Spending cut, investment must for economy: Farashuddin
He suggests Jan-Dec fiscal to have better outcomes
Dhaka, May 27 (UNB) – Slashing public expenditure, improvement in investment flow, expediting annual development programme (ADP) implementation and strengthening the central bank’s monitoring are a must to have a better economy, said a former central bank governor.
“The government hasn’t been able to cut its expenditure. The investment flow needs to be increased in the productive sector cutting public expenditure,” M Farashuddin Ahmed told a seminar at the conference hall of Bangladesh Bank on Sunday.
He said initiatives are needed to introduce January-December fiscal year to have better outcomes regarding development process as rainfalls destroy huge resources during the May-June period. “The government isn’t paying heed to it.”
Ahmed also suggested formation of a long-term development fund through a syndication of commercial banks to ensure lending for investment to expedite industrialisation.
Bangladesh Training Academy (BBTA) arranged the seminar titled ‘Current State of the Economy and Way Forward’ held with BB governor Dr Atiur Rahman in the chair.
The former central bank governor also said steps are urgently needed to stop under-invoicing as a section of importers are evading duty through this tactic during the import of various products, causing a huge revenue loss to the state coffer.
On the widening gap between the rich and the poor, he said this gap will have to be minimised. “Five percent of the total population or 80 lakh people are the owners of the country’s 40 percent income and resources…they’ve a role to play in this regard.”
He favoured changes in the current monetary policy and said the contractionary monetary policy would not help that much for a longer period.
Farashuddin also criticised the central bank for its weak monitoring over the fund transfer of Destiny Group.
About new banks, he said giving licenses for launching new banks is economically justified. “We shouldn’t calculate the number of banks rather we should look into the number of bank branches. We need more bank branches in rural areas.”
The former central bank head also suggested the use of coal in electricity generation. “If we want to see desired GDP growth, there’s no alternative to infrastructure development which is a must for industrialisation.”
BB governor Dr Atiur described the improvement achieved in the macroeconomic sector in the recent years.
He, however, observed a slow growth in investment and hoped that the investment flow would get a momentum in the days to come.
“The government hasn’t been able to cut its expenditure. The investment flow needs to be increased in the productive sector cutting public expenditure,” M Farashuddin Ahmed told a seminar at the conference hall of Bangladesh Bank on Sunday.
He said initiatives are needed to introduce January-December fiscal year to have better outcomes regarding development process as rainfalls destroy huge resources during the May-June period. “The government isn’t paying heed to it.”
Ahmed also suggested formation of a long-term development fund through a syndication of commercial banks to ensure lending for investment to expedite industrialisation.
Bangladesh Training Academy (BBTA) arranged the seminar titled ‘Current State of the Economy and Way Forward’ held with BB governor Dr Atiur Rahman in the chair.
The former central bank governor also said steps are urgently needed to stop under-invoicing as a section of importers are evading duty through this tactic during the import of various products, causing a huge revenue loss to the state coffer.
On the widening gap between the rich and the poor, he said this gap will have to be minimised. “Five percent of the total population or 80 lakh people are the owners of the country’s 40 percent income and resources…they’ve a role to play in this regard.”
He favoured changes in the current monetary policy and said the contractionary monetary policy would not help that much for a longer period.
Farashuddin also criticised the central bank for its weak monitoring over the fund transfer of Destiny Group.
About new banks, he said giving licenses for launching new banks is economically justified. “We shouldn’t calculate the number of banks rather we should look into the number of bank branches. We need more bank branches in rural areas.”
The former central bank head also suggested the use of coal in electricity generation. “If we want to see desired GDP growth, there’s no alternative to infrastructure development which is a must for industrialisation.”
BB governor Dr Atiur described the improvement achieved in the macroeconomic sector in the recent years.
He, however, observed a slow growth in investment and hoped that the investment flow would get a momentum in the days to come.
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