Policymakers and economic experts have expressed concern over the country’s debt situation.
They have warned that if necessary reforms and fiscal discipline are not ensured in time, Bangladesh could fall into a serious debt trap.
CPD distinguished fellow Prof Mostafizur Rahman said: “If we cannot increase revenue collection and fail to control expenditure, it is inevitable for our country to fall into a debt trap. Then we will have to borrow again to repay the debt.”
National Board of Revenue (NBR) chairman Md. Abdur Rahman Khan said: “We are already in a debt trap. If we do not accept this fact, it is not possible to move forward in the future.”
These comments came at a seminar organized at the National Economic Council (NEC) conference room in Sher-e-Bangla Nagar in the capital on Monday (December 8).
Monira Begum, additional secretary, General Economics Division, Planning Commission, presented the keynote address.
The chief guest was Anisuzzaman Chowdhury, special assistant to the chief adviser on finance.
Bangladesh Bank governor Ahsan H Mansur was special guest.
In addition, Planning Division Secretary SM Shakil Akhtar, Finance Division Secretary Md. Khayeruzzaman Majumder, and GED member Manjur Hossain, along with high-ranking officials and economists, were present at the event.
Mostafizur Rahman also mentioned that the salaries and pensions of government employees, expenditure on agriculture and education sectors are now lagging behind due to loan interest payments. This is threatening the development of social sectors.
NBR Chairman Abdur Rahman Khan said that a few years ago the tax-GDP ratio was 10% higher, but currently it is down to 7%.
He added: “The problem is mainly in tax collection, because it is not possible to collect revenue from all sectors of GDP.”
He said that during the tenure of the interim government, the NBR will be divided into two parts and work will start under the leadership of two secretaries.
On the other hand, Bangladesh Bank Governor Ahsan H. Mansur said that the process of merging the five troubled banks is progressing rapidly. The deposit guarantee has been increased from Tk1 lakh to Tk2 lakh.
He expressed hope that 7.6 million depositor families will be able to get their deposits back within a week or two and the new bank could see profits within the first or second year.
