News
Budget today amid modest expectations
Expenditure of Tk 7.97 trillion, GDP growth target of 6.75%
FE REPORT | Published: June 6, 2024 00:00:04
Bangladesh’s new budget is being presented in parliament today amid modest expectations, as the economy faces stubbornly higher inflation, slower business activity, depleting foreign exchange reserves and revenue generation challenges.
Finance Minister Abul Hassan Mahmood Ali is expected to present the first national budget of his own in the House for the next fiscal year (FY 2024-25).
The current finance minister presents the budget through a PowerPoint presentation at the Jatiya Sangsad after the budget session resumes at 3 pm.
The likely size of the budget is Tk 7.97 billion, with a GDP growth target of 6.75 percent and an average annual inflation target of 6.5 percent. The monthly inflation rate is now reaching almost double digits.
The government foresees finance worth Tk 5.45 billion, including foreign donations, to finance the deficit budget.
The budget deficit was estimated at Tk 2.51 billion.
The government has planned to borrow Tk 1.61 billion from internal sources, while Tk 907 billion from external sources.
Of the domestic borrowings, Tk 1.375 billion could come from the banking system, according to finance division officials who are familiar with budget arithmetic.
According to a press release from the finance division, this is the 21st budget under the leadership of Prime Minister Sheikh Hasina. This is the first budget of the fourth term of the Awami League-led government.
The theme of the budget for the next fiscal year is “Commitment to building a happy, prosperous, developed and smart Bangladesh”, in line with the government’s commitments.
The press release says, “To make the budget more participatory, all budget documents would be uploaded on the Finance Division www.mof.gov.bd and NBR www.nbr.gov.bd websites while anyone can read and download these documents while browsing these sites.”
Furthermore, anyone from home and abroad can send their opinions and recommendations on the budget via email at budgetfeedback@finance.gov.bd.
The Finance Minister will hold a post-budget press conference tomorrow (Friday) at 3 pm at the Osmani Memorial Auditorium in Dhaka.
jasimharoon@yahoo.com