BM Desk:
The country’s inflation rate will decline below 9% by December 2023, attributing this positive outlook to the success of implemented economic policies. The Government also called for increased revenue generation to address the budget deficit and invest in key areas.
Finance Secretary Khairuzzaman Mozumder expressed optimism on Sunday that the general point-to-point inflation rate will fall to this significant level. He attributed this positive outlook to the success of contractionary monetary and fiscal policies implemented by the government.
Speaking at a seminar on VAT marking the National VAT Day, Dr. Mozumder highlighted the decline in food inflation, which decreased by 0.5% last month. He believes this trend is a strong indicator that the overall inflation rate will reach the targeted level of 7.5% for the current fiscal year (FY24). Furthermore, he expressed hope that inflation will be contained below 6% in the next fiscal year.
Acknowledging the country’s swift economic recovery after the COVID-19 pandemic, Dr. Mozumder emphasized the proactive measures taken by the government to address global challenges. He highlighted the implementation of austerity measures in public expenditure and the global recognition of Bangladesh’s macroeconomic strength.
Addressing the issue of budget deficit, Dr. Mozumder explained that the estimated deficit for FY24 is Tk. 2,61,000 crore against the total budget of Tk. 7,61,000 crore. To bridge this gap, the government is actively seeking loans from various sources.
Dr. Mozumder emphasized the importance of diversifying loan sources, prioritizing international loans over domestic ones to minimize the impact on local businesses. He acknowledged the increasing limitations on international loans and grants due to Bangladesh’s graduation from LDC status.
In light of these challenges, Dr. Mozumder urged the National Board of Revenue (NBR) to focus on increased revenue generation. He emphasized the importance of automation in establishing a strong tax culture within the country and assured the NBR of increased funding to support these efforts.
Overall, Dr. Mozumder’s optimistic outlook and focus on revenue generation offer encouraging prospects for Bangladesh’s economic stability and future growth. The government’s proactive approach in addressing inflation and fiscal challenges, coupled with the NBR’s efforts to broaden the tax base, will be crucial in ensuring the nation’s continued progress.
