Finance Minister Abul Hasan Mahmud Ali expressed his optimism about coming down of inflation by the end of this year adding government kept the budget size small, so that pressure on the product prices reduce.

The minister said this in response to a question from reporters at the post-budget press conference at the capital's Osmani Memorial Auditorium on Friday (June 7) afternoon.

On Thursday (June 6), Finance Minister Abul Hasan Mahmud Ali placed the national budget of Tk 7, 97,000 crore for the next fiscal year (FY25) at Jatiya Sangsad (JS).

The government’s contractionary policy will continue for more times in a bid to keep the inflation within 6.5%, Finance Minister said.

“We set a target in the national budget for FY 2024-25 to achieve 6.75% GDP growth, based on the current fiscal year's growth rate of 5.82%. We will also hatch efforts to keep the inflation within 6.5% in the next fiscal year,” he said.

Inflation, the main enemy of the economy, was within 9% due to the pragmatic measures of the Awami League government, he said.   

Ali also blamed the worldwide outbreak of coronavirus, the Russia-Ukraine war, and the global foreign exchange crisis for increasing inflation in the last few years.

Amid the situation, the government will continue the contractionary measures for more sometimes to contain the inflation, one of the key challenges set in the proposed national budget for the next fiscal year, he said.

The government has already reduced the import VAT on necessary commodities to make the efforts successful, said the finance minister while addressing the press conference held at Osmani Memorial Auditorium.

He said that people from all classes and professions will be brought under the universal pension scheme in light of the policy sent in the proposed national budget.

BDST: 1726 HRS, JUNE 7, 2024
MSK