Bangladesh PM for contractionary budget, inflation check

14 May '24

1 min read

Bangladesh PM for contractionary budget, inflation check

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Insights

Sheikh Hasina directed Finance Ministry to formulate contractionary budget for upcoming fiscal year to control inflation.
During a meeting with officials from Finance Ministry, Bangladesh Bank, and NBR, Hasina mentioned developed countries like US and Japan increased their policy interest rates to curb inflation and suggested similar measures for Bangladesh.

Prime Minister Sheikh Hasina has issued directives to the Finance Ministry during a recent meeting, emphasising the formulation of a contractionary budget for the forthcoming fiscal year to tackle inflation.

Noting strategies adopted by developed nations like the United States and Japan, where policy interest rates were increased to combat inflation, Hasina urged similar measures in Bangladesh.

During the meeting, Hasina underscored the importance of prioritising commitments outlined in the government’s election manifesto for the upcoming budget even as she stressed the continuation of existing austerity measures across various ministries and divisions.

Furthermore, Hasina instructed the National Board of Revenue (NBR) to expand its tax base rather than burdening existing taxpayers, while also calling for measures to enhance revenue collection.

Expressing discontent over import of luxury goods, she specifically mentioned her dissatisfaction with items like plastic flowers.

In addition, Hasina urged the Finance Ministry to consider expanding the reach of social safety net programmes to benefit more citizens.

ALCHEMPro News Desk (DR)

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