Inflation rate to be kept at 5.3pc

Rafikul Islam

The government has targeted to keep the average inflation rate at 5.3 per cent in fiscal 2021-22 as part of the efforts to tackle the price spiral amid the Covid-19 pandemic in the country.

Finance Minister AHM Mustafa Kamal hoped to keep the inflation rate to a single digit in his proposed budget of Tk 6,03,681 crore for FY 2021-22 in parliament.

According to data from the Bangladesh Bureau of Statistics (BBS), inflation went up to 5.56 per cent in April this year. However, the key economic indicator was capped at 5.4 per cent in the fiscal year 2020-21.

“We set a 7.2pc Gross Domestic Product (GDP) growth target for the fiscal year 2021-22 considering a longtime economic recovery plan. We hope the inflation will be at 5.3 per cent,” he also said.

However, out of the total budget, Tk 3,78,357 crore is allocated for expenditure and the rest Tk 2,25,324 crore for development purpose.

Meanwhile, the overall budget deficit is set at 6.2 per cent of the GDP for FY 2022.