Photo: Messenger
Bangladesh has experienced giant budgets during the convectional economic system but in the time new and different thinker, experts expect a dynamic, pragmatic reform-based budget for the fiscal year 2025-2026 which is highly challenged for the high inflation in economic slowdown.
Bangladesh is in the multifaced crisis including the political turmoil. The interim government is in different types of economic and political challenges. It has to control the inflation to calm the people and most important, it has to hold the national election.
Country's renowned economist Dr Zahid Hussain who was affiliated with the World Bank Dhaka office told the Daily Messenger “Bangladesh has got a chance to change. Earlier, we have seen unrealistic big budget which were out of implementation. So, now we need a budget that will be reform based so that budget can relief people’s economic pressure.”
He said the budget of the next fiscal could be an economic 'turning point' where everyone would be able to know what sort of policies would be undertaken. The eminent economist said, "I think we need to wait for the upcoming budget to come to a final conclusion whether they are inclined to carry out reform initiatives or not.
For attracting more investments and speeding up the GDP growth, he said the next budget will have to come up with credible fiscal, financial and structural policy reforms. They will have to deliver some quick wins.
"In case of containing inflation, I should say, the numbers do not show any convincing decline, and hence there is no room for monetary easing," he said to BSS in an interview.
Mutafizur Rahman distinguished fellow at the Centre for Policy Dialogue (CPD) said, The Professor Muhammad Yunus-led interim government has to undertake a number of economic reform initiatives for revitalising the struggling national economy and use the reform plans as the basis for drafting the next fiscal budget.
The government has to adopt a three-year budget framework, with short-term reforms targeted in the upcoming 2025-26 fiscal year budget, and middle-term reforms targeted in next year budgets.
The government has to give its highest priority on boosting investment, and through investment and other means rein in surging consumer inflation at the earliest possible time. Through investment and oversight supply chains have to be bolstered and made transparent. This would reduce the supply-demand gap, and contribute to product price falls.
Professor Anu Muhammad said, “The students of the country have achieved a new era. So, the government should present a really reform based budget that will be able to make the economy stable.”
He said, people of the county are suffering for high inflation but the government is increasing the utility and service prices. So, leaving the price hike policy, the government should adopt a pro-people budget. “We don’t want fluffy budget,” he added.
However, Finance Advisor Dr. Salehuddin Ahmed said that the next budget will be implementable as the people will not have to bear the additional burden of taxes. The monetary and fiscal policies will be coordinated through the next budget.
In response to a question, he said that there may be criticism about the budget, but it is not possible to please everyone.
However, this budgetary revision will depend on several factors, including conditions that the International Monetary Fund (IMF) may set for a fresh loan, the availability of budgetary support and the government's ability to generate revenue through tax collections.
A Fiscal Coordination Council held a meeting chaired by the finance adviser on Monday and discussed the reduction, according to officials from the Ministry of Finance. In June, the government had passed a national budget of Tk 797,000 crore for fiscal year 2024-25, which included an allocation of Tk 265,000 crore for the ADP.
Messenger/JRTarek
