Finance minister expects 8.2 pc growth
Special Correspondent: The 48th national budget of Tk 5.23 trillion (5, 23,190 crore) for the 2019-20 fiscal was placed in parliament yesterday which is an 18 percent increase from the revised budget of the outgoing fiscal year.
Finance minister AHM Mustafa Kamal started presenting the national budget with a deficit of Tk 1.45 trillion (Tk 1, 45,380 crore) in the House around 3:07pm.
The budget has largely focused on infrastructure, along with a major push to scale up social safety net and other nationally important projects.
In his maiden budget speech posted on the finance ministry’s website yesterday, Finance Minister AHM Mustafa Kamal made a series of pledges to spur economic growth. In the proposed budget, the GDP growth is projected at 8.2 percent for FY20. Kamal hopes to keep the inflation target below 5.5 percent in the new fiscal year.
Of the Tk 5.23 trillion, the proposed budget sets out a revenue target of over Tk 3.77 trillion. More than Tk 3.25 trillion is expected to come through the National Board of Revenue.
The budget deficit will be kept at 5 percent of the gross domestic product.
The government has already approved Tk 2.03 trillion Annual Development Programme, which is 17.18 percent higher than the revised ADP of the outgoing fiscal year.
As he was having problems in placing the budget due to illness, prime minister Sheikh Hasina stepped in, saying the minister was unable to read out the budget speech.
“If the Speaker allows me, I can read it out,” she said.
Finally, she started placing the rest of the budget on behalf of the finance minister after speaker Shirin Sharmin Chaudhury gave her the go-ahead.
After the budget speech by the prime minister, the finance minister placed the Finance Bill before the House.
This is the first budget of the Awami League government of its third successive term and also the first one for Mustafa Kamal as the finance minister.
Earlier, President Abdul Hamid authenticated the national budget and the revised budget for placing before the Jatiya Sangsad.
The new budget predicts collecting Tk 3.7 trillion (Tk 377,810 crore) as revenue in the new fiscal year.
Of the amount, the National Board of Revenue (NBR) has been tasked to collect Tk 3.25 trillion (Tk 3,25,600 crore) as revenue. The non-NBR revenue collection target is Tk 14.5 billion while the non-collection target is Tk 37.71 billion.
Besides, Tk 41.68 billion will come from foreign grants.
BUDGET REVENUE, DEFICIT
Total revenue collection has been estimated to be Tk. 3,77,810 crore in the FY2019-20.
Out of this amount, Tk 3,25,660 crore will be collected through the National Board of Revenue. Tax revenue from non-NBR sources have been estimated at Tk 14,500 crore.
Besides, non-tax revenue is estimated at Tk. 37,710 crore.
The overall budget deficit will be Tk 1, 45,380 crore, which is 5 percent of GDP which is the same as the ratio last year, according to the budget.
The budget deficit will be financed with Tk 68,016 crore from external sources and Tk 77,363 crore from domestic sources.
A 15-minute documentary highlighting various economic developments of the government was shown through a multimedia presentation before the beginning of the budget speech.