NEWS media reported that the government is set to cut the size of the budget for the outgoing financial year by about Tk 29,000 crore, highest in the recent years, because of poor revenue mobilisation and slow implementation of development projects. The size of the revised budget would be reduced to Tk 3,71,495 crore in 2017-18 from the original budget of Tk 4,00,266 crore. We see the economy is silently decreasing growth while the government celebrates the LDG lifting. Moreover, the efficiency of the budget implementing authorities — different Ministries and Divisions are in serious shortcomings that will lessen the ADP implementation. By slashing budget, the government tries to close the economic gap in balance sheet though the loan from banks and international lenders are exorbitant which ultimately drain to corruption.
The government had cut the size of the budget by Tk 23,000 crore in 2016-17, Tk 26,000 crore in 2015-16 and Tk 21,000 crore in 2014-15. Experts attributed the drastic budget cut to the ‘unrealistic projections of total layout’ and shortfall in revenue collection and development expenditure. They observed that implementation of the proposed revision would further raise doubt about 7.65 per cent growth of gross domestic product in the current financial year. The think-tank Centre for Policy Dialogue said that a large shortfall in revenue collection becomes unavoidable because of unrealistic fiscal framework targets. The shortfall in revenue mobilization is certain for the sixth consecutive year. According to draft revised budget, overall revenue shortfall would be Tk 28,536 crore and a revised target of the National Board of Revenue would be decreased to Tk 23,190 crore to Tk 2,25,000 crore from originally projected Tk 2,48,190 crore. The government even failed to achieve the revised target of many components of the budget. The implementation of revised budget cut down below 75 per cent in 2016 from 93 per cent in 2011 and 2012.
It is hard to understand, despite this situation, why Finance Minister AMA Muhith is preparing to announce another jumbo size budget of about Tk 4, 68,000 crore on June 7 ? We observe that this type of mammoth budge is neither implementable nor achievable. However, announcement of the big budget has some political significance to drag voters’ attention, no matter what development has achieved.
