Bangladesh's $71 billion budget targets digital economy and cashless society.
-
Loading... - Abadiano Darna
- 05 Jun 2023
- 74 Views
- 0 Like
- 0 Comment
The Bangladeshi government revealed an unprecedented national budget of 7.62 trillion taka (equivalent to 71 billion U.S. dollars) for the fiscal year 2023-24, commencing in July.
The annual budget presented by Finance Minister AHM Mustafa Kamal, under the leadership of Prime Minister Sheikh Hasina's government, aims to achieve an economic growth rate of 7.5 percent. The budget primarily focuses on addressing inflation, fostering job creation, embracing the fourth industrial revolution, and advancing the concept of a "Smart Bangladesh."
During the budget speech in parliament, Kamal expressed optimism, stating, "Overall, we anticipate a return to a higher growth trajectory and aim to achieve a 7.5-percent GDP growth in the upcoming fiscal year. This will be accomplished through investments in productive sectors, stimulating productivity, and bolstering domestic demand."
The expenditure budget for the fiscal year amounts to 15.2 percent of Bangladesh's gross domestic product (GDP). To attain the growth target, Kamal emphasized gradually moving away from contractionary policies and investing in ongoing and new growth-inducing projects, including mega-projects.
To this end, the budget for the next fiscal year sets an ambitious goal of raising public investment to 6.3 percent of GDP. The government remains committed to curbing the rising trend of inflation by addressing supply-demand inconsistencies.
The proposed budget outlines a target average inflation rate of 6.5 percent for the upcoming fiscal year. Kamal acknowledged the recent surge in prices, primarily influenced by external factors such as the Russia-Ukraine conflict. Nevertheless, the government is making a concerted effort to combat inflation and minimize its impact on the population.
Kamal reassured, "Due to the decline in global fuel, food, and fertilizer prices, along with the adjustment of fuel prices in the domestic market and government initiatives to maintain normal food and supply systems, inflation will remain under control in the next fiscal year. We expect the annual average inflation rate to hover around 6 percent."
Despite geopolitical risks, the proposed budget for the 2023-24 fiscal year represents a 12.34 percent increase over the original budget of the previous fiscal year. The overall budget deficit is estimated to be 2.58 trillion takas, equivalent to 5.2 percent of GDP.
The projected total revenue surpasses 5 trillion takas. In terms of expenditures, the Annual Development Program (ADP) for the next fiscal year is set at 2.78 trillion takas, with significant allocations for transport, power, infrastructure, rural development, and education sectors.
This budget marks a significant milestone for Bangladesh, as it is the largest ever recorded, far exceeding the initial budget of 7.86 billion takas (equivalent to 73 million dollars) for the 1972-73 fiscal year.
The overarching theme of the budget centers around the vision of a "Smart Bangladesh," aiming to establish a fully digital economy, promote science and technology literacy, and transition towards a paperless and cashless society.
