Finance Minister AHM Mustafa Kamal has said that Bangladesh is in the safe zone in terms of receiving the foreign loans. He made the remarks while briefing reporters after the two consecutive meetings of the Cabinet Committee on Economic Affairs (CCEA) and Cabinet Committee on Public Purchase (CCPP) on Thursday. Also read:Govt to consult with all on proposed universal pension scheme: Finance Minister Defending his remarks, he said Bangladesh’s debt-GDP ratio is 34 percent which is lowest in the world. Our foreign exchange reserves are much higher than requirement, remittance is increasing, export is growing, and inflation is under control. We’re in the safe zone”, he said. Kamal said the whole world is appreciating Bangladesh for its economic performances. He said the countries having debt higher than their GDP (gross domestic products) are currently in danger. “But we are not at that level. Rather, our debt is much lower than GDP,” he asserted. Responding to another question, the finance minister said the toll rates of the Padma Bridge have not been fixed yet. But a joint venture of South Korea and China has been awarded a contract to collect the tolls from the Padma Bridge project. Also read:NBR works for win-win tax in upcoming budget: Finance Minister “We didn’t do any detailed work on it. But we have a plan to make some profits by collecting revenue from the Padma Bridge project in order to implement more similar projects”, he said. He said both the government and the users of the Padma Bridge will benefit from the project. “We hope we could collect more revenue than the requirements to meet its expenditures”, he added.

The proposed budget deficit is above 6% of GDP amounting to Tk 2.11 trillion, which may reach to 8% as the revenue collection has been showing slow trend in pandemic period, according to BUILD, a business development platform, in its budget reaction. The Business Initiative Leading Development (BUILD) thinks the deficit will mainly be filled taking loan from the banking sector and foreign loan. Also read: New budget unveiled with focus on protecting lives and livelihoods The dependence on foreign financing has been increased 162% than previous fiscal which is 'alarming', it said. The social safety net will be expanded, higher than the current fiscal. Government has given enough emphasis on health safety issues, which need proper implementation. Also read: New budget: Tracking prices going up and down In terms of export diversification in Medical and Personal Protective Equipment(MPPE), extension of tax exemption benefits up to June 2022 may encourage export diversification in this sector, BUILD said. On the other hand, it seems, sluggish investment will continue as COVID uncertainty remains, and private sector credit growth is still at a lower level(8.7%), according to BUILD.