Govt sets 7.2% GDP growth target

The government has set a target of 7.2 percent GDP growth for the next fiscal year, considering the positive results in private sector investment.

“I expect this trend to continue in the next fiscal year underpinned by our ongoing efforts in infrastructure development,” said finance minister AMA Muhith while proposing the annual budget for the fiscal year 2016-17 today at the parliament.

Both the size of ADP and its implementation rate will be stepped up. Consumption spending will also rise as public sector employees will draw their salaries including allowances as per the new pay scale, increasing the overall public investment, the minister said.

Export income and foreign remittance inflows will see a gradual rise due to the recent increase in overseas employment, Muhith added.

“Gradual fall in inflation coupled with increase in real wages and foreign remittances will boost individual consumption spending. Over and above, political stability is expected to continue.”