CPD for financial reforms to boost growth

BSS, Dhaka :Centre for Policy Dialogue (CPD) today said despite the hartals and countrywide blockade, Bangladesh is closing its financial year 2014-15 (FY15) with a number of microeconomic advantages.The civil society think-tank in its quarterly report on “Bangladesh Economy: FY15″ released today at a press conference at CIRDAP auditorium opined the country may bring some massive reforms in the upcoming fiscal taking the advantages of lower inflation, declining interest rate, stable exchange rate, manageable fiscal deficit, positive balance of payment, foreign exchange reserve and low level of global commodity prices.”If the government carry-out substantial reforms in policy levels in the upcoming fiscal utilizing the stability of the economy, Bangladesh can easily move out from the average 6 per cent plus GDP growth,” said Dr Debapriya Bhattacharya, Distinguished Fellow of CPD. He also stressed for political harmony for the sustainable economic growth of the country. The CPD made the report under its Independent Review of Bangladesh’s Development (IRBD) Programme. The think tank body recommended for forming five independent commissions for statistical, agriculture price, local government financing, public expenditure review and financial sector reform towards better macroeconomic management. It also advocated for expediting the reform agendas such as public services act, PPP act, privatization, financial reporting act and others, which are being remained stalled. Commenting on tax reform, Debapriya Bhattacharya said: “Boosting of tax revenue collection without institutional reform is not possible, rather the exercise of traditional style would impose more burdens on tax payer.” He also opted for imposing of “inheritor tax” saying a person who doesn’t do any work should not be successor of any property without any tax.The CPD distinguished fellow also urged the government to formulate a law regarding black money. “If there is any law about it, there will be a continuation of whitening the black money and regular scope of mainstreaming the undisclosed earning,” he added.About the “fast tracked projects”, the CPD said out of six projects, four is on track and would be successful while the status of another two is conditional.Replying to a query, Professor Mustafizur Rahman, Executive Director of CPD, put emphasis on increasing investment and productivity to attain the goal of “Vision-2021” envisaged by the government, as the country is still far behind of attaining the desired GDP growth. He also suggested the government to ensure the maximum utilization of resources for highest outcome.