Eminent economist and CPD distinguished fellow Dr Debapriya Bhattacharya on Thursday commented that debt-based budget may pose challenges to fiscal discipline in the future.
In his immediate reaction after the budget session in the National Parliament, he said that the proposed budget has relatively high dependence on foreign debt and large lump sum allocations in various sectors, which may create pressure on fiscal discipline management in the future.
He also said that the success of the budget will mainly depend on its effective implementation. In principle, the budget has given importance to important issues such as building a human economy, liberalization and digital inclusion, which can be considered a positive aspect.
However, he commented that the financial framework required to implement these policy priorities is relatively weak.
According to him, the dependence on foreign debt in the budget and the tendency to make large lump sum allocations can create uncertainty in fiscal management.
Dr Debapriya said the biggest test in the coming days will be how efficiently the government can implement the budget while maintaining the continuity of reforms.
