Finance Minister Amir Khosru Mahmud Chowdhury said, we have to get out of the damage caused to the economy by taking loans from local banks by printing money. We will not move from this place.
He said such policies increase interest rates on the one hand, while the private sector becomes ‘crowd out’, which is in no way conducive to a sustainable economy.
The finance minister said these things in the pre-budget discussion organized by the finance ministry on Saturday. Members of the Executive Committee of the Economic Reporters Forum (ERF) and journalists covering the news of the Ministry of Finance were present in the discussion meeting held under the chairmanship of the Finance Minister.
Amir Khosru Mahmud Chowdhury said that the government wants to follow a policy framework where inflation will not be increased through additional money supply and no pressure will be created on entrepreneurs. It is one of the main guidelines and principals of our economic policy.
He alleged that in the past, the country’s economy was concentrated in the hands of a small number of people due to patronage-based politics. To get out of that situation and ensure inclusive growth, the government is emphasizing on democratization‘of ’ economy.
Stating that various initiatives have been taken to deliver the benefits of the economy to all levels of society, the finance minister said that the financial empowerment of women is being strengthened through the ‘Family Card’ program. According to him, women’s skills in managing household expenses can have a positive impact on savings and investment.
Emphasizing on strengthening primary services in order to reduce expenditure in the health sector, he said that if the cost of personal treatment is high, the quality of life of people decreases. In this case, if first aid is ensured, people’s income practically increases.
Referring to small and medium industries as the main driving force of the economy, he said, this sector creates the most employment. Besides, initiatives have been taken to mainstream startups, rural cottage industries, artisans and creative sectors. Opportunities are being created to enter the international market by providing design, branding and marketing support to rural products.
The finance minister also said that sports, culture, theater, film and music are being given importance as new economic sectors, because these sectors are also able to contribute to the national income.
Highlighting the current challenges, he said, the private sector is under pressure due to lack of discipline, currency devaluation and high inflation in the banking sector. Many industries are not showing the expected efficiency.
Mentioning the issue of increasing the tax-GDP ratio as a difficult challenge, he said that it is not possible to increase revenue collection if there is no speed in business. However, the government continues to work towards achieving this goal.
Emphasizing on increasing investment in health and education to exploit the demographic dividend, the finance minister said skill development and expansion of technical education are being done to increase employment and expatriate income.
Regarding energy security, he said, there is a plan to reduce import dependence, explore domestic sources and increase the use of renewable energy.
Regarding market management, he said, control through administrative system is not a sustainable solution. The market should be allowed to operate on normal lines of demand and supply. For this reason, he emphasized on strengthening the supply system and reducing the cost of business.
At the same time, referring to the need to relax the restrictions to increase investment, the finance minister said that if there are additional complications in business management, new investment will not come.
