The coordination council on resources and macro-economy on Tuesday decided to slash the size of budget considerably in January for proper implementation of the fiscal measures, officials said.
However, the council, headed by finance minister AMA Muhith, in a meeting at the secretariat turned down a suggestion to lower the country’s projected growth rate in gross domestic product at 7.2 per cent.
A planning commission member told the meeting that the government should revise the growth rate downward amid slowing down of the economic activities.
But Muhith did not agree with the view at this stage of the fiscal year, said the officials. He directed all to work sincerely for obtaining the target in the remaining seven months, they said.
World Bank, Asian Development Bank and International Monetary Fund have already termed the projected growth rate ambitious.
They said the growth in the current fiscal year will be substantially lower than the estimation because of political uncertainty over the next general election.
ADB has forecast Bangladesh’s downward economic growth at 5.8 per cent in the current fiscal 2013-14 and WB at 5.7 per cent.
The present government is scheduled to complete its current five-year tenure in January.
AMA Muhiuth had announced a total budget outlay of Tk 2,22,491 crore for the current fiscal year.
But many quarters termed the projection as highly ambitious. They said the government made lofty projections ahead of the next general election.
-With New Age input
