Debapriya calls for audit of previous govt's liabilities, contracts
He says reviewing the outgoing government's economic decisions is essential to properly understand the macroeconomic situation and formulate sound policies
Debapriya Bhattacharya, distinguished fellow at the Centre for Policy Dialogue (CPD), has called on the new government to form a strong transition team to conduct a forensic review of the financial liabilities, procurement contracts, and foreign agreements left behind by the previous administration.
According to him, reviewing the outgoing government's economic decisions is essential to properly understand the macroeconomic situation and formulate sound policies.
He made these remarks on Thursday at a media briefing titled "Economic Review at the Starting Point of the New Government", organised by the Citizen's Platform for SDGs, Bangladesh, at BRAC Inn Centre in the capital.
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Bhattacharya noted that in developed countries, it is common practice to form transition teams during a change in government. Such a team would conduct a transparent and systematic assessment of financial liabilities, public procurement contracts, decisions on mega projects, and various foreign agreements undertaken by the previous administration.
He clarified that this would not be an act of political retaliation, but rather an institutional "forensic review" – akin to a post-mortem examination – aimed at ensuring objective evaluation.
He also suggested preparing briefing documents for each ministry, clearly outlining the current situation, risks, liabilities, and future course of action.
In particular, he stressed the importance of presenting an accurate picture of domestic and foreign debt, interest payment pressures, and the long-term implications of foreign agreements to the new government.
Based on such assessments, he proposed publishing a White Paper or "Blue Book" to help guide policy direction and ensure transparency to the public.
Administrative and economic challenges ahead
Referring to the challenges facing the new administration, Dr Bhattacharya said uncertainty currently prevails in global trade, investment, and labour markets. Although the government has assumed power with a strong political mandate, a significant portion of the cabinet lacks direct experience in state governance, which presents both opportunity and risk. Of a cabinet exceeding 50 members, around 40 have no prior governing experience.
He identified restoring law and order as a major challenge. Unless mob culture, extortion, bribery, and harassment are curbed, the rule of law cannot be established. He emphasised that the rule of law is not merely a political issue but has deep economic implications — without a secure and predictable environment, investment and job creation will not increase.
Inflation and macro stability must be priorities
Calling for immediate attention to price stability, Bhattacharya urged vigilance to prevent inflation from rising again ahead of Ramadan. Despite various measures over the past one and a half years, desired outcomes have not been achieved. He stressed the need to ensure energy and food security while boosting private sector investment to generate employment.
Describing macroeconomic stability as "the mother of all reforms," he emphasised the importance of addressing inflation, interest rates, exchange rates, and the domestic and external debt situation.
"If these remain weak, sustainable investment, employment generation, debt repayment, and food security cannot be ensured," he said.
