STAR BUSINESS REPORT

Although the introduction of family and farmers’ cards may bring some relief, excessive reliance on bank borrowing to finance the budget deficit is harmful to the economy, said Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD).

She made the remarks yesterday at a shadow parliament debate programme organised by Debate for Democracy at the Bangladesh Film Development Corporation (FDC) in Dhaka.

Fahmida said government social safety net initiatives, such as the family and farmers’ card, are promising, but their success depends on transparency and accountability in selecting and managing beneficiaries.

She added that past social protection schemes have often suffered from irregularities and corruption.

Fahmida also said subsidies must be properly targeted, with priority given to agriculture, irrigation, and public transport.

She stressed that the next budget should set clear policy directions-- given limited resource mobilisation, and ensure cost-efficiency.