Some economists said on Thursday the proposed national budget for 2020-21 fiscal year will be almost impossible to implement as it is ‘highly ambitious and devoid of objectivity’.
In their instant reaction over the budget proposed in parliament earlier in the afternoon, they also said there is no specific framework to deal with the coronavirus risk.
Dr AB Mirza Azizul Islam, a former finance adviser to caretaker government, said the proposed budget will not be possible to implement this time.
“There is no clear indication on how to achieve 8.2 per cent GDP (gross domestic product) growth,” he said, adding the World Bank had earlier made a 1 per cent growth forecast for Bangladesh in 2021-21 FY.
“…this growth is the main basis of a budget. It will not be achievable if the revenue collection target fails and it will ultimately increase the level of budget deficit,” the former adviser said.
The economist also pointed that if the government depends on bank loans to cover the deficit, the flow of private sector credit, which has been declining for a long time, will dip further hampering investment and employment.
