Finance minister optimistic about 7pc GDP growth
Parliament: Finance Minister AMA Muhith on Sunday expressed his firm optimism in parliament that Bangladesh would be able to gain targeted 7 percent GDP growth in the current fiscal year (2015-16).
‘We're very much optimistic about achieving 7 percent growth rate in the current fiscal year (FY16) and we'll hopefully gain it,’ he said.
Muhith was presenting the quarterly statement, 1st quarter, (July-September) on the progress on budget implementation, the flow of income and expenditure and macro economic analysis for the fiscal year (2015-16).
The Finance Minister said the government earlier made a projection of achieving 7 percent growth rate in the current fiscal year while an encouraging sign is also there from the projection of various local and international agencies.
He said the GDP growth rate in the last fiscal year (2014-15) notched 6.55 percent, which is higher than the growth rate of the same period with the comparable countries.
Regarding the public expenditure, Muhith said the overall public expenditure in the previous fiscal (2014-15) stood at Tk 203,618 crore which is 13.5 percent of the GDP and 8.2 percent higher than the previous fiscal.
The public expenditure during the first quarter (July-September) of the current fiscal year totaled Tk 37,124 crore which is also 12.6 percent of the budget.
The Finance Minister said during the first quarter, the overall expenditure increased by 1.6 percent, the ADP expenditure by 10.4 percent while the non-development expenditure was reduced by 0.4 percent.
The Finance Minister said Bangladesh would become a prosperous country with the united efforts of all and relentless efforts from the countrymen under the able leadership of Prime Minister Sheikh Hasina.
‘It's my belief that the current social and political stability and the continued progress of economic development would soon materialise the firm target of Bangabandhu's 'Sonar Bangla' in our lives,’ he said.
He said the wheel of the economy remained running from the very beginning of this year while all macroeconomic indicators remained stable due to the pragmatic management of the government alongside having political stability.
Muhith said an investment-friendly environment is being created for implementing the development programme in the power, energy and communication sectors.
‘On the whole, this is high time to materialise the dream of building hunger -and- poverty free, balanced and dignified Bangladesh. The voluntary participation of all is required for properly utilising this time,’ he said.
Referring to the firm base of the country’s socioeconomic development, the Finance Minister said, ‘It's my belief that with the skilled and dynamic leadership of the government alongside the voluntary participation of the countrymen, we would become a developed and prosperous country by 2041.’
Highlighting the macroeconomic indicators during the first quarter of the current fiscal year, he said the budget deficit remained within the target in the current fiscal year while the government's loan to GDP ratio remained at 35 percent, which is also tolerable. ‘Overall, our position is very good in terms of government loan management.’
He informed the House that the government took Tk 7,048 crore loan from the public sector banks during the first quarter which is also 18.3 percent of the fiscal target.
Besides, the net sale of the savings certificates stood at Tk 6,681 crore which is 45 percent of the fiscal target.
Regarding the interest rate and inflation, the veteran minister said due to the availability of enough liquidity in the banking system, the call money rate came down to 5.7 percent after the first quarter of current fiscal which was 8.6 percent in January last year.
He also noted with satisfaction that the food and non-food inflation rate in September, 2015 came down to 6.3 percent and 6.2 percent respectively thanks to the satisfactory production in the agriculture sector, reduction in food price and fuel oil price in international market, normal supply chain, government's effective macroeconomic management and cautionary monetary policy of Bangladesh Bank.
‘It's my belief that this flow would continue in the coming days while the inflation would remain within the target at the year end,’ he added.
Highlighting various steps and achievements of the present government in the human resources development, health, power and energy, communication infrastructure, agriculture and rural development, public welfare, expatriates welfare, Muhith told the House that through the implementation of the 'One House One Farm' project, about one crore family or some five crore people would be permanently freed from poverty by 2021.