Govt will not print money to fund budget

The government will not resort to printing money to finance its budget, instead aiming to revive the economy through investment and stronger resource mobilisation, Finance Minister Amir Khosru Mahmud Chowdhury said yesterday.

“We do not want to print money,” the minister told journalists after a meeting with officials of the National Board of Revenue (NBR).

He said the government’s priority is to shift from a debt-dependent model to an investment-driven economy capable of generating sustainable growth and employment.

The minister described the situation as presenting “three types of challenges” -- reviving a struggling economy, fulfilling electoral pledges, and coping with the fallout from the Middle East conflict, which has pushed up fuel import costs.

His remarks come as Bangladesh faces increasing fiscal pressure, marked by lower-than-required revenue collection and rising government borrowing to manage expenditure.

“We have inherited an economy in a very difficult state. First, we have to salvage it. At the same time, we must deliver on the commitments we made to the people,” he said.

He underscored resource mobilisation as “extremely important” for stabilisation and future growth, warning that policy promises would be difficult to uphold without it.

“One of our major problems has been the lack of continuity in policies. Investors come, and then policies change, which sends the wrong message,” the minister said.

Efforts are underway to attract domestic and foreign capital, with Chowdhury noting strong interest following the elections.

“Investors had been waiting, and we are now receiving strong responses,” he said, expressing optimism about a pickup in inflows if reforms are implemented swiftly.

The reform agenda includes “serious deregulation” and restoring discipline in the financial sector and capital market to improve the investment climate.

Govt will not print money to fund budget

The upcoming budget will also focus on marginalised groups.

“These deprived people cannot be excluded indefinitely by citing budget constraints. We have to start with them,” he said, signalling continued support for social protection programmes.

The government is looking to diversify exports, offering incentives to new sectors similar to those for apparel exporters.

Meanwhile, Bangladesh’s LDC graduation process is progressing through the UN, though the minister refrained from definitive comments pending decisions at the UN Economic and Social Council and General Assembly levels.

The government is also engaging development partners as part of efforts to navigate the ongoing economic strain.