Govt to track project implementation through digital system, impose fines for delays

The BNP government is all set to roll out a digital system across all departments to monitor the implementation of national budgets and development projects, and penalise concerned officials for potential delays.

Finance Minister Amir Khosru Mahmud Chowdhury announced the plans undertaken in this regard at a pre-budget discussion session organised by the Economic Reporters Forum (ERF) on Tuesday.

The government has come up with this new digital scheme after holding elaborate discussions to try to identify the reasons behind the consistent delays in implementing budgets and projects in the country.

The minister also said that project proposals will be reviewed based on four criteria: value for money, return on investment, job creation and environmental impact. Proposals failing to meet these criteria will be dropped, he added.

The government is also working to revitalise private investment and business spending. To this end, authorities are working to deregulate the business climate as much as possible. The government will also launch an “all-in-one” digital system for approving all the regulatory procedures related to business operations.

The system will operate under a fixed timeframe, and if a concerned government department fails to give the required greenlight within the deadline, the approval will be given automatically.

Restoring confidence in the financial sector is among the key priorities the government has fixed for reviving the business environment. The government has already held talks with the World Bank’s International Finance Corporation and other global agencies for shoring up capital for the bank and business sectors.

JP Morgan, among others, has shown interest in joining the efforts, the minister added.

He further said that the securities regulator will be reconstituted within the next two weeks, and the new leadership will be selected based on expertise and experience.

The BNP government has inherited a weak economy buffeted by multiple crisis, and is attempting to heal the wounds, Amir Khosru said.

A large national budget for the upcoming fiscal year, which starts 1 July, is necessary to this end, he noted.

At the event, Centre for Police Dialogue (CPD) Executive Director Fahmida Khatun criticised the approach saying that it is contradictory to run a large fiscal budget while hiking interest rates and curbing the supply of cash.

While the increased interest rates appear aimed at taming inflation, the government should rather focus on boosting investment in agriculture, food production and logistics, Fahmida noted.

Shawkat Aziz Russell, president of the Bangladesh Textile Mills Association, sought the launch of a low-interest-rate financing scheme to support capital spending by businesses.