The current deficit remains higher than the norm prior to the outbreak of the COVID-19 pandemic: the deficit averaged 3.5 per cent of GDP in FY15-FY19.
A potentially huge global supply-side shock may reduce growth and push up inflation, affecting the post-pandemic recovery, the document said.
The Bangladesh government recently said it wants to reduce the budget deficit back within 5 per cent of the gross domestic product (GDP) by the 2024-25 fiscal (FY25) from 5.5 per cent now. An official budget document projected the budget deficit for FY24 at 5.1 per cent. The revised deficit in FY22 was 5.1 per cent. The deficit for FY21 was 3.7 per cent.
The size of the country’s GDP for FY23 is Tk 44,49,959 crore, the document said. It will be Tk 49,91,337 crore for the FY24 while Tk 56,06,269 crore for FY25.
To mitigate the budget deficit, the government would bank on internal resources, he said.
The 12-month average inflation in the country was 5.6 per cent for FY21. Considering the inflation scenario of trade partners, inflation projection for FY22 is as high as 5.8 per cent and 5.6 per cent for FY23, Bangladeshi media reported.
Point-to-point inflation on the other hand, is moving higher to 6.29 per cent on March 22 which was 5.56 per cent in the previous year.
Fibre2Fashion News Desk (DS)
