According to the fiscal management concerned, it is warning that the government might be in great trouble in the coming months. And if so happens the annual development programme for current fiscal year would be hampered greatly. According the National Board of Revenue (NBR), more than Tk.26 billion fell short in revenue collection in first half of the current fiscal year due to the low performance of VAT and custom officials. On the other hand, current political violence does not show any positive result in the second half of the fiscal year. If the present political condition does not stop, the revenue collection, trade and industry will be affected greatly. In addition, government expenditures may go up for maintaining order and law. Moreover, World Bank (WB) takes “go-slow” policy to finalize two assured loans worth $800 million including the budgetary support loan worth of $500 million.
The official related to Economic Relation Division does not know what the cause of the delay. Another fact is that the next meeting of Bangladesh Development Forum (BDF) would be held in April after five years. It is thought that soured relation between the government and the donors is the main cause for this long holdup. Now, government would try to mend relation with the donors so that the uninterrupted flow of financial assistance becomes ensured.
However, now the important question arises whether the government’s investment in development activities suffers due to resource problem or not. In present condition, government would not be able to cut spending in public development as the private sector investment has been reduced remarkably for last two years. But the government need not to be worry about any shortfall in resources as it has some attractive products like saving tools which becomes much popular because of the substantial cut in interest rates on deposits. But the higher yields of its saving tools have made things difficult for the government as the interest payment with administrative cost becomes largest expenditure in non-development sector. However the government could borrow from banks because there are thousands of money remains idly in banks due to the lack interest in taking loan of private sectors.
But the present political unrest, prevailing throughout the country, affects greatly both trades and development activities of the government. The government may borrow for development projects only when the political situation becomes calm down. Otherwise, it need not borrow to finance the development projects.
The official related to Economic Relation Division does not know what the cause of the delay. Another fact is that the next meeting of Bangladesh Development Forum (BDF) would be held in April after five years. It is thought that soured relation between the government and the donors is the main cause for this long holdup. Now, government would try to mend relation with the donors so that the uninterrupted flow of financial assistance becomes ensured.
However, now the important question arises whether the government’s investment in development activities suffers due to resource problem or not. In present condition, government would not be able to cut spending in public development as the private sector investment has been reduced remarkably for last two years. But the government need not to be worry about any shortfall in resources as it has some attractive products like saving tools which becomes much popular because of the substantial cut in interest rates on deposits. But the higher yields of its saving tools have made things difficult for the government as the interest payment with administrative cost becomes largest expenditure in non-development sector. However the government could borrow from banks because there are thousands of money remains idly in banks due to the lack interest in taking loan of private sectors.
But the present political unrest, prevailing throughout the country, affects greatly both trades and development activities of the government. The government may borrow for development projects only when the political situation becomes calm down. Otherwise, it need not borrow to finance the development projects.