In 2011-12 fiscal Bangladesh is expected to export goods and services worth 25.7 billion dollars, which will be 14.5 percent more than 2010-11 fiscal. In 2010-11 Bangladesh is estimated to earn 22.4 billion dollars from its exports which was 38 percent more than 2009-10 fiscal.
Bangladesh Budget 2011-12: Highlights and Possible Impact
In 2011-12 Bangladesh s imports are projected to amount to $35.4 billion, which represents an increase of 14 percent from 2010-11 fiscal, when goods and services worth 31 billion dollars were imported. The growth rate in imports for that fiscal has been pegged at 45%.
In the upcoming fiscal Bangladesh will receive remittances worth 12.7 billion dollars, which will be 10 percent more than 2010-11 fiscal when remittances amounting to $11.5 billion were provided to the south Asian economy. The growth rate for that financial year was 5%.
The current account balance of Bangladesh in 2011-12 will be reduced by 0.2 billion US dollars and this will comprise 0.2 percent of the GDP.
In 2010-11 fiscal Bangladesh s foreign account balance went down by $0.3 billion and it accounted for 0.3% of the GDP.
In 2011-12 fiscal Bangladesh s foreign exchange reserves will amount to 11.6 billion US dollars compared to the $10.7 billion at the end of the 2010-11 fiscal.
The national government could take some harsh steps to control inflation. It can deduct optional public expenditure such as the subsidies and focus on increasing revenues.
The credit and money supply available to the private sector could also be reduced and the exchange rates could be realigned for the same purpose.
The government expects to generate 2194 megawatts of electricity in 2011 and 2157 megawatts in 2012.
This is supposed to get up to 2674 megawatts in 2013, followed by 2323 megawatts in 2014 and 2350 megawatts in 2015.
Bangladesh Budget 2011-12: Fiscal Policies
The monetary policies of Bangladesh are primarily focused on maintaining inflation at manageable levels and providing credit and financial supply that helps in quicker and more inclusive economic growth.
The national government gives a lot of emphasis on increasing mass participation in economic operations and increasing the credit available to the small and medium enterprises, and the agricultural sector.
The Bangladesh Bank takes steps that are necessary to ensure that the money markets have sufficient liquidity and this is done by relaxing the credit flow to these markets. The private sector has recently seen a lot of growth in credit availability and this in turn, has helped make the regional investment set-up a better one.
Bangladesh focuses on maintaining a continued supply of food grains to the economically backward sections in the rural sector as they are aware of their increased exposure to inflation. The government has been selling rice in open markets to address the food security issue properly.
The central administration has also closely monitored monetary supply so that additional inflow does not increase the present inflation rates. The Bangladesh Bank has also upped the Cash Requirement Reserve and Statutory Liquidity Ratio in the previous fiscal for this purpose. The government is hopeful that these measures will have a long-term impact on inflation.