Economists termed ‘unrealistic’ the 7.3-per cent GDP growth target the finance minister, AMA Muhith, on Thursday announced in the proposed budget for the fiscal year 2014-15 despite his failure to achieve growth targets set in the previous three budgets.
Muhith in his speech for the proposed budget in the parliament said that he expected 7.3 per cent growth in the next fiscal year as the investment, export and remittance flows would increase due to an accelerated growth of global economy.
Besides, he hoped that the country’s weather and political situation would remain favourable.
Former interim government’s finance adviser Mirza Azizul Islam, however, termed the 7.3-per cent growth target unrealistic considering the lack of investment, especially from the local businesses, in the country.
‘The private sector investment has dipped in recent months following political unrest and uncertainty. I don’t think the GDP target of 7.3 per cent can be achieved with the present investment situation,’ he said.
Muhith targeted 7.2 per cent GDP growth in the outgoing fiscal year 2013-2014 but as per the Bangladesh Bureau of Statistics the growth would be 6.12 per cent.
Moreover, economists have already expressed doubt about the 6.12-per cent growth estimate of the BBS saying that the growth would be below 6 per cent.
Muhith on Thursday said that an investment-friendly monetary policy would be maintained, ensuring uninterrupted credit flows to the productive sectors for achieving 7.3 per cent growth.
Bangladesh Institute of Development Studies research director Zaid Bakht told New Age on Thursday that it would be a tough job to achieve the 7.3-per cent GDP growth as the government had not taken initiative much in its proposed budget to boost the private sector.
He said, ‘The government took a higher GDP growth target in the last three years but it was far away to reach the targets.’
The country’s private sector is now facing energy shortage and non-availability of bank loans to stimulate production which ultimately hit the GDP growth, he said.
In the proposed budget, the government has taken some initiatives to provide incentive to the private sector, but it is not enough to achieve the proposed GDP growth.
Besides, political uncertainty is still persisting which will also weaken the confidence of the businesspeople and put an adverse impact on the proposed GDP growth, he said.
Dhaka University economics professor MA Taslim said there was fear among many of the businesses that there would be big political unrest in the next fiscal year.
‘That’s why investment situation in the country is not good and that will dent the GDP growth,’ he said.
-With New Age input
