Government targets 7.2 percent growth in FY 2016-17

The government plans to achieve 7.2 percent growth in the next financial year.

Finance Minister Abul Maal Abdul Muhith fixed the new target while presenting a Tk 3.14 trillion national budget for the 2016-17 fiscal in Parliament on Thursday, stressing greater revenue collection.

The new budget is 15 percent bigger than the initial 2015-16 budget and 29 percent than the revised estimates for 2015-16.

Muhith said, “…in recent months, a number of private sector investment indicators have posted positive changes. I expect this trend to continue in the next fiscal year underpinned by our ongoing efforts in infrastructure development.

“In the case of public investment, both the size of the ADP and its implementation rate will be stepped up.”

The minister hoped ‘consumption spending will also rise as public sector employees will draw their salaries, including allowances as per the new pay scale’.

Muhith also expected Bangladesh’s export income to go up with the positive economic prospects in the US and Europe, the main markets for Bangladeshi products.

“Moreover, there will be an upswing in foreign remittance inflows on account of the recent increase in overseas employment.

“A gradual fall in inflation coupled with an increase in real wages and foreign remittances will boost individual consumption spending. Over and above, political stability is expected to continue.”

He said, “Taking all these into consideration, we have set the GDP target at 7.2 percent for the next fiscal year.”

Workers busy preparing blocks that will be used to tame the river.

The size of the outgoing financial year’s budget was fixed at Tk 2.95 trillion. But it was later revised down to over Tk 2.63 trillion.

The GDP growth target in the current fiscal was fixed at 7 percent. But government data shows 7.05 percent GDP growth was achieved in the first nine months (July-March).

The size of the GDP, at constant prices, in the new budget is over Tk 19.61 trillion.

In the 2015-16 budget, the amount was initially over Tk 17.16 trillion but was later revised to more than Tk 17.39 trillion.