Business | Economy
Dhaka forecasts record growth, more tax revenue
Record economic growth and improved tax collection in the 2006-07 fiscal year should hold Bangladesh's budget deficit in check while allowing for spending to reduce poverty, Finance Minister M. Saifur Rahman said yesterday.
- Reuters
- Published: 00:00 May 30, 2006
Dhaka: Record economic growth and improved tax collection in the 2006-07 fiscal year should hold Bangladesh's budget deficit in check while allowing for spending to reduce poverty, Finance Minister M. Saifur Rahman said yesterday.
"We hope to hit 7 per cent growth in 2006-07," said Saifur, who will release the budget in parliament on June 8. The fiscal year runs from July to June.
High target
"It would be the highest ever growth of gross domestic product," he said.
Bangladesh expects to post growth of 6.8 per cent in the current fiscal year, up from 5.5 per cent in 2004-05.
If achieved, the 2005-06 growth rate would be a record, surpassing the 6 per cent set in 1999-2000.
The budget deficit was equal to about 4 per cent of gross domestic product (GDP) in 2004-05, and Saifur was aiming to hold the deficit at the same level this fiscal year. Looking forward, he said the government would work to contain the deficit.
"Poverty alleviation and job creation would be the main focus of the 2006-07 budget", he said.
Nearly half of Bangla-desh's 140 million people still live in poverty. The government hopes to halve their numbers by 2015 under a poverty reduction strategy supported by international donors including the World Bank.
Saifur said the budget would provide increased subsidies to agriculture, and credit to farmers without collateral security.
The agriculture sector is key to Bangladesh's economy, contributing up to 20 per cent of GDP, Saifur said. It is also the country's biggest employer.
No new levies
Saifur said there would be no new taxes in the budget, but he would boost a drive to collect existing taxes more efficiently.
Revenue officials said they expected tax revenues to rise to 400 billion taka in 2006-07 from 356.52 billion taka this year.
More from Economy
More from Business
Business Editor's choice
-
DFSA chief to step down in September
Executive has been at post since 2008
-
Geepas idea blossomed in Dubai
The journey led from a small shop in Bahrain to a $1.27b company in the UAE
