However, he said that the inflation situation will be under control by taking several measures.
He cautioned that high food prices would compel the government to spend more in subsidies in public distribution.
‘And there is no indication that global food prices would come down anytime soon,’ said Muhith.
Admitting power and energy shortage as the main problem in the country now, Muhith said, ‘By the year 2012 the severe power crisis will be over but increased supply might not meet the entire demand which is growing by the day.’
The finance minister strongly criticised a recent United Nations Population Fund report which stated that the country’s population has risen by 2.2 million over the last year and now stands at around 164.4 million. ‘UNFPA is meddling into other’s business,’ he remarked.
The finance minister said that revenue collection has increased, but he admitted that remittances during the first quarter have gone down. He termed the drop in remittance ‘not a good sign’ for the economy.
Muhith said the government plans to accelerate rural development
by ensuring more electricity supply to the rural areas and by containing the pressure of demand for power in the urban areas.