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PUBLIC INVESTMENT IN PHYSICAL AND SOCIAL INFRASTRUCTURE: AN APPRAISAL

MONTHLY BANGLADESH ECONOMIC UPDATE, JANUARY, 2016

MEU-January-2016The Bangladesh Economic Update  reveals that the low implementation status of public investment in physical and social infrastructure in the backdrop of continued sluggish private investment may hinder achievement of the targeted rate of growth in gross domestic product (GDP).  Taking account of five major sectors of public investment - roads and highways, bridges, heath, education, and social security and welfare - the research organisation evinces that the annual development programme (ADP) implementation status in these sectors became lower during July-December period of FY 2015-16 than the corresponding period of the previous fiscal year.   Taking account of the unsatisfactory quality of public investment in physical and social infrastructure and current state of sluggish private investment due to infrastructure shortage and lack of business confidence, the research organisation emphasises that the government must focus on stimulating private investment and ensuring effective utilisation of public investment in addition to channeling adequate resources into social sectors that give particular impetus to the improvement in human development.

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