Spending target should have been reduced: Salehuddin Ahmed

The government should have set a lower spending target in the budget for the upcoming fiscal year, according to Salehuddin Ahmed, former governor of Bangladesh Bank.

"The deficit of the upcoming budget is huge. That means expenditure should have been reduced. For example, what is the need for 1,258 projects under the annual development programme (ADP)?" he questioned in his immediate reaction.

The budget for FY2025 shows a deficit of Tk 256,000 crore, which is 4.6 percent of GDP.

Ahmed said establishments such as schools and hospitals are being built but they are not useful due to a lack of equipment and manpower.

Instead of doing that, the capacity of existing establishments should be increased, he added.

"If the ADP allocation is reduced, the deficit will be reduced," he stated.