Levitating IQ

Posted by admin on February 21, 2018 in Articles

Executive Summary
The budget strategy of the government for the next 5 years is provided in this document. It features a multi-year
perspective of the government’s prioritizing, budgeting, and allocating of resources over the medium term. It is
thconsistent with the 6 Five Year Plan, which is presented concurrently with this budget strategy. This Medium-Term
Budget Strategy and Framework (FY 2011-12 to FY 2015-16) is set against the backdrop of global recovery from
economic recession and high domestic growth momentum, coupled with the long-term vision of achieving middle
income status by 2021.
The economy has performed well in recent years, with Real GDP growth over the last 5 years recording an average
of 6.2 percent, and expecting to reach 6.7 percent in FY 2010-11. The government targets an acceleration of real
growth to 7 percent in FY 2011-12 and to more than 8 percent by FY 2015-16 in order to set Bangladesh on the path
to become a middle income country.
Growth prospects for the Bangladesh economy are good with the turnaround in global economy and strong domestic
demand. Exports are booming, demonstrating Bangladesh’s potential to compete in international markets. High
import demand especially for industrial raw materials and capital machinery shows the confidence of the private
sector in strong future growth. Domestically, an increasing labor force coupled with a higher income level is driving
demand. Over the medium term, the manufacturing and service sectors are expected to be the main drivers of
economic expansion although the agriculture sector is also expected to grow at a respectable rate. They will satisfy
the strong external and domestic demand for Bangladeshi goods, and help absorb the growing labor force and
workers leaving the agriculture sector.
High investments are essential for the high growth strategy. According to the Medium Term Macroeconomic
Framework, national investments should increase from the current level of…