GDP in the next budget will be 8.2 percent

Senior Correspondent,
Finance Minister AHM Mostofa Kamal, Collected Photo

Finance Minister AHM Mostofa Kamal, Collected Photo

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Dhaka ( In the next budget of 2019-20 fiscal year the Gross Domestic Product (GDP) growth has been estimated at 8.2 percent while at the end of the current year it is expected to be 8.13 percent. Government is also planning to bring one percent people under tax net to enhance the GDP ratio by one percent.

At present 11 percent people of the country pay income tax while 14 percent people pay taxes to government in different way. Government thinks that this percentage should be 20 percent. To implement this a five year plan has been taken up.

These were discussed in the coordination council meeting of resource management committee of budget and financial currency and currency exchange rating matters. The meeting was chaired by Finance Minister AHM Mostofa Kamal. It was also attended among others by Finance Secretary Abdur Rouf Talukdar, Bangladesh Bank Governor Fazle Kabir and concerned Ministers, secretaries and other high officials. 

It was decided in the meeting that there will be attempts to keep the inflation within 5.2 percent. The size of the coming budget will be about Taka 5 lakh 25 thousand crore. Of it, the revenue earnings will be 3 lakh 72 thousand crore. Emphasis will be given on rural development. The on going mega projects will be given priority in the next fiscal year.

This estimated budget will be the biggest one so far. The estimated revenue earnings has been fixed at Taka 3 lakh 72 thousand crore. Of it, estimated NBR earnings has been fixed at Taka 3 lakh 20 thousand crore. The income beyond NBR purview has been estimated at Taka 14 thousand crore. The revenue income beyond taxes has been fixed at Taka 38 thousand crore.

This is the first meeting of the coordination council of Finance Minister AHM Mostofa Kamal who will place his first budget as Finance Minister. The Minister expressed his annoyance about the revenue sector of the budget.

The growth rate of NBR in last seven months is only 7.1 percent which was 15.64 percent in the last year. The total of national economic growth and inflation shows that the actual growth of NBR is negative which will create an adverse impact on the budget. This will enhance the deficit at an alarming rate.

A meeting source informed that the default loan of banking sector, the deficit in NBR earnings, negative impact of expatriate income, foreign exchange matters, implementation of the overall budget and the estimated budget matters were discussed in the meeting. The Finance Minister laid stress on how the private investment can be enhanced.

It was discussed in the meeting to open Robot manufacture subject in the universities to invent Robots in order to deploy those in the mills and factories. This will help to go together with the modern world. Besides, the Finance Minister also laid importance in enhancing the quality of education in the country. 

It was discussed that in the coming budget GDP deficit will be within five percent when the government will take loans from the banking sector relatively less which will bring dynamism in the private investment. If the ongoing mega projects can be completed in time then enough employment opportunities will be created which will contribute greatly in GDP.