Bangladesh Approves USD 24 Bn Fiscal Plan

Dhaka, May 18 (PTI) Bangladesh on Monday approved an ambitious 3 trillion taka (about USD 24.59 billion) annual development programme (ADP) for the next fiscal year, aiming to sustain inclusive economic growth, strengthen infrastructures, enhance social protection and accelerate climate-resilient development.

The National Economic Council (NEC), chaired by Prime Minister Tarique Rahman, approved the amount, which is over 30 per cent higher than that of the previous fiscal, which in Bangladesh is counted from July 1 to June 30.

Officials said that 63.33 per cent of the amount would be financed from state funds, and expected 36.67 per cent to be sourced from foreign loans and grants.

"Ambition is required for development," Finance and Planning Minister Amir Khosru Mahmud Chowdhury told reporters after the NEC meeting.

 
He said a "large development budget" was adopted as growth and employment were impossible without investment, and Bangladesh's "new government has faith that its implementation is possible."


Planning Commission officials said the new development budget prioritised allocations in education, health, and agriculture to ensure equitable socio-economic development and address the challenges of the Fourth Industrial Revolution.

They said the transport and communication sector received the highest overall allocation at 16.70 per cent to accelerate economic growth through infrastructure development, railway, and waterway expansion.

 
The officials said the education sector is the second-highest recipient with 15.86 per cent of the budget, followed by the health sector at 11.84 per cent and the power and energy sector at 10.90 per cent.

The development came a week after US-UK-based leading credit rating agency Fitch Ratings revised Bangladesh's outlook to "negative" from "stable", saying the scenario reflected rising external financing risks, high inflation, and pressure from the Middle East conflict on remittances.

In February, the International Monetary Fund gave Bangladesh a 'C' rating, particularly for data reliability.

But the minister expressed hope that through the government's "firm leadership, prompt decision-making, and professionalism, Bangladesh will become a major investment destination in the future".