The Centre for Policy Dialogue (CPD) has expressed concerns over a projected revenue shortfall of approximately Tk 75,000 crore in the current fiscal year, leading to an increase in the budget deficit. The government’s borrowing from the central bank has also raised alarm, with CPD suggesting a focus on mobilizing foreign-funded budgetary support to mitigate inflationary measures in the economy.
Impact of Revenue Shortfall and Domestic Borrowing
CPD highlights that the government’s borrowing of Tk 54,501 crore from the Bangladesh Bank until February, which reportedly increased to Tk 74,393 crore until April, will have a negative impact on the macroeconomy. The think tank argues against excessive borrowing from domestic sources, emphasizing the need to prioritize foreign-funded budgetary support to maintain economic stability and curb inflationary pressures.
Importance of Mobilizing Foreign-Funded Budgetary Support
CPD recommends that the government focuses on mobilizing foreign-funded budgetary support as an alternative to domestic borrowing. By relying on foreign funding, the government can reduce the inflationary effects caused by excessive borrowing from domestic sources. This approach would help stabilize the economy and ensure sustainable economic growth in the long run.
Inward Remittances and Trade-Based Money Laundering
CPD suggests investigating the surge of inward remittances from the USA instead of the Middle East, where a large number of Bangladeshi expatriates work. The think tank raises concerns about potential trade-based money laundering, suspecting that the sudden increase in remittances from the USA may be the result of recycling smuggled money. CPD recommends increased market monitoring and temporary reductions in duty on essential products to provide relief to the common people and reduce prices.
Export Growth Challenges and Target Shortfall
CPD highlights the challenges faced by Bangladesh in achieving export growth targets. The export growth rate is falling short of the set target, which poses significant difficulties for the economy. CPD notes that a substantial increase of 41 percent in export growth is needed in the last two months of the current fiscal year, a goal that appears highly challenging to achieve.
In summary, CPD’s periodic review of the Bangladesh Economy raises concerns about revenue shortfall, government borrowing, inflationary measures, and export growth challenges. The think tank emphasizes the importance of mobilizing foreign-funded budgetary support, investigating remittance patterns, and implementing measures to reduce prices and support the economy. Addressing these issues will be crucial for sustaining economic stability and achieving long-term growth in Bangladesh.
Frequently Asked Questions
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What are the notable contributions of distinguished fellow Professor Dr Mustafizur Rahman?
Professor Dr Mustafizur Rahman is a renowned academic and expert in his field. He has made significant contributions to research and policy development, particularly in the area of economics and trade. His work includes extensive research on various aspects of the economy, including trade policies, international relations, and development strategies. He has also served in advisory roles for government bodies, international organizations, and think tanks, providing valuable insights and recommendations based on his expertise. -
What is the area of expertise of Research Director Professor Khondaker Golam Moazzem Hossain?
Research Director Professor Khondaker Golam Moazzem Hossain specializes in the field of economic research and analysis. His expertise lies in areas such as labor market dynamics, industrial development, and policy evaluation. He has conducted extensive research on various socio-economic issues and has published numerous papers and articles on these subjects. Professor Hossain’s work has contributed to a better understanding of the labor market dynamics and has provided valuable insights for policymakers and researchers in the field of economics. -
What are the notable achievements of senior research fellow Tawfiqul Islam Khan?
Senior research fellow Tawfiqul Islam Khan has made significant contributions to research and policy analysis in his field. He has been involved in various research projects focusing on economic development, social issues, and policy recommendations. Khan’s work has provided valuable insights into the challenges and opportunities faced by the economy and society. His research findings have been widely recognized and have influenced policy decisions in various sectors. Khan’s expertise and contributions have established him as a respected figure in the field of research and policy analysis.
