Kazi Zahidul Hasan :
Finance Minister AMA Muhith on Thursday placed a Tk 4,64,573 crore proposed national budget proposals for fiscal (2018-19) in Jatiya Sangsad targeting an economic growth of 7.8 percent.
He started placing the national budget themed, “Bangladesh on Pathway to Prosperity,” at 1.00 pm in the house in presence of Prime Minister Sheikh Hasina and Opposition Leader Begum Rawshan Ershad.
Muhith, who made history in placing his 12th budget in Jatiya Sangsad, in his budget speech said, ” I am presenting the budget at such a time which is simultaneously the best phase of Bangladesh’s economic success and the last budget of the ruling Awami League government’s consecutive second term.”
“The average economic growth rate hit over 7.0 per cent in the last couple of year and the economy is expected to grow at 7.65 per cent in the outgoing fiscal year 2017-18 based on pragmatic economic policies undertaken by Prime Minister Sheikh Hasina led Government,” said Muhith.
He added, “Our government’s enviable capacity for rapid implementation of socio-economic development plans has already been proved. It is not merely our claim; it is an internationally recognized fact. The country, which was disregarded as ‘bottomless basket’, is now globally considered as a development miracle. Bangladesh’s socio-economic achievement is a global role model.”
However, the proposed budget focuses on promoting economic growth, maintaining fiscal discipline, boosting exports
gearing up investment for job creation and striding the people-friendly policies for ensuring socio-economic prosperity.”
He said the budget has laid prime focus on human resource development and infrastructure while enhance allocations for social safety net proposed for providing maximum relief to vulnerable segments of the society.
Muhith said the total outlay of the proposed budget for the next fiscal year is Tk 4,64,573 crore (18.3 percent of GDP), up by 16 per cent over that of the original budget of the outgoing fiscal year 2017-18.
Of the total expenditure outlay, Tk 3,39,280 crore (13.4 per cent of GDP) is estimated to come from revenue receipts.
According to the proposal, the overall budget deficit will be Tk 1,25,293 crore, which is 4.9 per cent of GDP. Of this an amount, of Tk 54,067 crore (2.1 per cent of GDP) will be financed from external sources while an amount of Tk 71,226 crore (2.8 per cent of GDP) will be financed from domestic sources.
Of the domestic sources, Tk 42,029 crore will be borrowed from banking system while Tk 29,197 crore will come from National Savings Schemes and other non-bank sources.
The proposed budget has set a revenue collection target of Tk 2,96,201 crore (11.7 per cent of GDP) for the National Board of Revenue (NBR) and Tk 9,727 crore from non-NBR sources. Besides, the collection from non-tax sources is estimated at Tk 33,352 crore.
“It is essential to collect adequate revenue from internal sources to continue current economic progresses,” said Muhith adding, “We have emphasized on collection of revenue not by increasing tax rate but through expansion of tax base and encouraging self-compliance by reforming existing tax system.”
According to the budget documents, an allocation of Tk 2,91,573 crore has been proposed for non-development and other expenditure and Tk 1,73,000 crore for development expenditure. An allocation of Tk 51,340 crore has been earmarked for the government’s debt servicing.
On the overall expenditure structure, Muhith proposed an allocation of 29.31 per cent of the total outlay for social infrastructure sector (education, heath and others), 30.99 per cent for physical infrastructure, 11.43 per cent for communication sector and 5.36 per cent for power and energy sector. Besides, 25.30 per cent of the total allocation has been proposed for general services and 4.78 per cent for PPP.
The proposed budget forecast that inflation to remain about 5.6 per cent in the next fiscal year.
Earlier in the morning the cabinet in a meeting chaired by Prime Minister Sheikh Hasina, approved the proposed budget.
Muhith will speak at a post-budget press conference at Osmani Memorial Auditorium today (Friday) at 2:30 pm.
Finance Minister AMA Muhith on Thursday placed a Tk 4,64,573 crore proposed national budget proposals for fiscal (2018-19) in Jatiya Sangsad targeting an economic growth of 7.8 percent.
He started placing the national budget themed, “Bangladesh on Pathway to Prosperity,” at 1.00 pm in the house in presence of Prime Minister Sheikh Hasina and Opposition Leader Begum Rawshan Ershad.
Muhith, who made history in placing his 12th budget in Jatiya Sangsad, in his budget speech said, ” I am presenting the budget at such a time which is simultaneously the best phase of Bangladesh’s economic success and the last budget of the ruling Awami League government’s consecutive second term.”
“The average economic growth rate hit over 7.0 per cent in the last couple of year and the economy is expected to grow at 7.65 per cent in the outgoing fiscal year 2017-18 based on pragmatic economic policies undertaken by Prime Minister Sheikh Hasina led Government,” said Muhith.
He added, “Our government’s enviable capacity for rapid implementation of socio-economic development plans has already been proved. It is not merely our claim; it is an internationally recognized fact. The country, which was disregarded as ‘bottomless basket’, is now globally considered as a development miracle. Bangladesh’s socio-economic achievement is a global role model.”
However, the proposed budget focuses on promoting economic growth, maintaining fiscal discipline, boosting exports
gearing up investment for job creation and striding the people-friendly policies for ensuring socio-economic prosperity.”
He said the budget has laid prime focus on human resource development and infrastructure while enhance allocations for social safety net proposed for providing maximum relief to vulnerable segments of the society.
Muhith said the total outlay of the proposed budget for the next fiscal year is Tk 4,64,573 crore (18.3 percent of GDP), up by 16 per cent over that of the original budget of the outgoing fiscal year 2017-18.
Of the total expenditure outlay, Tk 3,39,280 crore (13.4 per cent of GDP) is estimated to come from revenue receipts.
According to the proposal, the overall budget deficit will be Tk 1,25,293 crore, which is 4.9 per cent of GDP. Of this an amount, of Tk 54,067 crore (2.1 per cent of GDP) will be financed from external sources while an amount of Tk 71,226 crore (2.8 per cent of GDP) will be financed from domestic sources.
Of the domestic sources, Tk 42,029 crore will be borrowed from banking system while Tk 29,197 crore will come from National Savings Schemes and other non-bank sources.
The proposed budget has set a revenue collection target of Tk 2,96,201 crore (11.7 per cent of GDP) for the National Board of Revenue (NBR) and Tk 9,727 crore from non-NBR sources. Besides, the collection from non-tax sources is estimated at Tk 33,352 crore.
“It is essential to collect adequate revenue from internal sources to continue current economic progresses,” said Muhith adding, “We have emphasized on collection of revenue not by increasing tax rate but through expansion of tax base and encouraging self-compliance by reforming existing tax system.”
According to the budget documents, an allocation of Tk 2,91,573 crore has been proposed for non-development and other expenditure and Tk 1,73,000 crore for development expenditure. An allocation of Tk 51,340 crore has been earmarked for the government’s debt servicing.
On the overall expenditure structure, Muhith proposed an allocation of 29.31 per cent of the total outlay for social infrastructure sector (education, heath and others), 30.99 per cent for physical infrastructure, 11.43 per cent for communication sector and 5.36 per cent for power and energy sector. Besides, 25.30 per cent of the total allocation has been proposed for general services and 4.78 per cent for PPP.
The proposed budget forecast that inflation to remain about 5.6 per cent in the next fiscal year.
Earlier in the morning the cabinet in a meeting chaired by Prime Minister Sheikh Hasina, approved the proposed budget.
Muhith will speak at a post-budget press conference at Osmani Memorial Auditorium today (Friday) at 2:30 pm.
