Perspective plan targets 9.9 pc GDP growth by 2041

FT ONLINE

The government has approved a new perspective plan highlighting the target to eliminate extreme poverty by 2031 and moderate poverty by 2041.

The 20 years plan set a target to achieve 9.9 percent growth of Gross Domestic Product (GDP) ensuring investment to 46.88 percent of the GDP by 2041 and increasing tax collection to 21.85 percent of the GDP.

Approval of the plan came today from the meeting of the National Economic Council (NEC), presided by the Premier Sheikh Hasina at NEC conference room in Dhaka.

Planning minister MA Mannan presented details about the new perspective plan at a post-meeting press briefing.

"The government wants to ensure transparency, good governance and to develop human capital" he said adding that the document is an outline of the economy to eliminate poverty ensuring development.

He further added, "The country's second perspective plan will guide the government to achieve the status of a developed country."

The plan has a target to grow the economy at 9 percent by 2031 and 9.9 percent by 2041.

Implementation of the plan will bring down extreme poverty to below 3 percent by 2031 and moderate poverty to below 3 percent by 2041 as well.

Dr. Shamsul Alam, a member of the General Economic Division of the Planning Commission said, "The new plan will help Bangladesh achieve the status of a developed country by 2041, raising the per capita income to $17229."

He said the new plan will put emphasis on developing skilled human resources, technology, energy, power, transportation, good governance and empowering the local governments.

According to the planning commission, the current perspective plan had a target of 38 percent investment against GDP, but it reached only 31.56 percent in the 2018-19 fiscal year. The new plan will aim at achieving 46.88 percent investment against GDP.

The domestic savings are only 28.41 percent to GDP, against a target of 39 percent.

The government wanted to achieve a 20 percent revenue target against GDP and increase the tax-GDP ratio to 17.5 percent by 2021.

But, the current tax-GDP ratio is only 9.3 percent, and the new plan will target a ratio of 21.85 percent by 2041.

Among other indicators, the government set target to increase spending on education to 4 percent of the GDP. Enrollment to technical education will reach 30 percent by 2031 and 41 percent by 2041.

The plan will help to reach average life expectancy to 80 years by 2041.