State of the Bangladesh Economy in FY2021-22
Independent Review of
RBD
Bangladesh's Development
Macroeconomic Management
To this end-
Implement unfinished support agendas such as loans to smaller entrepreneurs and fuller
implementation of programmed social protection programmes (including cash transfer)
must be ensured
A focused and targeted expansionary fiscal policy reinforced by accommodative monetary
policy should be pursued by the government
■ Policymakers should acknowledge that a targeted flow of fiscal resources to the more
vulnerable households as well as to relatively small (and informal) enterprises will have
more ‘aggregate domestic demand augmenting' effect and provide protection to the
marginalised groups
■ Mobilisation of domestic resources for underwriting the targeted expansionary fiscal
policy by curbing tax evasion will be helpful, however, it may not be the most critical
binding constraint
✓ The experience of the COVID-19 period shows that the ability to effectively implement expanded
public expenditure programmes, including any additional stimulus packages, in quantitative and
qualitative terms, is possibly the foremost binding constraint
■ Real time and updated data on poverty, employment, inequality and budget execution are
essential for the effective design of the needed policy package
■ The government will need to revitalise the lost reform and good governance agendas to
address the newly emerging challenges
CPD (2021): State of the Bangladesh Economy in FY2021-22 (First Reading)
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