances should have been double (Tk 400)," he said, with a note of concern for the poor due to rising prices.

Dr Atiur said an increase of Tk 20 in no way would help poor smoothen their livelihood with the present trend of rising prices.

He feared the huge budget might stimulate overall demand, eventually resulting in increase of prices in the days ahead.

He pointed out four measures announced in the budget to curb inflation, but apprehended that still it would be difficult to stabilise the market.

The economist said the inflationary pressure on the middle class would be mitigated to some extent due to raising the income tax exemption limit.