The government is stepping into an economic management system which is fully based on public investment, where infrastructure comprises all outlays, Centre for Policy Dialogue (CPD) distinguish fellow Dr Debapriya Bhattacharya has said.
He said such economic management has weak relation with private investment, revenue mobilisation, currency evaluation or devaluation and other economic and trade activities.
He made the remarks while addressing a press conference on the State of the Bangladesh Economy in FY’2019-20, organised by CPD at CIRDAP Auditorium in the city on Sunday.
He attributed the execution of such policy-centric economic management to the Ministry of Finance's inability to play lead role and the non-availability of authentic data and statistics.
The current policy formulation process is done with adhoc basis and the decision is taken hastily without considering previous policy outcomes, he said.
As a result, the outcomes of the overall economic activities fail to meet expectations, he said.
CPD expressed concern over four areas of budget implementation where the government should focus immediately.
The private think tank laid emphasis on revenue mobilisation, banking sector, capital market and Balance of Payment (BoP) where the policy makers should give attention.
A paper was presented which showed the country’s revenue mobilisation was not exemplary.
It said total revenue-GDP ratio of Bangladesh was only 9.9 per cent and tax-GDP ratio 8.9 per cent in FY’19, whereas average tax GDP ratio in developing countries is 15 per cent.
The paper said revenue mobilisation also could not keep pace with the GDP growth.
The paper also said revenue shortfall, which was Tk 870 billion (provisional) in the last financial year (FY’19), is likely to increase further in the current financial year if necessary measures are not taken.
CPD distinguished fellow Prof Mustafizur Rhaman, Head of Research Dr Fahmida Khatun, Research Director Dr Khondaker Golam Moazzem, Senior Research Fellow Towfiqul Islam Khan, among others, spoke on the occasion.