Budget 2024: Bangladesh to focus on sustaining economic recovery

01 Jun '23

2 min read

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Bangladesh is targeting a GDP growth rate of 7.5 per cent in the next fiscal, finance minister AHM Mustafa Kamal said today while presenting the national budget for fiscal 2023-24.
Average annual inflation is expected to stand at around 6 per cent, he said.
The focus would be on sustaining the economic recovery by implementing the ongoing stimulus packages.

Bangladesh is aiming to attain a gross domestic product (GDP) growth rate of 7.5 per cent in the next fiscal (FY24) as the country is expected to return to a higher growth trajectory by investing in productive sectors and stimulating productivity and domestic demand, finance minister AHM Mustafa Kamal said today. The focus would be on sustaining the economic recovery by successfully implementing the stimulus packages.

It will be impossible to keep the annual average inflation within the 5.6 per cent target in this fiscal, he said while presenting the national budget for fiscal 2023-24 worth over Tk 7.61 lakh crore in parliament today.

Average annual inflation is expected to stand at around 6 per cent, he said.

The Russia-Ukraine war situation had had the biggest impact on inflation, government spending, balance of payments, foreign exchange reserves and exchange rates, he noted.

Kamal said the government’s success in dealing with the economic crisis and subsequent speedy recovery along with the protection of people’s health in the COVID-19 situation has been globally appreciated.

To achieve the growth target, the government would gradually come out of the contractionary policy and invest in ongoing and new growth-inducing projects, he said.

For this, the budget for the next fiscal has set a higher target of raising the public investment to 6.3 per cent of the GDP, he said.

Developing the logistics sector and reforming financial management will reduce time, cost and complexity in investment and business processing, he said. As a result, private investment, which has decreased slightly in the current fiscal, is expected to rise to 27.4 per cent of the GDP in the next fiscal.

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