UNB, Dhaka :
The Unnayan Onneshan (UO), an independent multidisciplinary think tank, in its pre-budget issue of Bangladesh Economic Update, calls for far-sighted actions toward formulating 2016-17 budget against the backdrop of poor implementation status of 2015-16 budget.
The current size of the economy demands larger national budgets, but the country’s incapacity to efficiently implement the current budgets does not suggest a prospect of substantial increase in the size of national budgets in the coming years, comments the UO.
In addition, taking account of the poor implementation status of
allocations for physical and social infrastructure, and high youth unemployment rate, the think tank puts particular emphasis on the move toward expanding productive capacity in the economy through ensuring quality investment in physical and social infrastructure and thus creating jobs for the youth.
The research organization shows that only 30.7 percent of the total non-development budget has been implemented during the first six months of FY 2015-16 while only 41 percent of the total annual development program (ADP) has been implemented during the first nine months (July’15 – March’16) of the current fiscal year. However, the National Economic Council has recently been revised the development budget at Tk. 91000 crore from Tk. 97000 crore.
The update represents a critical analysis of the major economic challenges in regard to revenue collection, government expenditure, budget balance, foreign grants, remittance, industrial term loans, and inflation,which the economy has underwent during the FY 2015-16, and must take into account before declaring the budget for FY 2016-17.
Taking account of unsatisfactory implementation of government expenditure, the research organization evinces that the actual amounts of non-development expenditure and development expenditure have stood at Tk. 56629.8 crore and Tk. 17703.8 crore during the first half of FY 2015-16 against the whole fiscal year’s target of Tk. 184552.1 crore and Tk. 102559 crore respectively, representing only 30.7 percent and 17.3 percent of respective targets.
Calling for prudent and farsighted fiscal management, the research organization states that the proposed actions for FY 2016-17 should be able to bring about fiscal discipline in implementation of government expenditure on the one hand, and to increase income through reforming the tax system on the other.
The Unnayan Onneshan (UO), an independent multidisciplinary think tank, in its pre-budget issue of Bangladesh Economic Update, calls for far-sighted actions toward formulating 2016-17 budget against the backdrop of poor implementation status of 2015-16 budget.
The current size of the economy demands larger national budgets, but the country’s incapacity to efficiently implement the current budgets does not suggest a prospect of substantial increase in the size of national budgets in the coming years, comments the UO.
In addition, taking account of the poor implementation status of
allocations for physical and social infrastructure, and high youth unemployment rate, the think tank puts particular emphasis on the move toward expanding productive capacity in the economy through ensuring quality investment in physical and social infrastructure and thus creating jobs for the youth.
The research organization shows that only 30.7 percent of the total non-development budget has been implemented during the first six months of FY 2015-16 while only 41 percent of the total annual development program (ADP) has been implemented during the first nine months (July’15 – March’16) of the current fiscal year. However, the National Economic Council has recently been revised the development budget at Tk. 91000 crore from Tk. 97000 crore.
The update represents a critical analysis of the major economic challenges in regard to revenue collection, government expenditure, budget balance, foreign grants, remittance, industrial term loans, and inflation,which the economy has underwent during the FY 2015-16, and must take into account before declaring the budget for FY 2016-17.
Taking account of unsatisfactory implementation of government expenditure, the research organization evinces that the actual amounts of non-development expenditure and development expenditure have stood at Tk. 56629.8 crore and Tk. 17703.8 crore during the first half of FY 2015-16 against the whole fiscal year’s target of Tk. 184552.1 crore and Tk. 102559 crore respectively, representing only 30.7 percent and 17.3 percent of respective targets.
Calling for prudent and farsighted fiscal management, the research organization states that the proposed actions for FY 2016-17 should be able to bring about fiscal discipline in implementation of government expenditure on the one hand, and to increase income through reforming the tax system on the other.
