Bangladesh's economy faces a triangulation of daunting problems that threatens to upset government-targeted economic growth of 7.0 per cent in next fiscal, a think-tank forewarns as budget making continues.
Uncontrolled inflation, surging debts and erosion of financial space in the wake of economic growth deceleration are identified by the CPD as the cardinal challenges to reckon with in crafting the new budget of the new government.
And the narrowing of financial space is leading to shortage of expenditure capabilities in deserving sectors like health, education and social-safety net.
Dr Debapriya Bhattacharya, distinguished fellow of the Centre for Policy Dialogue (CPD), presented such views Sunday suggested that the government should address the concerns by way of taking into consideration recommendations of the citizen's platform.
"Next budget would determine whether the economic risks would prolong or not," he said at a pre-budget dialogue on 'New government, national budget and citizens' aspirations', organised by CPD-Citizens' Platform for SDGs, Bangladesh, at a city hotel.
Dr Bhattacharya, who heads the Citizens' Platform for SDGs, presented a keynote paper at the programme with a study finding on what cross-sections of people across the country aspiring to see in the next budget.
Executive Director of CPD Dr Fahmida Khatun delivered welcome remarks while another distinguished fellow, Prof Dr Mustafizur Rahman, gave vote of thanks.
Lawmakers, including AK Azad, former planning minister MA Mannan and former environment and forest minister Anisul Islam Mahmud, Executive Director of Mass Literacy Move and core group member of Citizens' Platform Rasheda K Chowdhury, among others, spoke on the economic challenges and priorities to be set to navigate the headwinds.
Mr Mannan, however, thinks different on the CPD-projected downtrend in GDP growth in the next financial year, now round the corner.
He feels that the optimization of bureaucracy is important to implement the major economic decisions made by the executive.
He also stresses the necessity of reviewing the budget heads for allocation, as economists suggest making the most of limited resources in the crunch time.
At the meet, stakeholders put forward three major priorities: decent employment, quality and technical education, and expansion of social-safety net.
They also laid emphasis on addressing risks of climate change, safe drinking water, allocations for child, transgender, and acid- survivors, and problems facing the urban poor.
Rasheda K Chowdhury alleged difficulties in getting the allocated funds for education and tendencies to implement any programme under project which is hardly benefitting target groups.
She suggests incentivizing primary schoolteachers to encourage them and bring all sorts of educational institutions under a registration process.
Dr Mustafizur Rahman said investment on children and labour forces usually pays off higher than any sector, which should not be considered expenditure.
He pointed out that the challenges of second generation are quality education and health services.
Dr Rahman also recommends developing institutional capacity for proper uses of resources.
Anisul Islam Mahmud said delay in taking action on banking acquisitions worsened the problem and generated 'toxic asset'.
"Tremendous capital flight has created major shock in financial and monetary sectors," the barrister told the meet.
He said small and medium businesses are bearing the brunt of interest volatility on loan, like from 9.0 per cent to 14 per cent, which affects their sustainability and capability to generate employment.
On inflation, he said "market syndication" is one of the major reasons as only five to six groups are controlling commodities' market and causing price hike despite having no shortages in supply.
AK Azad said many of the medical equipment in hospitals outside the capital remain out of order, resulting in a rush in Dhaka.
"Quality education is a must" as only 20 per cent of the jobseekers qualify at job interview in his offices.
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