Dr. Fahmida Khatun, serving as the executive director of the Centre for Policy Dialogue (CPD), cautioned against the government’s reliance on borrowing from the central bank to cover budget shortfalls, describing it as detrimental to the national economy. She expressed her concerns during a shadow parliamentary debate hosted by Debate for Democracy at the Bangladesh Film Development Corporation (FDC).
Dr. Khatun highlighted that such borrowing contributes to inflation and weakens the purchasing power of the public. She recommended that the government prioritize seeking funds from international sources over utilizing banking channels to address deficit challenges.
Looking ahead to the upcoming fiscal year 2026-27 budget, Dr. Khatun advocated for a budget that is cost-effective and includes clear policy directions. She suggested transitioning from general subsidies to a targeted system, focusing on key sectors such as agriculture, irrigation, and public transportation.
In her remarks, Dr. Khatun proposed redirecting subsidies in the power and energy sector to ensure food security instead of benefiting those who do not require assistance. She commended the government’s social safety net programs like the Family Card and Farmers’ Card but stressed the importance of transparency in beneficiary selection to prevent irregularities and corruption.
To alleviate the impact of global market volatility on citizens, Dr. Khatun recommended temporary waivers on VAT and taxes for essential imported goods. However, she cautioned that the effectiveness of these measures would be limited without strong market management.
Additionally, Dr. Khatun advised aligning domestic fuel prices with global market trends to pass on reductions to consumers, increasing revenue through digital compliance instead of bank borrowing, and enhancing allocations for productive sectors and skill development programs to tackle unemployment. She also underscored the necessity of bolstering energy storage capacity to handle emergency scenarios.
Hassan Ahmed Chowdhury Kiron, Chairman of Debate for Democracy, highlighted the significant economic challenges confronting the country. He mentioned that the current government inherited economic difficulties stemming from the Russia-Ukraine conflict and past economic policies.
Kiron pointed out the government’s efforts to stabilize the market without raising fuel prices but ultimately adjusting prices for various fuels in line with global trends. He revealed that the government incurred a daily loss of Tk 165 crore from fuel sales, totaling Tk 4,300 crore in losses for April alone. Without the price adjustments, the subsidy requirement was projected to reach Tk 12,000 crore by June.
The shadow parliament debate featured participants from Kabi Nazrul Government College (government side) and Dhaka College (opposition side), with trophies, crests, and certificates awarded to the participants. The judging panel included Professor Abu Mohammad Rais, Dr. SM Morshed, Dr. Tajul Islam Chowdhury Tuhin, and journalists Abul Kashem and Maidur Rahman Rubel, with Kabi Nazrul Government College declared as the debate winner.