GDP growth targeted at 7.5 while keeping inflation low
Finance Minister AHM Mustafa Kamal Thursday placed a Tk 761,785 crore national budget for the next fiscal year (FY24) targeting a 7.5 percent GDP growth with an expectation of keeping annual inflation at around 6.0 percent.
“Inspired by the patriotism of Prime Minister Sheikh Hasina as well as by her genuine love and responsibility towards the people of the country and unwavering support of the people, we can confidently say that a hunger and poverty-free, knowledge-based and developed ‘Smart Bangladesh’ by 2041 is not a distant dream. Bangladesh will march ahead and reach the pinnacle of prosperity defying all odds,” Kamal said in his budget speech.
The budget eyes a 7.5 percent GDP growth rate in the next fiscal year (FY24) since the country is expected to return to higher growth trajectory by way of investing in the productive sectors and stimulating productivity and domestic demand, said the minister.
He said the annual inflation is expected to remain much controlled in the next fiscal year due to the decrease in the prices of fuel, food, and fertilizer in the global market, along with the adjustment of fuel prices in the domestic market and government initiatives to keep the food and supply systems normal.
He said the proposed budget for FY24 is 15.2 percent of the GDP. The total size of the revised budget for the outgoing fiscal year (FY23) was Taka 6,60,507 crore.
The total size of GDP in the next fiscal year has been estimated at Taka 50,06,782 crore which was Taka 44,39,273 crore in the revised budget of the outgoing fiscal year.
The lower inflation trend is expected due to the decrease in the prices of fuel, food, and fertilizer in the global market, along with the adjustment of fuel prices in the domestic market and government initiatives to keep the food and supply systems normal.
Kamal wearing a traditional Panjabi and Pajama with a black ‘Mujib coat’ placed his 248-page budget speech titled “Towards Smart Bangladesh Sustaining the Development Achievements in a Decade and a Half” featuring power-point presentation for more than two hours that lasted till 5:13 pm in presence of leader of the house and Prime Minister Sheikh Hasina.
He said indomitable in adversity, confident and creative people are the sources of endless inspiration for Bangladesh. People of all professions and ethnic groups who are building Bangladesh with their sweat and blood are its asset and life force.
The Finance Minister said the economy of Bangladesh is gradually and surely becoming a global phenomenon with the whole-hearted endeavor of all. “The budget for the fiscal year 2023-24 has been crafted around the hopes and aspirations of the people of all strata,”
The budget session was resumed today with Speaker Dr Shirin Sharmin Chaudhury in the chair.
This proposed budget is the country’s 52nd budget and the 24th of the Awami League government in five terms.
This budget for FY24 is also the 5th consecutive budget of incumbent Finance Minister AHM Mustafa Kamal.
The budget will be passed in parliament on June 26, a bit earlier than the usual tradition because of the holidays of Eid Ul Azha.
The Finance Minister proposed to allocate a total of Taka 4,36,247 crore to operating and other sectors and Taka 2, 63,000 crore to the Annual Development Programme.
In the proposed budget for FY24, the total revenue is estimated at Taka 5 lakh crore. “Out of this, I propose to collect Tk 4 lakh 30 thousand crore through the National Board of Revenue and Tk 70 thousand crore from other sources,”
The overall deficit in the proposed budget will stand at Taka 2,61,785 crore, which is 5.2 percent of GDP. It should be noted here that the deficit rate was 5.5 percent in the previous budget.
Out of the total deficit, Taka 1,55,395 crore are proposed to be financed from domestic sources and Taka 1,02,490 crore from external sources.
While formulating the budget, Kamal said the government prioritized poverty alleviation, contemporary economic challenges and future development initiatives.
He said new sectors of revenue collection will be focused on to ensure an adequate supply of resources while the dependence on external debt will be reduced gradually to address the budget deficit. “Subsidies/incentives in various sectors will be rationalized to ensure rational resource mobilization,”
He said the government has laid emphasis on modernisation of agriculture adding that the use of technology in every sector has also been emphasized.
“Priority has been given to build physical, social as well as technological infrastructure which is suitable for the Fourth Industrial Revolution to pave the way for building a smart society, smart citizen, smart government and above all, smart economy. We hope that the implementation of this budget will make the economy stronger and sustainable,” he noted.
