DHAKA: World Bank Bangladesh office chief economist Zahid Hussain on Wednesday said the budget of 2014-2015 fiscal year is not bigger comparing to the country’s overall development, rather it is bigger than the capacity of implementation.

The noted economist came up with the remarks when addressing a post-budget press conference at the WB Dhaka office in city’s Sher-e-Bangla Nagar area.

Zahid said, “The budget is mixed comparing to its expenditure.”

Besides, the annual development program (ADP) is also bigger in its size than that of its capacity of implementation, he added.

Zahid said, “We should not be dependent on ADP for project implementation. Many projects can also be implemented under the public-private partnership (PPP).”

“The legal frame of PPP needs to be changed,” he added.

On government borrowing from the banks, he said, “A big portion of the budget is foreign aid dependent. Pressure will be increased on the local banks and it will create liquidity crisis, if the aids don’t come.”

He suggested for mentionable tax decrease in order to protect the ready-made garment sector.

On education sector, Zahid said, “Considerable success has come in this sector, but about 50 lakh children are being dropped out at one stage, which has to be stopped.”

Power production has been increased remarkably, but no development has made in power distribution.

WB country director Johannes Zutt and chief economist Salman Zaidi were also present at the brief.

Finance minister AMA Muhith presented the proposed budget for FY 2014-2015 at the Parliament on June 5, which is scheduled to be passed on June 29.

BDST: 1855 HRS JUN 25, 2014