Experts at a discussion observed that rising budget deficits, long financed by bank borrowing and central bank money printing had fueled inflation and sharp currency depreciation.
They laid emphasis on increasing competitiveness and productivity to drive economic diversification for stronger growth and job creation.
The observation came at the discussion titled "Budget Insights: Challenges and Opportunities Ahead" at the Metropolitan Chamber of Commerce and Industry (MCCI) Gulshan office in the city.
MCCI and Policy Research Institute (PRI) jointly organised the event on Monday.
Dr Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser, Ministry of Finance, attended the discussion as the chief guest.
Anisuzzaman Chowdhury said that due to reliance on foreign loans, external influences often shape the country's policy decisions.
"While accepting foreign aid for development projects, the country must adhere to certain conditions, which ultimately hamper both revenue generation and foreign investment. We must work towards reducing dependence on foreign loans," he added.
Presenting the keynote paper at an event, PRI chairman Zaidi Sattar called for urgent attention to tax policy and administration to bolster revenues.
Kamran T Rahman, president of the MCCI, said that in response to the Finance Ordinance 2025, certain measures, such as a higher government borrowing target from the banking system, could lead to a crowding out effect, restricting private sector investment, and potentially intensify inflationary pressures that ultimately burden consumers.
