Most probably, the Bangladesh government is going to face the most difficult challenge and this is the challenge of tackling inflation. In the last 12 months, inflation has crossed 12% of what the government should be worry off. According to me, Inflation is the upcoming threat of Bangladesh, which will make it difficult to implement the budget for fiscal 2012-2013.I think analysts are also agreed on this topic as they have already given their speech regarding inflation the main obstacle to pass.
There are many reasons behind this problem. However, I have found the reduction of investment in private sectors the main problem. As the government has implemented more tax in these sectors gradually, investment will decrease according to this implementation of taxes. Thus, the inflation will increase more and more. Now a days we are observing and finding it difficult to buy utilities due the growing prices which is another reason behind inflation.
If the government is anxious about this problem then it should take efficient steps as soon as possible. I have some suggestions to overpower the problem of inflation but the whole thing depends on the sincerity and integrity of the government to unravel this threat.
The government should find ways to enhance investment to help people find jobs, increase their purchasing power, and take proper decisions to increase private investments. The Government needs to find the alternatives to bank borrowings to make the budget a successful one. Borrowing from the bond market and saving certificates can be alternative to bank borrowings. The mechanism of implementing the annual development programme is weak and slow which needs to be swift and well built.
Actually, I am feeling sorry for the people, the people who are living from hand to mouth. The solution of this problem is solely related to the consciousness of the government to these people. If the government is unaware of these poor people who are the utmost portion of the total mass it will never be able to overcome inflation: the upcoming threat for Bangladesh.