The government of Bangladesh has been compelled to pull down its projections for expenditure in the coming couple of years – in light of the changed economic reality brought about mainly by the Russia-Ukraine war and its aftermath of sanctions and counter-sanctions. In its projections for the 2021-22 budget, the government had projected its total expenditure at 17 percent of GDP for the next two fiscals, i.e. 2022-23 and 2023-24. However, in preparing the budget for 2022-23, the government has estimated expenditure at 15.2 percent of GDP for the 2022-23 fiscal, while it will be 15.5 percent for the 2023-24 fiscal. By 2024-25, as per a budget document, the target for expenditure has been set at 15.6 percent of GDP. Read more: Austerity is on but people will get electricity: PM The government in the last fiscal, 2021-22, had set the expenditure target at 17.5 percent, but it was revised to 14.9 percent. This is part of the government’s austerity drive in terms of expenditure, given all the forecasts that the world is heading towards an economic recession in 2023.  According to the document, government expenditure was 13 percent of GDP in 2020-21 fiscal. As per the document, with successful implementation of reforms in Public Financial Management, government expenditure kept increasing since the 2015-16 fiscal. Read more: PM reiterates call to practice austerity in all spheres of life It also mentioned that the Annual Development Programme (ADP) was 4.5 percent of the GDP in the 2020-21 fiscal. In the current fiscal, the government plans to allocate 5.5 percent of the GDP for the ADP while it is 6.3 percent for 2022-23 and 6.4 percent for 2024-25. The document is revealing in how large the Russia-Ukraine conflict looms in the government’s calculations, and the challenges posed in its wake. The “unprecedented” price hike in the international energy market, food supplies and other essential commodities alongside the widespread disruption in international supply chains have adversely affected the global economy, including Bangladesh. Read More: Govt focuses on less current expenditure and increased capital spending: official document The conflict is likely to emerge as a new obstacle in the way of achieving development targets, as well as full recovery from the COVID-19 crisis. The prices of essential import commodities for Bangladesh like oil, gas, fertiliser, edible oil, etc. have skyrocketed in the international market. According to Finance Division estimate, only nine essential commodities (crude and refined oil, LNG, wheat, fertiliser, palm oil, coal, soybean oil, maize and rice) imported to Bangladesh will cost an additional USD 8.2 billion in 2022, considering the rise in their prices over that in 2021. The other key import items like consumer goods, capital machineries and industrial raw materials have also seen significant price escalations in the international market. In addition, the costs of international logistics are on the rise. Import-induced inflation, therefore, is gradually emerging as a major concern for Bangladesh Government. Read More: Govt spending on public servants is to rise next fiscal

Prime Minister’s Private Industry and Investment Adviser Salman F Rahman has emphasized on diversification of exports and reducing imports to stabilize the currency's depreciating trend. He was speaking at a business luncheon meeting organized by Bangladesh-Malaysia Chamber of Commerce and Industry at a city hotel on Sunday. Salman said the austerity measures initiated by the government and the central bank to rein in a bullish trend of import since the beginning of the second half of last fiscal year are paying dividends as import costs have shrunk to $6 billion from over $8 billion a month. “It [imports] used to be $8 billion a month, which came down to $7 billion last month and $6 billion this month. I believe our issues will be resolved pretty soon," he said. Salman said the prime minister took proactive initiatives to protect the economy in pandemic times and she did the same when the dollar prices began skyrocketing. Read: Govt to provide financial support to ensure compliance in industries: Salman F Rahman "Alongside, Bangladesh Bank has taken initiatives to reduce imports at the right time." "When this government came to power we have about 4 thousand MW capacity in electricity but now it has become 22 thousand MW which reveals our potent energy situation. Though we now have a better situation to attract the FDI and I also admit there is room for development,” he says. The policies that make RMG a successful enterprise have to be replicated in other sectors," he added. Dr. Selim Raihan, Executive Director of South Asian Network on Economic Modeling (SANEM) presented the keynote speech on “Anatomy of a Macroeconomic Crisis”. "We shouldn’t call the situation a crisis rather we say it is a challenge," he added. "Yes, our foreign reserves have some pressure but we need not be compared with other countries like Srilanka and Pakistan as our economic base is more stable and stronger." President of FBCCI Md. Jashim Uddin were present on the occasion as special guest while Haznah Md Hashim, Malaysian High commissioner to Bangladesh was present as a guest of honor. Jashim Uddin says that the Bank shouldn’t impose higher interest to stabilize exchange rate, because the SME and other business can be demoralized and fall into distress. Read: Sufiur Rahman appointed Bangladesh envoy to Switzerland Malaysian High commissioner to Bangladesh Haznah Md. Hashim thanked BMCCI to organize this well-timed seminar on burning issues. "As a brotherly nation and important trade and business associate, Malaysia will continue to support Bangladesh with all its strength as far as our bilateral bond become strong," she said. At the beginning BMCCI President Syed Almas Kabir said BMCCI "powerlunch" aimed for macroeconomic analysis which broadly focus on the current economic situation and inform us the overall health of economy a comprehensive view of the recent global financial crisis within a framework and the factor concerning our monetary and fiscal policy for crisis management. At the end of the programme, CEO of Robi Axiata Ltd. and as a Vice President of BMCCI Riyaaz Rasheed thanked all and expressed his gratitude being a part of this grand event.  

Prime Minister Sheikh Hasina on Tuesday reiterated her call to maintain austerity in all spheres of life including in electricity  consumption in the wake of global inflationary situation. She also said that if all concerned could practice austerity then the country would benefit in the long run. The premier made the call while presiding over the first meeting of the Executive Committee of the National Economic Council (Ecnec) in the current 2022-23 fiscal year held at the NEC Conference Room in city. She joined the meeting virtually from her official residence Ganabhaban. Planning Minister MA Mannan briefed reporters after the meeting. He said that the PM has urged everyone to maintain austerity in all spheres. "Let us all maintain austerity, the prime minister has asked the government machinery including bureaucrats and common citizens to maintain austerity." The planning minister said Bangladesh is being affected by the current global situation and by the price hike of fuel oil. "We'll have to remain alert to face the impacts on those products which we do not produce. The prime minister has mainly suggested the countrymen to maintain austerity for such reason." State Minister for Planning Shamsul Alam said PM Hasina has always advised all to maintain austerity.

The Religious Affairs Ministry issued several directives regarding celebration of Eid-ul-Azha and offering prayers at Eidgah and mosques considering the overall  situation in the country . The ministry issued a notification in this regard  on Thursday. The ministry requested people  not to use lights for decoration during Eid-ul-Azha celebrations People have been asked to come for Eid prayers with ceremonial wash (Oju) done from respective houses. Authorities have been directed to provide soap, hand sanitizers at the washrooms of Eidgah and mosques to prevent the spread of Covid1-19.  Also read: Ensure uninterrupted ATM, POS, internet banking , MFS during Eid vacation: BB They  must wear masks while attending Eid congregations and cannot use cap, prayer mates kept at Eidgah or mosques, said the notice. Social distancing and health guidelines to be maintained while performing Eid prayers and they must stand for prayers leaving one row empty, it said. The ministry also requested the imams and religious leaders to conduct prayer seeking the Almighty’s blessings to protect everyone from the pandemic after the Eid prayers. Also read: Skyrocketing fodder prices leave cattle farmers fretting ahead of Eid The religious leaders, imams, mosque governing committees and local administrations have been asked to implement the directives. The ministry has also asked people to follow the guidelines of the Fisheries and Livestock Ministry for sacrificing animals on the Eid day.