Finance Minister A M A Muhith said Monday the annual GDP growth for the current fiscal year (FY), 2013-14, will not be less than 6.3 per cent.
"The economy has performed very well despite adversaries during the first six months of this fiscal. The export saw a double-digit growth, remittance flow was good, and reserve situation was also very well. The capital market was completely stable during the last two years."
He said the priorities of the new government are to eliminate corruption at banking and insurance sectors as well as ensure a vibrant capital market.
Awarding Padma main bridge construction work, establishment of a rural savings bank, and approval of the Financial Reporting Act would be the major tasks that the government will undertake within the next six months.
The minister said these after a meeting with chairmen and managing directors of all state-owned banks, Bangladesh Bank governor, and chairmen of Bangladesh Securities and Exchange Commission (BSEC) and Insurance Development Regulatory Authority (IDRA).
A M A Muhith said the import growth declined a bit, which is better for the economy. "The budget for the current fiscal is under revision, as the 7.2 per cent growth projection was ambitious."
The government will now revise the budget on the basis of fresh growth projection, he added.
Replying a question on low growth projection by the donor agencies the minister said international agencies like the International Monetary Fund (IMF) or the World Bank always project growth at a lower rate. The government had set an ambitious growth target in FY 2012-13 on the basis of the previous fiscal's achievements.
"But last year the government revised the budget from Tk 1.79 trillion to Tk 1.74 trillion. The National Board of Revenue (NBR) also fell short from the revenue target."
The main strength of the present government is that during the last five years the economy achieved over six per cent growth for four years, Mr Muhith said.
He said the previous Awami League-led government had a long-term preparation for such an economic momentum, and it had contact with public and other stakeholders.
"Now our promise is to turn the country into a middle-income one within this five-year term."
Replying a question regarding the present government's tenure the minister said, "It does not matter how many days the government stays in power, but we should set a programme for five years."
About insurance sector he said insurance is the 'weakest' and most 'corrupt' sector in the country, which the government will regulate in strong hand.
"The country has 76 insurance companies, over which there was no control. Insurance was a sector of looting. The naughty companies filed over 50 cases against the government measures."
Mr Muhtih said there were 'theft and embezzlement' in banking sector, adding that sometimes misappropriations took place by keeping the banks' board of directors at bay.
He said the central bank is preparing necessary directives to stop misappropriations.
Terming default loans as a theft the finance minister said these should be reduced significantly.
He said elimination of corruption cannot be achieved by awarding punishment, but corruption can be reduced by developing system.
The minister said the banks' exposure to individuals, sectors and areas needs to be balanced.
