Noted economists recommended focusing on macroeconomic stability, reduction of default loans, and reducing expenditures on mega-projects in the national budget for fiscal year 2024-25.

They placed the recommendations during the first pre-budget meeting between noted economists and the finance minister at the Padma Guest House in Dhaka.

"We have recommended to emphasise on macroeconomic stability, especially to tame inflation," said Salehuddin Ahmed, a former governor of the Bangladesh Bank.

It will not be useful to target higher GDP growth only, good distribution has to be ensured so inequality does not rise.

If necessary, the government can reduce expenditure on mega-projects, but spending on health and education should be increased, he said.

Direct tax collection should increase while dependency on indirect taxes should be reduced as they disproportionately impact the poor.

We have also suggested not to print money and to launch a market-based interest rate system to reduce inflation, he added.

Finance Minister Abul Hassan Mahmood Ali said the economy has some problems but we are on the right track.

The economists recommended reforms for many issues, including bad loans, he said.

Rehman Sobhan, chairman of the Centre for Policy Dialogue (CPD), Mustafizur Rahman, a distinguished fellow of the CPD, and Binayak Sen, Director General at the Bangladesh Institute of Development Studies, were among those present at the event.