The Centre for Policy Dialogue (CPD) has recommended the government restore macroeconomic stability, widen fiscal space and ensure the best use of public resources through appropriate prioritisation in the upcoming budget for 2024-25.

The think tank made the suggestions during a media briefing at its office in the capital's Dhanmondi.

The fiscal targets for the upcoming budget should be set in a realistic manner, taking into cognisance the emergent macroeconomic scenario at home and abroad, the CPD said.

"Instead of focusing on achieving a higher GDP growth rate, it should focus on restoring macroeconomic stability."

The CPD urged the policymakers to take steps to rein in the rising cost of essentials. 

"Proper attention should be given to food production, social protection, subsidies for agriculture, and energy, power, health and education sectors."

Supporting the vulnerable and disadvantaged groups should be the central focus when it comes to subsidy management, according to the research organisation. 

"The government should focus on implementing foreign-funded development projects given the declining foreign exchange reserves."

It should also give importance to the projects that are almost finished whereas the schemes that have 10 percent or lower implementation rate up as of March 2024 should be deprioritised, the CPD said.

It called for an independent commission to look into the issues related to the rising costs of public infrastructure projects. 

The think tank said the government should raise revenue collection by expanding the tax net in order to create more fiscal space.