Inflation cut to 6.0 per cent a forlorn hope

Lowering a nearly-double-digit inflation currently afflicting Bangladesh to 6.0 per cent seems a forlorn hope as a government minister himself terms the target 'next to impossible', while prices stay stubbornly high.
Planning Minister M. A. Mannan Friday expressed his disbelief about attainment of the 6.0-percent inflation target set for the forthcoming 2023-24 fiscal year, calling it "next to impossible".
On another red-hot issue of perceived reflection of IMF loan conditionality in the country's new budget, the minister, however, said the International Monetary Fund (IMF) didn't impose any condition for Bangladesh to go by "rather what it did is recommendations".
He was speaking at Debate for Democracy-organised shadow parliament debate titled 'This year's budget is people-friendly in global perspective' at Bangladesh Film Development Corporation (FDC) in Dhaka.
"The realisation of the target for reduction in inflation to six per cent in the proposed budget is not only miraculous but also next to impossible," said the minister, in view of the long shadows of persisting local and global crises on the economic front.
About IMF recommendations, the outspoken minister said: "No one is our boss, we are our boss. IMF advised the government to improve economic situation, it did not impose any conditions."
He said the government has taken necessary steps on its own from the IMF recommendations considering the interests of the people of the country.
However, despite terming the attainment of inflation target next to impossible, he said everyone should try for getting to the goal.
"Due to the manipulation by a group of traders, the price of goods rises abnormally," said the planning minister, blaming the businesses for the inflation.
Also, he said, extortion on the road also leads to higher prices for the consumers to pay, which is not desirable at all.
Mentioning that subsidies cannot be a long-term strategy, he said the government hands out subsidies considering interest of marginalized people.
He said subsidies have been reduced in some sectors in the proposed budget as per plan of reducing overall subsidies gradually.
The senior cabinet member feels it is difficult to bring back the money smuggled abroad from the country.
"The smugglers did not smuggle money to bring back," he says, attuned to many analysts' views about the fate of the reported huge 'capital flight' to tax havens.
He made a frank admission that there are political, regional and community pressures in approving development projects that can often not be ignored.
"Due to these pressures many times project cost increases," the minister told his audience as regards criticisms about project-cost overruns.
Chairing the event, Debate for Democracy Chief Hasan Ahmed Chowdhury Kiran said if Bangladesh Bank tried to deal with the economic crisis by printing money, it would provoke price inflation.
"Inflation is also increasing due to depreciation of taka against the dollar due to deficit in foreign- currency reserves," he said.
Mr Kiran said the target of 4.0-percent investment increase in the next financial year is not realistic in the proposed budget while more than one-percent investment could not be increased in the last 15 years.
"Also, the target of revenue collection will not be achieved for a lack of good governance in tax administration and lack of capacity of the board of revenue," he said.
Kiran fulminated that "corruption is the biggest challenge in implementing the budget of a country like ours".
Debaters of Jagannath University defeated the debaters of Green University of Bangladesh in the shadow parliament. Judges in the competition were Prof Abu Mohammad Raich, Dr. SM Morshed, researcher Tahreen Tahrima Chowdhury, journalist Mainul Alam and journalist Doulat Akhter Mala.

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