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Muhith to place Tk 1.9 trillion budget

Posted by bangladesh

The Finance Minister A M A Muhith is expected to place Tk 1.9 trillion budget in the parliament on Thursday prioritising power, roads and physical infrastructure for the next financial year.

Insiders say that a meeting with the Prime Minister on May 11 finalised the budget framework for the next fiscal with a deficit of five percent of the GDP. Finance Minister, Finance Ministry and National Board of Revenue officials involved with the budget process were present at the meeting.

Those familiar with the details say that the 2012-13 budget will look towards 'infusing dynamism into rural development, human resource development and a stronger welfare system' on the back of a Tk 550 billion annual development plan.

Non-development expenditure will be over Tk 350 billion.

Local government, power, primary education, health and family welfare will receive most of the development funds. These are also among the top five ministries in terms of total budgetary outlay, according to sources.

However, defence ministry will get highest allocation if development and non-development outlays together taken into consideration. Defence is expected to receive Tk 120.88 billion for the next fiscal.

According to sources involved with the budget process, subsidies on petroleum, power and agriculture will rack up the total figure to Tk 345.33 billion almost 20 percent of the total outlay. Development expenditures on the other hand will be almost a third of the outlay.

Just about three-fourths of the budgetary outlay will be financed through the government's revenues. Tax collection worth Tk 1.12 trillion will account for 80 percent of the total revenues next year.

Bank borrowing amounting to Tk 201 billion will cover almost 40 percent of the half trillion taka deficit. The remainder will be made up through foreign aid and other sources.

The finance minister will be targeting an inflation of 7.5 percent although it apparently spun out of control this year.

When considering individual ministries, energy and mineral resources, and industries will see their allocation almost double. Primary and mass education funds will increase by about 40 percent, roads by 33 percent, and rail and waterways will increase by about 25 percent each.

GDP

The Finance Minister in the coming budget is targeting a 7.2 percent GDP growth for the next fiscal. Bangladesh Bureau of Statistics (BBS) based on economic indicators of nine months (July-March) predicting GDP growth for the current year at 6.32 percent.

Digital budget

A media statement of the government said on Tuesday that the finance minister will place the budget using digital tools. All the budget documents will be released on the website after it is placed in the parliament.

The budget related information will be available on www.bangladesh.gov.bd, www.nbr-bd.org, www.plancomm.gov.bd, www.imed.gov.bd, www.bdpressinform.org, www.pmo.gov.bd,

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