• Saturday, Sep 26, 2020
  • Last Update : 04:58 pm

Budget FY21: Bangladesh aims to keep inflation under 5.4%

  • Published at 04:32 pm June 11th, 2020
Inflation
Photo: BIGSTOCK

The finance minister has proposed a national budget of Tk568,000 crore for the FY2020-21, biggest in the country's history

The government aims to keep inflation limited to 5.4% in the coming 2020-21 financial year, amid a global economy that is badly shaken because of the Covid-19 pandemic.

“Our GDP grew consistently at an increasing rate in the last decade. We achieved a GDP growth of 8.15% in the FY2018-19, the highest among the countries in Asia,” Finance Minister AHM Mustafa Kamal said while presenting the proposed budget for the next fiscal in parliament on Thursday.

“Strong domestic demand has been the main driver of our growth. However, due to the fall in exports and lower than expected growth in remittances as a result of long and sustained worldwide lockdowns arising from the impact of Covid-19, the GDP growth rate of the current fiscal year has been revised downward at 5.2%.

“However, in view of the post-Covid-19 recovery, the growth rate is projected at 8.2% for FY 2020-21 in line with the long-term plans. We expect that inflation will be 5.4% during the period,” he said.

The minister made the remarks while tabling a national budget of Tk568,000 crore for the FY2020-21, biggest in the country's history, in a bid to drive the government's efforts to salvage the economy battered by the Covid-19 epidemic and safeguard public health.

The proposed plan is 13% higher over the revised outlay for the outgoing fiscal year and is 8.56% higher than the main budget for FY2020.

Without foreign grants, the budget deficit will widen to a record Tk190,000 crore or 6% of the gross domestic product (GDP).

According to the Bangladesh Bureau of Statistics (BBS), the monthly inflation rate, calculated on the basis of a consumer price index (CPD), dropped to 5.35% in May 2020 from 5.96% in the prior month. It was the lowest inflation rate since December 2018.

The food inflation rates declined in the last month to 5.09% in May from 5.91% in April.

Non-food inflation stood at 5.75% in the past month which was 6.04% in April.

The inflation rates for rural and urban areas were 5.65% and 4.81%, below April's figures of 6.08% and 5.73%, respectively, according to BBS.

In January 2020, the inflation rate was 5.75%, which was 5.46% in February and 5.48% in March.

56
53
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail