Income inequality hampers development

Income inequality has been increasing at an unprecedented rate due to the further increment of wealth concentration and the increase in the number of ultra-rich people in the country.

According to a report of Wealth X, Bangladesh was positioned at the top three of a list that projected a growth of 11.4 percent for people with high net worth from 2018 to 2023. Though Bangladesh progressed a lot in reducing extreme poverty, the widening of income inequality among the rich and poor lately has posed a major challenge in establishing an inclusive society for all.

Economists stipulated that subsidies, tax exemptions, imprudent macroeconomic policies, frequent loan scheduling of habitual loan defaulters, and government’s weak policymaking are not only responsible for fuelling income inequality in the country, but are also major barriers to sustainable development. The weak fiscal framework where the burden of taxation falls on the shoulder of poor people further deepens economic and social disparities.

Experts and others suggest that higher budgetary allocation to health, nutrition, vocational and polytechnic education, reforming the education system, and bringing the affluent people under the tax net might reduce income inequality in society.

Md Parvez Alam, By email