Dhaka, Dec 19 (402 zia hall du)
Finance minister A M A Muhith has admitted that the
economy is under severe inflationary pressure and pointed to the fuel and
fertiliser subsidies.
He also blamed several internal policies for the tight situation at the launch of a workshop at a city hotel on Monday.
"The country's economy is facing troubles because of excessive inflation. It can't be said that the inflation has been there only for the international price situation. Rather, several internal policies are also responsible for this," he said.
According to the Bangladesh Bureau of Statistics (BBS), the inflation on a point-to-point basis was 11.58 percent in November and 11.42 percent in October.
Responding to criticisms by opposition BNP and concerns by economists over the state of economy, the minister had earlier said that he was concerned about investment and trade balance, not inflation. Prime minister Sheikh Hasina had also said that the country's economy was doing fine.
On Monday Muhith admitted that the allocation for subsidies in the budget, which was 2.7 percent of GDP, is increasing.
He mentioned subsidies given to the power sector and said, "The amount of subsidies increased more than the target. The main reason is the delay in adjustment of prices of fuel oil and power. But the subsidies helped develop the industries and increased domestic production."
He mentioned that the subsidies in the fertiliser sector has gone 'very much higher' than the target.
"More coordination is needed in the country's monetary and financial policies for sustainable growth and development," Muhith said.
Bangladesh Bank governor Atiur Rahman said, "Such a workshop will increase the skills of officials in monetary management and policy making."
The United Nation's resident representative Stephen Prisoner, UN official Ainul Hasan, Bangladesh Bank deputy governor Ziaul Hasan Siddiqui, among others, spoke in the programme.
The central bank, UN DESA and UNESCAP jointly organised the four-day workshop The reason behind inflation: Alternative policy and structure for stable growth and effective development .
Representatives from 18 countries and the World Bank, IMF, Asian Development Bank, researchers and diplomats are taking part in the workshop. source : bdnews24bd
He also blamed several internal policies for the tight situation at the launch of a workshop at a city hotel on Monday.
"The country's economy is facing troubles because of excessive inflation. It can't be said that the inflation has been there only for the international price situation. Rather, several internal policies are also responsible for this," he said.
According to the Bangladesh Bureau of Statistics (BBS), the inflation on a point-to-point basis was 11.58 percent in November and 11.42 percent in October.
Responding to criticisms by opposition BNP and concerns by economists over the state of economy, the minister had earlier said that he was concerned about investment and trade balance, not inflation. Prime minister Sheikh Hasina had also said that the country's economy was doing fine.
On Monday Muhith admitted that the allocation for subsidies in the budget, which was 2.7 percent of GDP, is increasing.
He mentioned subsidies given to the power sector and said, "The amount of subsidies increased more than the target. The main reason is the delay in adjustment of prices of fuel oil and power. But the subsidies helped develop the industries and increased domestic production."
He mentioned that the subsidies in the fertiliser sector has gone 'very much higher' than the target.
"More coordination is needed in the country's monetary and financial policies for sustainable growth and development," Muhith said.
Bangladesh Bank governor Atiur Rahman said, "Such a workshop will increase the skills of officials in monetary management and policy making."
The United Nation's resident representative Stephen Prisoner, UN official Ainul Hasan, Bangladesh Bank deputy governor Ziaul Hasan Siddiqui, among others, spoke in the programme.
The central bank, UN DESA and UNESCAP jointly organised the four-day workshop The reason behind inflation: Alternative policy and structure for stable growth and effective development .
Representatives from 18 countries and the World Bank, IMF, Asian Development Bank, researchers and diplomats are taking part in the workshop. source : bdnews24bd
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