Bangladesh Announces Over $16 Billion Budget To Reduce Poverty

June 11, 2009 4:55 p.m. EST

Dhaka, Bangladesh (AHN) - Bangladesh on Thursday announced a $16.49 billion national budget for the fiscal year 2009-10 aiming to reduce poverty by creating jobs across the country.

"The budget for FY 2009-10 has been formulated bearing in mind the need to maintain macroeconomic stability in the context of current global economic meltdown, achieve the desired economic growth to fulfill our election pledge and thereby contribute to poverty reduction," Finance Minister Abul Maal Abdul Muhith said in a speech while delivering the proposal to parliament.

This is the first budget of the Awami League-led alliance government, which was voted into power in December. Its top priorties are agriculture, rural and human resources development, as well as industry, trade and social safety nets, major components in the ruling party's election pledges.

The finance minister projected the gross domestic product (GDP) to grow at 5.5 percent in the coming year, down from the current fiscal year's revised estimate of 5.8 percent. Inflation in the coming fiscal is expected to ease at around 6.5 percent from the current 7 percent.

Prime Minister Sheikh Hasina was present at the budget session. Opposition leader Khaleda Zia remained absent as Bangladesh Nationalist Party and its ally Jamaat-e-Islami have been boycotting the budget session following a dispute over seating arrangements.

Muhith proposed allocating $304.34 million for the Public Private Partnership (PPP) program, which is designed to increase the flow of investment from both local and foreign investors.