Inflation to come down below 9% within Dec: Finance Secy
The way the prices of food items have declined last month, I'm hopeful that the inflation rate would come down below 9% within this December, said Khairuzzaman Mozumder.
Finance Secretary Dr Md Khairuzzaman Mozumder today expressed his optimism that the inflation rate would come down below 9% within this December.
"The lone challenge before our economy is now to control inflation. But, through contractionary monetary and fiscal policy, we've been able to overcome that to a large extent. The way the prices of food items have declined as the food inflation was reduced by 0.5% last month, I'm hopeful that the inflation rate would come down below 9% within this December," he said.
The finance secretary said this while addressing a seminar on VAT marking the National VAT Day held at the NBR Bhaban in the capital's Agargaon area.
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Dr Mozumder also hoped that the general point to point inflation rate would remain within the fiscal target of 7.5% in the current fiscal year (FY24) while the target for containing inflation in the next fiscal year would remain below 6%.
Noting that the country's economic recovery during the post Covid-19 period was fast, he said, "We've taken some contractionary measures beforehand in the wake of various global challenges. Austerity is being pursued in public expenditure while the macroeconomic strength of Bangladesh is also being lauded across the globe."
Mentioning that the estimation for deficit budget in the current fiscal year is Tk2,61,000 crore against the overall budget size of Tk7,61,000 crore, Dr Mozumder said the government has to take loans from various sources to meet the budget deficit in this regard.
He said that the government is trying to take loans from various international sources rather than relying on domestic sources so that the local businesses are not affected.
"But, we'll have to keep in mind that the limitations on taking international loans and grants will continue to grow considering our graduation from the LDCs," he said, urging the NBR to become more attentive in generating more revenues.
Citing that automation is very much important for creating a tax culture in the country, the Finance Secretary said that the government would allocate more funding to the NBR for pursuing the efforts towards automation.
