Finance Minister AMA Muhith Thursday said the overall inflation rate of the current fiscal year will soar to around 8.0 per cent compared to 6.5 per cent of the previous year. The minister, however, did not elaborate the sector-wise inflation rates, but said the country's economy is on the right track. Mr Muhith was speaking at a pre-budget discussion with the executive committee of the Economic Reporters' Forum (ERF) in the secretariat Thursday. The government subsidy also soared significantly this year because of electricity, agriculture and petroleum crises, said the finance minister. "We must have to be cautious about the issue next year," he said. The minister was sceptical whether providing such massive subsidy will be possible in the next year. In reply to a query the finance minister said installation of high-cost diesel and furnace oil-run and rental and quick rental power plants is part of a road show to augment short-term electricity supply. Electricity generation under rental and quick rental power plants will be of less than 1,500 megawatts (mw) capacity, he said. There will be no existence of rental and quick rental power plants after two to three years, he said. The country's future energy source for electricity generation lies with coal, natural gas and liquefied natural gas, he said. ERF President Monowar Hossain, General Secretary Abu Kawser, Vice-President Shahnewaz Karim, Assistant Joint Secretary M Azizur Rahman, Finance Secretary Syful Islam, Executive Members Kawsar Rahman and Saif Islam Dilal, among others, attended the function. Speaking on the occasion Muhith also underscored the necessity for immense investments and inflow of resources from foreign countries. He was also critical of the investment pattern of the local investors. They invest Tk 20 as equity but take Tk 80 as long-term loan from the commercial banks, he said as an instance. "Borrowing for a short period and lending for long is a problem of our banks," said Muhith. The minister was also concerned over piling up of a substantial amount of unspent money, which he said, would soar to around US$ 11 billion by the end of the current fiscal year. In the past years it was hovering around $ 6.0 billion to $ 7.0 billion, he said. The finance minister was however upbeat over revenue collection saying that the revenue has moved well. This year's balance of payment position will be positive but not like that of the previous year, he said. The finance minister also said that spending against the proposed public-private partnership (PPP) will start from the next year.
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