DHAKA, June 5, 2017 (BSS) - The government has identified six major challenges to expedite growth for achieving the national development objectives over the medium term, according to the medium term macroeconomic policy statement for 2016-17 to 2018-19.
The main challenges are revamping private investment, quality and timely implementation of public investment, increasing implementation capacity, mobilizing adequate revenues, enhancing efficiency of labour and capital and ensuring institutional development and governance.
Macroeconomic Wing of the Finance Division published the policy statement which presents an outline of the recent macroeconomic situation together with an assessment of growth potential, medium term targets and strategic priorities of the government.
The policy statement called for revenue generation at an increasing rate and expanding the scope of concessional external assistance and on the other, requires ensuring quality and timeliness in public spending to expedite growth by mobilization of necessary resources.
The policy statement mentioned that significant expansion of private investment is crucial considering its share in the national economy.
"Growth entails increasing production efficiency by means of enhance productivity of labour and capital," the statement added.
The policy statement also said all government services including social protection programmes need to be delivered in a transparent and accountable manner in order to ensure social justice and build an equitable society.
Institutional development and discipline are also required which indirectly help ensure equitable distribution of benefits of higher growth, the policy statement said.
According to the policy statement, despite sustained macroeconomic stability and comparative advantage of having large working age population, investment potential in private sector could not be fully utilized due to inadequate infrastructure, particularly- dearth of uninterrupted supply of electricity and energy and scarcity of land.
Lack of implementation capacity and governance problems sometimes hampers quality government spending and expected distribution of growth benefits, the policy statement added.
Source: Bangladesh Sangbad Sangstha (BSS)