Finance Minister AH Mahmood Ali presented the national budget for the fiscal year 2024-25 on Thursday, expressing confidence that the government’s prudent policy measures will achieve a GDP growth of 6.75% next year and 7.25% in the medium term.

In his budget speech at the Jatiya Sangsad, Ali also projected that the inflation rate would drop to 6.5% in the next fiscal year due to the adopted policy strategies. This budget marks the first for Prime Minister Sheikh Hasina’s government in its third consecutive term following the recent general election.

Ali highlighted that the country’s GDP growth has remained robust due to effective policy implementation. From FY 2009-10 to 2022-23, the average growth rate was 6.71%, one of the highest globally. Bangladesh achieved a record GDP growth rate of 7.88% in FY 2018-19, just before the COVID-19 pandemic.

“Despite challenges such as the Russia-Ukraine war and other global unrests, Bangladesh recorded GDP growth rates of 7.10%, 5.78%, and 5.82% (provisional) in 2021-22, 2022-23, and 2023-24 respectively, showcasing the resilience of our economy,” the minister stated.

To sustain future growth, the government will continue to support agricultural and industrial production, implement significant infrastructural projects, and adopt action plans to boost export earnings and remittances.

The finance minister emphasized that loan demand and interest rates would be determined by credit supply and the relationship between bankers and customers. To control inflation, various measures are being implemented to ensure the success of the monetary policy, alongside supportive fiscal policies.

“Government initiatives like the Family Card and OMS Programmes are being strengthened to protect ordinary people from the adverse effects of high inflation,” Ali added.