The budget for the next fiscal year would be around Tk340,000 crore with an economic growth target of 7% plus, Finance Minister AMA Muhith informed economists and researchers yesterday.
“A major portion of the budget is expected to be financed from concessional borrowing and would go to mega projects,” he told a pre-budget meeting at the NEC conference room, dropping a broader hint that the development budget would be even higher in 2016-17 as a result.
The meeting was a part of the Finance Ministry’s regular practice to get inputs from stakeholders before placing each national budget.
Economists and researchers from Bangladesh Institute of Development Studies (BIDS), Bangladesh Economic Association (BEA) and Economic Research Group (ERG) took part in the discussion, giving Muhith a green signal to plan a big budget thanks to the decline in fuel oil and raw material prices in the international market.
Muhith said the current budget of around Tk295,000 for 2015-16 would be revised down by 7% to 8%.
Finance Secretary Dr Mahbub Ahmed said the GDP growth was 6.55% in 2014-15 fiscal year. “But this year we can achieve 7% growth.”
Noted economist Dr Wahiduddin Mahmud said a number of mega projects are being undertaken for social transformation, which is very important but there is uncertainty about when the projects are kicked off and implemented.
He thinks the upcoming budget should be made as big as possible since the prices of fuel oil and other raw materials are at their lowest in the international market now.
“There is a scope for announcing a big budget, which is exactly what we need now,” he said, drawing the finance minister’s attention to the availability of resources. “There is scope and challenge for the big budget simultaneously,” he said, however.
Dr Mahmud raised concern that the country’s investment situation is still weak while criticising that a total of 75% government investment is in the construction sector, asking where the impact of the investment on GDP growth is.
BIDS Director General KS Murshid said the mega projects should also be undertaken in the agricultural and farm sectors.
State Minister for Finance and Planning MA Mannan, National Board of Revenue Chairman Md Nojibur Rahman and senior officials concerned were present at the meeting.