Govt shifting away from patronage-based economy

Finance Minister Amir Khosru Mahmud Chowdhury on Saturday said the government is working to move the country away from a patronage-based economic system that has historically concentrated wealth among a small group of beneficiaries.

“Such a system allowed large sums of money to be distributed to a few selected individuals through political patronage. It is not easy to come out of that situation. The government inherited a fragile economy, and revitalising it is a challenge for any administration,” he said.

Speaking at a pre-budget discussion with leaders of the Economic Reporters’ Forum (ERF) at his office in the Bangladesh Secretariat, the minister said the government is striving to ensure equal opportunities for all citizens. He noted that initiatives such as family cards and farmer cards have been introduced to support this goal.

He added that while the poverty rate is gradually declining, many businesses are still struggling to pay wages and repay bank loans. “Reducing economic inequality remains a key priority,” he said.

Khosru also indicated that allocations for education and health sectors would be increased in the upcoming budget, with a focus on building a skilled workforce. “It is not enough to obtain BA or MA degrees; practical skills must be strengthened,” he said, emphasizing vocational education.

Rejecting claims that the government is “printing money” to borrow from banks, he said such misinformation could harm the country’s credit rating. “Borrowing from the banking system is a routine matter,” he added.

The minister noted that government borrowing from banks stood at Tk 17,592 crore on February 17, which declined to Tk 11,722 crore by April 22.

Finance Secretary Md. Khairuzzaman Mozumder, Financial Institutions Division Secretary Nazma Mobarek, Bangladesh Bank Governor Md. Mostaqur Rahman, National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan, and Deputy Governor Habibur Rahman, among others, were present at the meeting.

At the discussion, ERF President Daulat Akter Mala presented a 21-point budget proposal on behalf of the organisation. Other ERF leaders also spoke in support of the proposals.

Officials said there would no longer be scope to receive incentives without exporting goods, and work has begun on formulating an accrual-based budget, though it will take time. Efforts are also underway to increase the tax-to-GDP ratio.

The Bangladesh Bank governor added that emphasis has been placed on repatriating laundered money, reopening closed industrial units, and strengthening the foundations of five Islamic banks through updated documentation.