Finance Minister Abul Hassan Mahmood Ali expressed optimism that the country's GDP growth will reach 6.75 per cent in the upcoming fiscal year and 7.25 per cent in the medium term.
He conveyed this outlook during his closing speech on the proposed budget for the fiscal year 2024-2025, delivered at the parliamentary session chaired by Speaker Shirin Sharmin Chaudhury on Saturday.
Mahmood Ali said, "While there is a need to adopt contractionary policies to control inflation, it is undeniable that in the long run, this approach can slow down growth. But we need continuous high growth to build a developed, prosperous, smart Bangladesh by 2041.
"In that regard, we framed this budget with the difficult challenge of balancing the seemingly contradictory goals of achieving economic stability and sustaining growth. We strongly hope to bridge the gap between means and capabilities and return to the path of high growth soon," he added.
Pointing out that the average GDP growth for the last decade and a half has been more than 6.7 per cent, Mahmood Ali stated, "Bangladesh is now the world's 33rd largest economy in terms of GDP as of 2023. Bangladesh Awami League has prepared the election manifesto with the conviction of building an 'Advanced-Rich-Smart Bangladesh' by 2041."
The finance minister also highlighted that the ruling party's election manifesto this year prioritises 11 key issues. Regarding resource mobilisation, the budget strategically focuses on achieving the priorities outlined in the manifesto.
"For this purpose, we have made necessary allocations in the proposed budget for the creation of necessary infrastructure, employment creation, skill development, use of modern technology, encouraging research and innovation, increasing productivity, dealing with the effects of climate change, etc," he expressed.
Compared to the revised budget of FY24, the total allocation in the budget of FY25 has increased by 11.6 per cent. However, the allocation to the education and technology sector has increased by about 25 per cent, and the health sector has increased by 39 per cent.
The finance minister added, "In the proposed budget, we have tried to provide necessary allocations in education, health, agriculture, local government and rural development, electricity, communication, science and technology, etc, to build a smart Bangladesh. Besides, we have given due importance to ensuring food safety."
Mahmood Ali further states, "We aim to increase employment by making maximum use of the favourable and supportive environment created for industrialisation and domestic and foreign investment in the country.
"Moreover, we have adopted a plan to implement 110 reforms under the Bangladesh Investment Climate Improvement Program (BICIP) from 2024-25 to 2026-27 to facilitate business."
He also mentioned that the government is working towards establishing 100 economic zones.
"In the proposed budget, we plan to mobilise resources on a priority basis for investment and employment-supporting infrastructure development. As a result of these initiatives, we expect GDP growth to reach 6.75 per cent in the next financial year and 7.25 per cent in the medium term."
