Finance Minister AMA Muhith is set to place the national budget for the next fiscal year (FY17) in parliament this afternoon with a outlay of Tk 340,605 crore.
Muhith will place his 8th consecutive budget as finance minister of the AL-led coalition that has been in power since 2009. Muhith is expected to start his presentation using Powerpoint at 3pm.
The new budget eyes a GDP growth target of 7.2 percent, up from the outgoing fiscal's target of 7 percent, said officials at the Ministry of Finance.
However, as per the provisional estimation of the BBS, the GDP growth is poised to reach 7.05 percent in the outgoing fiscal.
The inflation target next year is likely to ...view middle of the document...
Apart from the NBR revenue system, the non-NBR revenue collection target is likely to be Tk 7,250 crore while around Tk 32,350 crore is likely to be collected from various service fees and non-tax sources.
Besides, the government has set a target of getting Tk 5,516 crore as foreign grant.
To meet the budget deficit, the government is likely to take Tk 38,947 crore credit from the foreign sources of which Tk 8,158 crore would be spent for repaying the interest for foreign credit. As a result, the net government credit from foreign sources is likely to be around Tk 30,789 crore.
Besides, the government is set to take Tk 61,548 crore loan from the local sources of which Tk 38,938 crore would come from the banking sector, Tk 19,610 crore from the savings certificates and Tk 3,000 crore credit from the other sources.
Around Tk 117,027 crore would be spent for development activities including the Annual Development Programme (ADP) outlay of Tk 110,700 crore. Some Tk 4,147 crore would be spent as non-ADP project expenditure alongside Tk 1,826 crore under the Food for Work Programme and Tk 354 crore for the development programme to be financed from revenue budget.
Besides, Tk, 22,700 crore is likely to be kept as subsidy in the new budget which will be lower than the outgoing fiscal year.
If the proposed expenditure of Tk 9,645.80 crore for the autonomous bodies and corporations is added to the original ADP, then the overall development expenditure for the next fiscal year would stand at Tk 1,23,345.80 crore.
The outgoing fiscal year is defined by growing confidence and optimism in the country's ability to achieve higher economic growth.
The government's increasing investment in giant infrastructure projects has helped Bangladesh achieve 7.05 percent growth.
Yet, there are many concerns in the economy, with the slowdown in private investment being the paramount of all, brought on by inadequate gas, electricity and land.
Declining remittances could hurt the economy further.
The inflow of foreign direct investment is also a matter of worry. Even though the country offers the most liberal investment opportunities in South Asia, the FDI in Bangladesh is less than in India, Myanmar and Pakistan.
The government's capacity to implement the budget and public-private partnership (PPP) projects also raises questions as no significant progress was seen on this front.
Reforms or privatisation of state-owned enterprises, including troubled banks, is another big challenge for the government.
In this backdrop, Finance Minister AMA Muhith is set to place the budget for fiscal 2016-17 in parliament today.
He has already disclosed many of the budget figures including the total outlay, which would be about Tk 340,000 crore, up about 30 percent year-on-year. The figure is also 17.4 percent of the gross domestic product.
Inadequate gas, electricity and land are big impediments to private investment, said Wahiduddin Mahmud, a renowned...