BSS-57 Kamal eyes 8.5pc GDP growth in next fiscal

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ZCZC

BSS-57

KAMAL-PRE BUDGET-MEETING

Kamal eyes 8.5pc GDP growth in next fiscal

DHAKA, March 19, 2019 (BSS) – Finance Minister AHM Mustafa Kamal today said
that the budget for the next fiscal year (FY20) is likely to set a target of
8.5 percent GDP growth rate.

“We’re working on our budget for the next fiscal year and we’re likely to
set 8.5 percent GDP growth target for the next year (2019-2020),” he said
while briefing reporters at the NEC Conference Room this evening after
holding a pre-budget meeting with the country’s famed economists and
professionals.

The finance minister hinted that the budgetary allocation against the mega
projects would increase in the next year so that those could be implemented
in a speedy manner.

Besides, he informed that special allocation would be kept in the budget
against special projects on “Amar gram Amar shohor’ and for creating
employments for the youths through imparting them necessary education and
training.

Kamal said a detailed study is being carried out and based on that study
educational institutions would be brought under the Monthly Pay Order (MPO)
system in phases.

Besides, the minister also informed that the National Board of Revenue
(NBR) would be further strengthened and the social safety net programmes are
likely to get more allocation.

Earlier in his inaugural speech, he said that those who are capable of
paying tax would be brought under the tax net.

Besides, reforms would be carried out in those sectors which deemed
necessary side by side the Income Tax Act, VAT Act and the Customs Act would
be further simplified.

Mentioning the trend of giving long-term loans by the banks and financial
institutions after receiving short-term deposits, he said investment in the
bond market would be encouraged in this regard to provide long-term
financing.

To address the Non Performing Loans, Kamal said the number and amount of
these sorts of loans would be further reduced through forming an Asset
Management Company.

The finance minister also reiterated that simple interest rate would be
charged instead of compound interest rate.

He also stressed the need for further raising the Tax-GDP ratio as it is
still below in Bangladesh compared to the other neighboring countries.

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