The members of Bangladesh Economic Association also said government's desire for bank borrowing is now likely to grow a tendency of loan default on the government's part while such a culture already exists among a certain quarter of individuals.

The association gave an analysis on the budget for the 2006-07 fiscal at a press conference held at the National Press Club.

The economists observed that the government's planned borrowing of Tk 15,100 crore from the domestic sources to finance its overall budget deficit would also create a critical situation in a long run.

"The proposed budget reflects a narrow political and lacklustre attitude," said Abul Barkat, the BEA general secretary.

Dependence on domestic borrowing along with adjustment of fuel prices will put extra pressure on the general people, he added.

The association grilled the government for allowing whitening of black money, which, they said, will encourage corruption.

It also said the budget has overlooked some major problems the common masses are facing which include soaring price of essentials, unemployment, terrorism, corruption and power shortages.

"As there is no specific guideline to address these issues in the proposed budget, it proves that government is not worried about the crises," said the BEA general secretary.

The BEA termed budget 'as usual' and 'unrealistic' and said it has not been prepared with professionalism.

The organisation said a total of Tk 10,000 crore was allocated as 'block allocations' in previous four years of the present government. The proposed budget also kept a block allocation for the next fiscal year.

Barkat said, "But such type of allocation without any particular objectives is obviously contrary to the constitution of the republic.

Referring to the reduction in import duties on some essential items, he said it will not help reduce the soaring prices unless syndication and hoarding are stopped.

Allocation in less important sectors and reduced allocation for accelerating the pace of industrial and agricultural growth are other drawbacks of the proposed budget, the BEA said.

The apex body for economists also said that the new budget failed to highlight on how the government will bring down poverty in line with the donors-prescribed PRSP goals. "The allocation to reduce poverty seems to be a mere slogan. There is no projection when the poverty reduction goal could be achieved."

The association also criticised the government for higher and non-transparent allocation for defence sector. "It should be discussed in the parliament to ensure transparency in the allocation for defence sector," Abul Barkat said.

He further said mandatory tax amounting to Tk 5000 for the small enterprises will increase disparity while the burden of tax will hit the people hard as a large portion of revenue will be collected from VAT.

Terming the proposed budget 'as usual' Qazi Kholiquzzaman Ahmad said," As there are loopholes in the country's development vision and in administrative machinery, the proposed budget will not be able to meet the general people's demand."