'Cut ADP allocation to contain inflation'
The government should adjust the budget expenses by cutting the allocation under the Annual Development Programme (ADP) and bringing down operating costs in order to contain inflation, said Ahsan H Mansur, executive director of the Policy Research Institute.
If the government borrows a large amount of money from the banking system, the inflow of funds to the private sector will be squeezed and it will affect the investment in the private sector, he said at a post-budget discussion at the office of the think-tank in Dhaka.
"On the other hand, if the government prints the taka to maintain the expenses proposed in the budget for the upcoming fiscal year, inflation will climb further."
So, the government should think of taking some fiscal measures, reducing ADP allocation, and avoiding borrowing a large amount of money from the banking sector, he said.