Muhith hopes for 10pc GDP growth

Finance Minister AMA Muhith said Bangladesh can attain 10 percent GDP growth through decentralisation of power by establishing autonomous local governments in districts and metropolitan cities.

"I believe that it is possible to accelerate the growth rate to 10 percent. However, this certainly calls for decentralisation of power," he said.

This agenda should be taken up for immediate implementation after the next election and all the parties taking part in the election should articulate their programmes in their election manifestos.

"It should be understood that each of our districts in terms of population and area is bigger when compared to those of over 60 countries in the world," Muhith said.

Referring to the constitutional recognition of local government, the minister said they had to introduce their own pattern of bureaucracy and formulate a list of their functions and responsibilities.

"Such list should specify the joint responsibilities of central and district governments on certain matters and lay out the process of coordination in this regard. The structure of the district government can be determined if this work is done," he said.

It would require a policy on revenue collection and sharing it between central and district governments, which is most difficult but important. In his view, the main responsibility of revenue collection should lie with the central government, while the district government would collect household-based property tax for specific services.

It would never be possible on the part of district governments to provide services and undertake best development initiatives, unless the powers and functions are decentralised, he added.

"I think we are ready to achieve higher trajectory of economic growth given our sustained growth momentum over the past two decades. This certainly calls for major re-haul in the governance structure of the country."