Bangladesh budget to target power, infrastructure

Bangladesh is set to unveil an ambitious 19 billion dollar budget on Thursday to boost spending on infrastructure, particularly in the troubled energy sector.

The government said gross domestic product (GDP) growth slid to a seven-year low 5.54 percent in the year to the end of June 30, as the South Asian nation grapples with the worst utilities crisis in its history.

"The focus will be really on power and energy," Finance Minister A.M.A Muhith told reporters ahead of the formal presentation of the budget to parliament Thursday afternoon.

Bangladesh's financial year runs to the end of June, but the government published the growth figures ahead of the budget.

Muhith said the budget would be around 1.32 trillion taka (19.09 billion dollars), up 20 percent from last year, with the increased spending going to power generation, gas production and infrastructure, including roads.

"If we want more investment, we have to improve the power and energy sectors," he said.

Continued public support for the government, which came to power after a landslide win in December 2008 elections, will depend on its ability to resolve the energy crisis, Muhith added.

AFP