Planning Adviser Dr. Wahiduddin Mahmud emphasised on Monday that the government is shifting its focus from the sheer volume of development expenditure to the quality and efficiency of spending.
“We’re focusing more on the qualitative standard of development expenditure than its size,” said Dr. Mahmud during a press briefing at the NEC Conference Room in Sher-e-Bangla Nagar, following the day's ECNEC meeting.
Responding to reporters' questions, Dr. Mahmud revealed that the government is preparing a comprehensive list of politically motivated projects undertaken in recent years. He explained that his office had been tasked with identifying such projects, especially those involving significant public expenditure.
“After assuming office, I was directed to identify fully politically motivated projects and those with maximum expenditure. If a project has incurred significant costs, it should be completed to avoid wasting public funds,” he said, stressing the need for responsible financial management.
Dr. Mahmud also noted that smaller projects with minimal expenditure but high potential could still be prioritized for completion if they prove beneficial.
Highlighting the importance of efficiency, Dr. Mahmud praised the work of officials conducting the review of development projects. “I believe in the process and want to accelerate the scrutiny of these projects,” he added, signaling the government’s commitment to ensuring projects are completed with minimal waste.
On the subject of the development budget, Dr. Mahmud acknowledged the challenges faced by both the Finance Adviser and the Bangladesh Bank Governor in managing the economy. He noted that with limited funds, an overly expansionary budget could exacerbate inflationary pressures.
“We’re trying to minimize the development budget for their convenience,” he said, while emphasizing that the government must strike a balance between controlling inflation and maintaining economic momentum. “We have to manage both sides,” he added, stressing that stagnation is not an option for the economy.
Dr. Mahmud also addressed the slowdown in private sector investment, noting that industrialists and bankers have hesitated to invest since the political power transition on August 5. “Industries, banking operations, and lending to the private sector have all slowed down,” he observed, indicating the broader economic impact of the transition.
Public sector investment has also declined, with many development projects under scrutiny due to political motivations, further affecting overall economic activity, he added.
