Economic stability must be the focus of budget: economists to finance minister 

The upcoming national budget for fiscal year 2024-25 should focus on macroeconomic stability, reducing default loans and expenditure in mega projects, according to economists. 

The economists came up with the recommendations in a pre-budget meeting at the Padma Guest House in Dhaka yesterday. 

Salehuddin Ahmed, former governor of Bangladesh Bank, said macroeconomic stability is needed to tame inflation as prioritising higher GDP growth alone won't ensure good distribution and stop inequality. 

"If necessary, the government can reduce expenditure in mega projects, but health and education spending should increase, along with direct tax collection. Dependency on indirect tax needs to be reduced as it impacts the poor too." 

He further said they advised the central bank not to print money and recommended a market-based interest rate system to reduce inflation. 

Finance Minister Abul Hassan Mahmood Ali said the economy has some problems but is on track to solve them.

"The next budget will emphasise boosting jobs, and increasing the foreign exchange reserves."

Rehman Sobhan, chairman of the Centre for Policy Dialogue (CPD), Mustafizur Rahman, a distinguished fellow of the CPD, and Binayak Sen, director general at the Bangladesh Institute of Development Studies, were also present at the event.