Bangladesh National Budget

Overview

• The Bangladesh National Budget is the annual financial plan of the Government of Bangladesh, outlining projected income and expenditures for the upcoming fiscal year.
• It is presented by the Minister of Finance on behalf of the Government of Bangladesh in the Jatiya Sangsad (National Parliament).

Key Components

• Revenue: Includes taxes, duties, and non-tax revenues collected by the government.
  • Tax revenue: Income tax, Value Added Tax (VAT), Customs duty, and other taxes.
  • Non-tax revenue: Interest, dividends, and fees collected by the government.
• Expenditure: Allocation of funds for various sectors and programs.
  • Development expenditure: Allocation for development projects and programs.
  • Non-development expenditure: Allocation for salaries, subsidies, and other expenses.

Budget Process

1. Preparation: The Ministry of Finance prepares the budget in consultation with other ministries and stakeholders.
2. Presentation: The Minister of Finance presents the budget in the Jatiya Sangsad.
3. Approval: The budget is approved by the Parliament after discussion and debate.
4. Implementation: The approved budget is implemented by the government through various ministries and agencies.

Key Budget Documents

• Budget Speech: The Minister of Finance's speech outlining the budget's key features and objectives.
• Budget Report: A detailed document explaining the budget's key allocations and priorities.
• Annual Development Programme (ADP): A document outlining the development projects and programs funded by the budget.

Budget Allocation

• Priority Sectors: Allocation of funds to key sectors such as:
  • Education
  • Healthcare
  • Infrastructure development
  • Agriculture
• Social Welfare: Allocation of funds for social welfare programs, including:
  • Poverty reduction
  • Women's empowerment
  • Disaster management

Challenges and Opportunities

• Revenue Mobilization: Increasing revenue collection to reduce dependence on foreign aid.
• Inclusive Growth: Ensuring budget allocations promote inclusive growth and reduce income inequality.
• Transparency and Accountability: Improving transparency and accountability in budget preparation and implementation.

Bangladesh National Budget

• The Bangladesh National Budget is the annual financial plan of the Government of Bangladesh, outlining projected income and expenditures for the upcoming fiscal year.
• It is presented by the Minister of Finance on behalf of the Government of Bangladesh in the Jatiya Sangsad (National Parliament).

Key Components of the Budget

• Revenue includes:
  • Tax revenue: Income tax, Value Added Tax (VAT), Customs duty, and other taxes
  • Non-tax revenue: Interest, dividends, and fees collected by the government
• Expenditure is divided into:
  • Development expenditure: Allocation for development projects and programs
  • Non-development expenditure: Allocation for salaries, subsidies, and other expenses

Budget Process

• Preparation: The Ministry of Finance prepares the budget in consultation with other ministries and stakeholders
• Presentation: The Minister of Finance presents the budget in the Jatiya Sangsad
• Approval: The budget is approved by the Parliament after discussion and debate
• Implementation: The approved budget is implemented by the government through various ministries and agencies

Key Budget Documents

• Budget Speech: The Minister of Finance's speech outlining the budget's key features and objectives
• Budget Report: A detailed document explaining the budget's key allocations and priorities
• Annual Development Programme (ADP): A document outlining the development projects and programs funded by the budget

Budget Allocation

• Priority sectors include:
  • Education
  • Healthcare
  • Infrastructure development
  • Agriculture
• Social welfare programs include:
  • Poverty reduction
  • Women's empowerment
  • Disaster management

Challenges and Opportunities

• Revenue Mobilization: Increasing revenue collection to reduce dependence on foreign aid
• Inclusive Growth: Ensuring budget allocations promote inclusive growth and reduce income inequality
• Transparency and Accountability: Improving transparency and accountability in budget preparation and implementation

Budget Allocation

• The national budget of Bangladesh allocates around 15% to education, 5% to healthcare, 20% to infrastructure development, 10% to agriculture, and 5% to social welfare.
• The remaining budget is allocated to other sectors, including defense, public administration, and miscellaneous expenses.

Taxation Policies

• The government generates revenue through income tax, value-added tax (VAT), customs duty, and excise duty.
• Tax policies aim to promote economic growth, reduce inequality, and increase revenue collection.
• The government has introduced measures to simplify tax procedures and reduce tax evasion.

Economic Growth Projections

• The Bangladesh economy has experienced rapid growth, with a GDP growth rate of 8.2% in 2020-21 and 7.5% in 2019-20.
• The government aims to achieve an average GDP growth rate of 8% per annum in the medium term.
• Key drivers of growth include remittances from overseas workers, export-oriented manufacturing industries, and infrastructure development.

Social Sector Expenditure

• The government allocates a significant portion of the budget to social sector expenditure, focusing on education, healthcare, and social welfare.
• Education expenditure focuses on improving access to quality education, especially for disadvantaged groups.
• Healthcare expenditure focuses on improving healthcare infrastructure and increasing access to healthcare services.
• Social welfare expenditure focuses on providing support to vulnerable groups, including the poor, elderly, and people with disabilities.

Infrastructure Development

• The government has prioritized infrastructure development to support economic growth and improve living standards.
• Key areas of focus include road and highway development, railway infrastructure development, port and maritime infrastructure development, and energy infrastructure development.
• Infrastructure development aims to improve connectivity, reduce transportation costs, and increase economic competitiveness.