BSS, Dhaka :
Two leading economists of the country, while shedding lights on the next budget for FY23, said controlling inflationary pressure is now the main challenge of the economy and in the next budget, the main economic policy of Bangladesh government should focus on controlling inflation.
While talking to BSS, a Distinguished Fellow of the Centre for Policy Dialogue (CPD) Professor Dr Mustafizur Rahman and the Research Director of the Policy Research Institute (PRI) Dr MA Razzaque also focused on keeping the inflationary pressure within the tolerance level of common people.
Finance Minister AHM Mustafa Kamal is set to place the next national budget for FY23 at the parliament on June 9.
Prof Mustafizur said people of the country are now under inflationary pressure and it should be kept at a tolerant level as much as possible.
“For this, expenditures in the social safety nets should be increased side by side the poor section of people should get protection. The government is providing poor people rice with Tk 10 per kilogram (KG) alongside cash support. Under the circumstances, such kind of food support and cash support should be increased more,” he added.
To expand the coverage of the social safety net programmes, the pressure on subsidies will increase, he said, adding: “Since the common people are now under inflationary pressure, allocations against subsidies should be increased. In doing this, the government should accept the higher budget deficits.”
Hailing the government’s move to reduce tax and VAT on the import of essential items alongside discouraging import of luxurious items to control inflation, the eminent economist noted that the central bank should continue its efforts to keep the market of foreign currency stable.
“The current level of foreign currency reserve in no way creates any apprehension. So, the selling of US dollars should continue as per the demand so that there is no crisis,” he said terming the devaluation of Tk against the US dollar as a timely move.
