Prime Minister's Economic Affairs Adviser Dr Mashiur Rahman Thursday said the proposed Padma Bridge will be utilised for regional transit.
"The Padma Bridge will have provision of roads and railway. It will be used to transport regional cargoes," he said at a seminar in the city.
Bangladesh Institute of Development Studies (BIDS) organised the seminar titled "Ensuring growth with stability: Review of budget FY11 and implications for budget FY12."
BIDS Director General Dr Mustafa K Mujeri presided over the seminar, while research director of the organisation Dr Zaid Bakht presented the keynote paper. A number of policymakers participated in the seminar.
Bangladesh has undertaken US$2.9 billion project to construct 6.15 kilometres-long road-cum-railway bridge over the mighty river Padma to eliminate regional disparity between impoverished south-western region and developed Dhaka.
The government also has plans to set up Trans-Asian Railway and provide regional transport facilities for other nations of this sub-continent through utilising the potentials of the proposed Padma Bridge.
Dr Zaid Bakht said the rising inflationary pressure is likely to continue in the next fiscal also. So, it would be a major challenge for the government to manage the macro-economic stability.
He said: "Rising global inflation, depreciation of the local currency, high public expenditure, increased import cost due to higher interest, and upward adjustment in fuel and energy prices will drive the inflation."
He suggested expansion of public food distribution system and social safety-net programmes, both in terms of coverage and entitlement.
Dr Bakht suggested an expansionary budget for the upcoming fiscal (2011-12), as the government needs to boost public investment for achieving the projected 7.0 per cent gross domestic product (GDP) growth.
"The expansionary monetary stance could have some crucial impact. It is also needed to facilitate private investment for realising 7.0 per cent growth, increase subsidy for managing higher prices of oil and other essentials, and expand social safety-net programmes to control inflationary pressure."
However, he also expressed concern over the possibility that the expansionary budgetary move could create macro-economic instability, resulting higher public borrowing and inflationary impact.
"As the government's spending for development budget has increased at the fag end of the current fiscal, it will increase bank borrowing. So, the revenue generation efforts will have to be geared up further," the BIDS research director said.
Suggesting efficiency in spending the development budget, Dr Bakht said if the country could implement the development schemes in time, private investment would be attracted further.
He also warned the government over undertaking an ambitious development budget that led to inclusion of many schemes under political consideration.
Moinuddin Khan Badal MP strongly criticised the expensive oil-based power stations, saying such weak projects of the government would affect the economy.
He said the government should control the population growth to achieve the GDP growth target and alleviate poverty.
Monwar Hossain Chowdhury MP sought quick coal extraction from the unexplored mines in the country's northern region for generating power and using in other productive sectors.
Dhirendro Debnath Shamvu MP said the next budget should have specific measures to ensure equal wealth distribution among the people.
thefinancialexpress
