Tuesday, 5 July, 2022

Prof Salim terms budget growth-oriented

Economist Prof Salim Uddin has described the proposed national budget as growth-oriented, saying that taming inflation will be one of the major challenges for the next fiscal year.

“The budget contains visionary fiscal measures amid the global economic setback during the Covid-19 recovery. There should be a focus on implementation of the fiscal plan for sustainable economic growth,” Prof Salim of Chittagong University, told the Daily Sun.

Bangladesh has set a 7.5 percent GDP growth target for the new fiscal year 2022-23 when the Ukraine war has threatened to plunge the global economy into a fresh crisis.

Keeping this in mind, the government has taken courageous fiscal measures to contain inflation below 5.6 percent amid the global economic setback.

Fellow Chartered Accountant Dr Salim suggested that the government should utilise limited resources of the country to help the economy flourish by overcoming all challenges.

 “We should also focus on taming inflation and reducing import dependency for sustainable economic growth,” he said.

The government on Thursday rolled out a Tk 6.78 trillion spending plan, equivalent to 15.23 percent of the national GDP and 14.24 percent higher than the revised outlay for FY22.

“The government was supposed to increase the budget size by 20 percent year-on-year. According to the eighth five-year plan, the budget size should have been Tk 7.92 trillion. However, the spending has been cut in view of the present context of the global economy,” Dr Salim said.

Dr Salim is also leading the Islami Bank Bangladesh as the chairman of the bank’s executive committee.

The noted economist finds the task of managing Tk 2.45 trillion budget deficit is challenging for the government with increasing trend of borrowing from local banks.

“Bank borrowing may create adverse impact on credit flow to the private sector and inflationary pressure on economy as well,” he added.

Dr Salim, also Chairman of Bangladesh House Building Finance Corporation (BHFC), urged the government to ensure 40 percent implementation of the proposed budget within first six months to achieve the lofty goals.