Speakers at a post-budget dialogue on Saturday emphasised on full implementation of ADP (annual development programme) and political stability for achieving desired outcome.
They also suggest more attention to industrial sector, a key to growth.
Centre for Policy Dialogue, a leading think-tank, organised the dialogue on 'State of Bangladesh Economy, Analysis of the National Budget-2011-2012' at Ruposhi Bangla Hotel with CPD Trustee Board member and former finance minister M Sayeduzzaman in the chair.
Awami League presidium member Mohiuddin Khan Alamgir attended the dialogue as chief guest and former commerce minister and BNP leader Amir Khosru Mahmud Chowdhury was special guest.
Former finance adviser AB Mirza Azizul Islam, MCCI president Amjad Khan Chowdhury, Dr SK Osmani and Dr Mustafa K Mujeri participated in the dialogue as panellists.
Member of parliaments, business leaders and civil society representatives took part in the discussion where CPD executive director Mustafizur Rahman presented the summary of the CPD analysis.
The discussants expressed concern over budget deficit financing and said too much dependence on bank borrowing for deficit financing would have serious impact on private sector borrowing and it might even deepen liquidity crisis in the banking sector.
They said the government might seek alternative sources of foreign aid in the form of grant and budgetary support to reduce the pressure on domestic credit.
Mohiuddin Khan Alamgir said the expected industrial growth was a must for rapid development and encouragement should be ensured for better production.
He observed that development expenditure is gradually declining but defence expenditure is increasing. 'We need to focus on job creation and poverty alleviation.'
Alamgir said a coordinative policy would have to be taken to ensure growth thorough optimum utilisation of limited resources.
Amir Khosru Mahmud Chowdhury expressed concern over deficit financing. 'It's big issue. Where liquidity crisis is there bank borrowing by the government will definitely create problem.'
He opposed the proposed 1.5 per cent tax at source on exportable goods, saying it would bring down net profit of RMG export to 5 per cent.
Amir Khosru said there was no rescue measure for the capital market, which is very important for national economy. He expressed doubt over the increase in investment volume, which is essential for job creation and overall growth of economy.
Khosru criticised the government for depending on private sector to provide utility services. 'It'll increase benchmark of costs.'
Mirza Aziz also expressed concern over the deficit financing as the banking sector is suffering from liquidity crisis.
He said extra efforts would be needed to address the huge food subsidy. 'It'll be a big challenge to arrange the subsidy.'
Mirza Aziz, the former adviser of the previous interim government, said there was no measure for reforms of import duty. 'It is in complete mess.'
MCCI president Amjad Khan Chowdhury, BGMEA president M Shafiul Islam Mohiuddin and DCCI president Asif Ibrahim also opposed the 1.5 per cent tax at source on exportable goods and demanded review of the proposal for sector's growth.
Hasanul Haque Inu said there was no reflection of Digital Bangladesh in the proposed budget, even in the previous two budgets.
He said the government failed to control the market of essential commodities in the last two years but there was no touch stone in the budget to control the market. He said the public sector had failed to play its role in investment.
Inu said good governance and political stability were urgently needed for the development and the opposition party should sit across the table for resolving any problem.
Earlier, sharing the CPD observation, Mustafizur Rahman said the successful implementation of the budget depended on political stability and proper coordination in managing the budget.
'Conducive political environment will be necessary to ensure the desired outcome of the next budget for the coming fiscal year.
He said strengthening of institutions that deal with development praxis was crucial for better administration of development.
Lawmakers Fazlul Azim, Abdul Mannan and Akram Hossain Chowdhury also took part in the discussion.
Source : New Age
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