GDP target not achievable:CPD

Centre for Policy Dialogue (CPD) Friday said the quality of investments, both public and private, is needed to be increased to achieve the target of 7.3 percent growth set by the proposed budget for the upcoming fiscal year. Dr Debapriya Bhattachariya, distinguished fellow of the leading private think tank commented this while presenting an analysis on National Budget at Brac Centre Inn in capital’s Mohakhali this morning. The noted economist said ensuring the desired investment to achieve the proposed GDP growth to 7.3 percent in the budget for 2014-’15 fiscal year is not possible. To achieve the growth target “private sector investment should be reached at least at 25 percent from 21 percent. That means, around Tk 75,000 crore additional amount of investment will be needed.” Which CPD said “an impossible target”. The economic value of the four percent investment is Tk 750 billion ($9.50 billion). Of the investment, 7 to 8 percent may come from public sector. But in the proposed budget it was assumed that around 21 percent investment would come from private sector, said the CPD top brass. “So, it is a matter of concern that what will be the source of the extra four percent investments. In the history of Bangladesh, this has not happened,” he said. “We fear that the double use of statistics, in one hand 1995-1996 fiscal and on the other hand 2005-2006 fiscal, will affect our various discussion,” he said. “So, we suggest all the budget discussion and calculation should be done immediately by taking 2005-2006 fiscal year as base year.” he added. “Like you the all, we also want the target be achieved. But to achieve the desired target , the most important thing is investment. Without investment no target can be achieved.” CPD questions the base year for setting target of GDP to 7.3 percent in the proposed budget for the 2014-’15 fiscal. The target of 7.3 percent growth rate has been set by selecting 2005-2006 fiscal as base year. But the other calculations have been done on the basis of 1995-1996 fiscal, he said.