Reducing inflation is a key challenge for the new fiscal year, State Minister for Commerce Ahsanul Islam Titu said today (7 June) at a post-budget press conference.
"We have taken reducing inflation as a challenge in the new fiscal year" he said at the conference held at the Osmani Memorial Auditorium in Dhaka.
Earlier on 6 June, Finance Minister Abul Hassan Mahmood Ali presented the proposed National Budget of Tk7,96,900 crore to parliament.
Titu emphasised the government's efforts to make essential commodities more accessible.
"We are continuing to allocate permanent shops alongside truck sales to distribute TCB products to the public. These will be sold at both subsidised and fair prices," he said.
Meanwhile, in response to a question about Benazir legalising his assets by paying a 15% tax, Prime Minister's Economic Advisor Mashiur Rahman explained that the Anti-Corruption Commission (ACC) is investigating the allegations against him.
“All his properties have been seized, and if found guilty, legal action will be taken according to Bangladesh's laws,” he said.
The press conference, organised by the Ministry of Finance, was also attended by the Minister of Local Government, Rural Development and Cooperatives Tajul Islam, Industries Minister Nurul Majid Mahmud Humayun, Planning Minister Major General (retd) Abdus Salam, Housing and Public Works Minister Ram Ubaidul Moktadir Chowdhury, Prime Minister's Finance Advisor Mosiur Rahman, Agriculture Minister Dr Md Abdus Shaheed, Education Minister Mohibul Hasan Chowdhury, State Minister for Commerce Ahsanul Islam Titu, State Minister for Finance Wasika Ayesha Khan, Cabinet Secretary Md Mahbub Hossain, Bangladesh Bank Governor Abdur Rauf Talukdar, National Board of Revenue (NBR) Chairman Abu Hena Md. Rahmatul Muneem.
The proposed budget is 4.6% larger than the current one and much lower than the year-on-year average increase of 11% seen in the last 5 years.
During the peak of the coronavirus pandemic, which brought the economy to a near halt amid worldwide lockdowns, the national budgets grew by around 9%. The budget for FY2023-24 has been 12.35% larger than the previous year's.
A prolonged economic crisis, driven by both external and internal factors has forced the government into a tight fiscal position.
Bangladesh saw a 5.82% growth in the gross domestic product (GDP) in FY2023-24.
Under such circumstances, the government's prime target is to contain inflation, resolve the dollar crunch and achieve moderate GDP growth.
The country has been grappling with an average inflation of 9.73% in the first 11 months of the current financial, and then there is one of the worst dollar shortages in recent times.
In the proposed national budget, the economic growth target for the upcoming fiscal year has been set at 6.75% - lower than the 7% of the outgoing fiscal year.
At the same time, the government has set an inflation target of 6.5%.
The proposed budget has a deficit of Tk 2,57,000 crore. The government has plans to get foreign loans and grant allocations of Tk1,00,000 crore; domestic borrowing will cover the rest of Tk1,57,000 crore.
The bank borrowing target for FY2024-25 has been set as Tk 1,32,000 crore.
The highest expenditure is for interest payments at Tk1,29,000 crore in the proposed budget.
With an 8% increase compared to the current one, revenue collection has been set at a target of Tk 5,40,000 crore for FY2024-25.
For the first time, funding for the Annual Development Programme (ADP) has been reduced amid an austere stance in the proposed budget.
This is the first budget of the fourth consecutive term of the government led by the Awami League after winning the 12th National Parliament following the 7 January election.
