Despite doubts aired by ADB and IMF over Bangladesh achieving 7 percent GDP growth this fiscal year, Finance Minister AMA Muhith is upbeat on the target.

“I believe GDP growth will be close to 7 percent and I still stick to that,” he told reporters after a pre-budget meeting with government secretaries at the NEC.

The Asian Development Bank (ADB) and the International Monetary Fund and the World Bank have their own projections, and there is nothing to argue with them over their projections, Muhith said.

Muhith claimed that the government understands better the country's economy than these development partners.

The ADB has recently projected 6.2 percent growth for Bangladesh in the current fiscal year. The IMF forecast economic growth in Bangladesh will slow to 5.5 percent in fiscal 2012, down from 6.7 percent in 2011.

Replying to a question on district budget, he said it would not be possible in the upcoming budget. “But I would like to see its start before the tenure of the present government ends.”

In response to another question on formulating a permanent pay commission for the government officials and employees in the next budget, Muhith replied in the negative and said a separate pay-scale for the state-owned banking sector is likely to be finalised this fiscal year.

He said the government might set up another commission or committee on how to get out the education sector from the normal pay scale.

On the power and energy sector, he said confusions are there about information on the power generation and demand.

He said the government would prepare a statement before the budget on power and energy that will feature what was the power and energy situation in 2009 and in between 2009-2012, how many work orders have been given to whom to what production level.

The informative statement will also feature how much work has been implemented with what quantity of additional power as well as what is the actual power demand and generation and the source of fuel resources.

The finance minister said the meeting also discussed widening the income tax net, mobilising more non-tax revenues, ensuring more aid utilisation, following the medium term budgetary framework (MTBF), the present situation of the Multi Modal Transport, progress in land digitisation, skill development, harmonising the planning process and ensuring the completion of works by contractors in time.

Citing that the progress towards land digitisation is slow, he said that there might have a programme from next year for five to 10 districts.

Mentioning that there are some 21,000 kilometres of national highways in the country, he said: “There's no need for further highways, rather the future plan should have to be on its repair and improvement.”

Muhith hoped that the public expenditure programme of the country would reach close to 20 percent might be 19 percent by the end of the tenure of the present government.

By 2050, Bangladesh will be one of the first 20 countries of the world as its people are creative, he said. “But for this the necessary preparations should have to be taken.”

The Daily Star/Bangladesh/ 16th April 2012