Tk 1321bn Budget Eyes 6.7pc Growth
Friday, 11 June 2010

Bangladesh will spend Tk 1321.70 billion or US$ 19 billion next fiscal, hoping to grow nearly 7 percent banking on a post-recession positive world economic outlook.

Finance minister Abul Maal Abdul Muhith proposed the budget for the 2010-11 fiscal year in the parliament on Thursday, accounting for 16.9 percent of the GDP.

With a target of 6.7 percent GDP growth, the budget aims to secure almost 70 percent of the outlay from domestic revenues.

The proposed budget for the 2010-11 FY shows an increase of 20.15 percent from the current year's revised budget.

The minister started his budget speech around 4.10pm.

This is the second budget under the Awami League-led coalition government and it was presented through Powerpoint for the first time in the country. This was the 39th national budget and the 11th of the Awami League government.

The budget speech was broadcast live by state-run Bangladesh Television and Bangladesh Betar.

Prime minister Sheikh Hasina was present at the session, skipped by the BNP-led opposition.

The budget proposal targets around Tk 928.5 billion--11.9 percent of the GDP--in revenue earnings. Of the amount, the National Board of Revenue (NBR) is to earn Tk 725.9 billion, tax sources outside NBR are projected to contribute Tk 385.2 billion, and Tk 168.05 billion is targeted from non-tax earnings.

Budget deficit stands at Tk 393.23 billion, or 5 percent of the GDP. The deficit will be tamed with Tk 156.43 billion from foreign sources, and Tk 236.8 billion from domestic sources.

Among domestic sources of deficit financing, the banking sector is to provide Tk 156.8 billion, while non-bank sectors Tk 80 billion.

The initial budget proposal for the current fiscal stood at Tk 138.19 billion which was later revised to Tk 110 billion (16 percent of GDP), along with a revenue target of Tk 794.81 billion, 11.5 percent of GDP.


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