Staff Reporter :The World Bank (WB) on Wednesday said implementation of the proposed budget with quality outcome would be a big challege for the government considering prevailing macroeconomic context, fiscal framework, budgetary measures and reforms.”The budget intends to be more self-reliant, infrastructure friendly and inclusive, but it lacks specific guidelines on its implementation,” the global lender said this in an analyses on the proposed budget for the fiscal 2016-17.It added the budget is moderately expansionary but not sustainable. The main challenge is ensuring its implementation.”The size of the budget does not matter rather the key issue is its implementation with quality outcomes,” Dr Zahid Hussain, lead economist, WB’s Bangladesh Country office, told journalists while assessing the proposed budget at a press briefing in the city yesterday. He added the expansionary fiscal stance of the budget is appropriate given that growth is subject to significant downslide risks, but its effectiveness will depend on the quality and quantity of actual spending.The ambitious projected spending would largely depend on mobilising concessional external financing and strengthening the revenue earning efforts, he said.He also said the government would face an uphill task to mobilize necessary resources along with achieving the revenue target and implementation of Annual Development Programme (ADP).”The government has rightly emphasised an expansion in public spending. At the same time, it must focus on strengthening its ADP implementation capacity,” said Dr Zahid.”Boosting investment would be another challenge in the next budget. Political uncertainty is a big problem to attract investment. Now, there is stability in the country’s political arena but uncertainty still remains hindering free flow of private investment,” said Dr Zahid.He, however, said investment could be boosted by solving infrastructural bottleneck and energy crisis.Observing various positives sides of the proposed budget, the WB’s lead economist said if these budgetary measures are implemented properly, it can help contribute to economic growth, build human capital and infrastructure in Bangladesh. WB Country Director Qimiao Fan also spoke on the occasion.
