• Monday, Jul 22, 2019
  • Last Update : 01:49 pm

FY20 budget aims to achieve 8.2% GDP growth

  • Published at 10:14 pm June 13th, 2019
Web_GDP Growth 2019-20
This year, the government is expecting a growth rate of 8.13%, with a goal to achieve a double digit growth rate by FY2023-24 Md Manik

During FY2017-18, Bangladesh had attained a 7.86% growth

Bangladesh government has set a target of 8.2% gross domestic product (GDP) growth for the next fiscal year (FY2019-20).

Finance Minister AHM Mustafa Kamal came up with the projection on Thursday while he was announcing the national budget worth Tk523,190 crore in the parliament.

He said: “Our GDP grew consistently at a very high rate in the last decade. We expect a GDP growth rate of 8.13% in the outgoing fiscal year. Our aim  is to achieve a growth rate of 10% by FY2023-24, and maintain that rate until 2041 so that we can lay a solid foundation for becoming a high income country by that time.”

To achieve this objective, the GDP growth rate was projected at 8.2% for FY2019-20, said Kamal.

Last week, the World Bank kept Bangladesh’s growth rate for the outgoing fiscal year unchanged at 7.3% with strong infrastructure spending, private investment and domestic consumption.

However, the government estimated 8.13% GDP growth for FY2018-19 to end on June 30. During FY2017-18, Bangladesh had attained a 7.86% growth.

Inflation projected at 5.5%

The government has forecast a 5.5% inflation during the 2019-20 fiscal year.

Prime Minister Sheikh Hasina announced the projection in parliament on Thursday, as she took over the presentation of the Tk523,190-crore national budget for the upcoming fiscal year.

As of March 2019, the average inflation rate stands at 5.4%, according to the data provided by the Bangladesh Bureau of Statistics (BBS). 

“The inflation rate during this year is projected at 5.5%. Our goal for the 2019-20 fiscal year will be to enhance the competitiveness in all our business sectors, including agriculture, industry, commerce, exports, real estate, and services sectors,” she said in the budget speech.

The purpose is to reduce poverty, generate employment, and attract foreign investment, the prime minister said.

The government will also adopt special measures for small and medium enterprises to facilitate the assimilation of the marginal people into mainstream development, and take steps to reduce income inequality, she further said.

The announcement for the proposed national budget for 2019-20 fiscal year began around 3pm on Thursday. 

The budget amounts to Tk523,190 crore – the biggest-ever in the country’s history.

Finance Minister AHM Mustafa Kamal began reading out his budget speech, but could not continue due to illness. 

Prime Minister Sheikh Hasina then took over from Kamal, and finished the speech. 

This was Kamal’s maiden budget.

Read the full budget speech for FY20 here.