Finance Minister’s Optimistic Outlook on Post-Budget Economic Activity and Inflation Control
Finance Minister Abul Hassan Mahmood Ali recently expressed optimism at a post-budget press conference, claiming that the government’s measures will help bring down inflation and spur economic activity. In a detailed briefing at the Osmani Memorial Hall in Dhaka, the finance minister outlined the steps taken in the proposed 2024-25 fiscal budget to address the country’s economic challenges.
One of the key priorities highlighted by the finance minister is the need to tackle inflation, which has been on the rise for the past 14 months. The government has set a target of reducing inflation to 6.5 per cent, down from the current near-double-digit high. Minister Ali assured that inflation will begin to decline by the end of the year, attributing the recent spike to external factors such as the war in Ukraine.
To combat inflation, the government has proposed tax waivers on essential goods and services to ease the burden on consumers. Additionally, measures such as widening the Open Market Sale (OMS) activities for the poor and implementing a contractionary monetary policy have been put in place to contain price rises.
In response to questions about foreign exchange reserves and borrowing targets, the finance minister and his team emphasized the need to rely on domestic sources and improve revenue-earning performances. The government has also taken steps to reduce tariffs on key essentials and import goods like onions to stabilize prices in the market.
Despite challenges such as higher corporate taxes and revenue generation, the National Board of Revenue (NBR) chairman highlighted the importance of maintaining tax incentives for the stock market to stimulate economic growth. The finance minister and his team also addressed concerns raised by the Economic Reporters Forum (ERF) regarding access to information from the central bank.
Overall, the post-budget press conference highlighted the government’s commitment to addressing economic challenges and fostering growth in the coming fiscal year. With a focus on controlling inflation, boosting economic activity, and improving revenue generation, the finance minister expressed confidence in the measures outlined in the budget to steer the country towards a path of sustainable development.
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