In the recently proposed budget Finance Minister AHM Mustafa Kamal has identified six challenges for the government in the upcoming 2022-23 fiscal year. Minister emphasized the challenges during his budget presentation on Thursday, 9 June 12, 2022. The government should be resourceful in confronting these challenges as failure to resolve even one of these challenges has the potential to damage the overall economic stability of the country.
One of the first challenges is containing inflation, next is enhancing domestic investment; financing additional subsidies required for the increased gas, power and fertilizer prices; utilizing funds available through foreign assistance and timely completion of high-priority projects; increasing the collection of local VAT and raising the number of individual tax-players and finally maintain stability in the exchange rate of taka and keeping foreign exchange reserves stable.
Minister unveiled a significant strategy to address these challenges. Such as increasing supply and reducing demand. Going forward the government will have to either stop import-dependent and less important government expenditures or reduce them. Furthermore, govt. will also have to slow down the pace of implementation of low-priority projects and focus on enhancing the implementation of high and medium-priority projects.