Kamal sets a bullish 5.2pc GDP growth target for this fiscal year

Bangladesh would be logging in the highest growth among the South Asian nations if the revised growth target of 5.2 per cent can be achieved this fiscal year, said Finance Minister AHM Mustafa Kamal in parliament yesterday.

The government was originally gunning for an 8.2 per cent GDP growth for fiscal 2019-20 but has now brought it down owing to the devastating impact of the coronavirus pandemic.

But the new revised down target differs widely from both the World Bank and the International Monetary Fund's projections, which forecasted GDP growth for this fiscal year at 1.6 per cent and 3.8 per cent respectively. In line with the new target, the total size of the GDP was also revised at Tk 28,05,700 crore from Tk 28,85,872 crore initially.  

Meanwhile, the Jatiya Sangsad yesterday passed the supplementary budget of Tk 46,516.11 crore for fiscal 2019-20 to meet the increased expenditure after different ministries, divisions and institutions sought additional amounts.

According to the supplementary budget, allocations for 26 ministries and divisions rose to Tk 46,516.11 crore, while allocations of Tk 18,353.97 crore were slashed for 35 ministries and divisions.

The finance division got the highest allocation of the additional financing of Tk 36,356.45 crore, while the Chittagong Hill Tracts Affairs ministry received the lowest Tk 1.54 crore. In his concluding speech on the supplementary budget, Kamal said in the wake of the pandemic, the proposed budget for fiscal 2020-21 prioritised saving lives and livelihoods.

He called the fiscal plan a budget for all. "This is not only an economic budget but also a humanitarian budget. We'll have to save all."

Unlike previous years, the government would spend first to save people and then think about revenue collection, he said.

About the supplementary budget, Kamal said the government re-fixed the revenue collection, expenditure and deficit targets this year following the economic shock caused by the pandemic.

An additional Tk 3,605 crore was allocated to the health ministry, the disaster management ministry, the security services division and the defence ministry.

The Prime Minister's Office got an additional Tk 214.73 crore, the cabinet division Tk 59.88 crore, the Supreme Court Tk 3.39 crore, the Election Commission Secretariat Tk 298.58 crore, the Public Service Commission Tk 18.30 crore, the Economic Relations Division Tk 65.10 crore and the planning division Tk 379.55 crore.

The implementation monitoring and evaluation division got Tk 53.34 crore, the statistics and information management division Tk 290.60 crore, the defence ministry Tk 454.90 crore, the armed forces division Tk 92.58 crore, the public security division Tk 294.12 crore, the social welfare ministry Tk 12.79 crore and the women and children affairs ministry Tk 39.98 crore.

The labour and employment ministry was given Tk 53.96 crore, the housing and public works ministry Tk 842.99 crore, the religious affairs ministry Tk 527.42 crore, the local government division Tk 2,808.31 crore, the industries ministry Tk 450.19 crore, the textile and jute ministry Tk 559.48 crore, the energy and mineral resources division Tk 494.57 crore, the water resources ministry Tk 837.14 crore, the disaster management and relief ministry Tk 1,232.53 crore and the shipping ministry Tk 73.27 crore.