Académique Documents
Professionnel Documents
Culture Documents
Submitted to
Sk. Alamgir Hossain
Assistant Professor
Department of Finance
Jagannath University, Dhaka
Submitted by
Abir Ahmed
ID: B-1202030113
7th Batch, Department of Finance
Jagannath University, Dhaka
Contents
No
1
Budget
Government Budget
10
11
12
Page
Budget
A budget is a quantitative expression of a plan for a defined period of time. It may include
planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities
and cash flows. It expresses strategic plans of business units, organizations, activities or events in
measurable terms.
A budget surplus is a situation in which income exceeds expenditures. The term "budget
surplus" is most commonly used to refer to the financial situations of governments; individuals
speak of "savings" rather than a "budget surplus." A surplus is considered a sign that
government is being run efficiently.
Budget Deficit is a status of financial health in which expenditures exceed revenue. The term
"budget deficit" is most commonly used to refer to government spending rather than business or
individual spending. When referring to accrued federal government deficits, the term "national
debt is used.
Government Budget
A government
budget is
government
document
presenting
the
government's
proposed revenues and spending for a financial year that is often passed by the legislature,
approved by the chief executive or president and presented by the Finance Minister to the nation.
The budget is also known as the Annual Financial Statement of the country. This document
estimates the anticipated government revenues and government expenditures for the ensuing
(current) financial year.
BUDGET AT A GLANCE
Budget
Revised
Budget
2016-17
2015-16
2015-16
Expenditure
2,42,752
1,77,400
2,08,443
2,10,402
1,55,400
1,82,244
2,03,152
1,50,000
1,76,370
7,250
5,400
5,874
32,350
22,000
26,199
5,516
5,027
5,800
2,48,268
1,82,427
2,14,243
2,15,744
1,63,751
1,84,559
1,88,966
1,50,379
1,64,571
39,951
31,669
35,109
38,240
30,044
33,396
1,711
1,625
1,713
26,778
13,371
19,988
- 594
201
227
8,428
4,705
7,755
1,17,027
95,908
1,02,559
354
585
633
4,147
2,687
3,339
1,10,700
91,000
97,000
1,826
1,636
1,587
3,40,605
92,337
- 4.7
97,853
2,64,565
- 82,138
- 4.7
- 87,165
- 5.0
- 5.0
Budget
Revised
2,95,100
- 80,857
- 4.7
- 86,657
- 5.0
BUDGET AT A GLANCE
Description (Taka in Crore)
2016-17
2015-16
Budget
2015-16
Financing
Foreign Borrowing-Net
Foreign Borrowing (Statement V)
Amortization (Statement IX)
Domestic Borrowing (Statement VIB)
Borrowing from Banking System (Net)
30,789
19,963
24,335
38,947
27,047
32,239
8,158 -
7,084 -
7,905
61,548
62,175
56,523
38,938
31,675
38,523
28,910
21,118
10,028
10,557
14,341
22,610
30,500
18,000
19,610
28,000
15,000
3,000
2,500
3,000
92,337
82,138
80,857
19,61,017
17,29,567
17,16,700
24,182
Memorandum Item :
GDP
Allocation of resources
Under such a scenario required growth rate for revenue in FY17 may shoot up to around 44.5%
(from 36.8%), while for NBR the actual target may stand around 41.1% (from 35.4%). Such a
high growth rates were never achieved before.
15% custom duty under new slab and package VAT system
will influence small construction firms operation but reduced
price of fly ash, filter and vanga will reduce the construction
costs to some extent.
To promote real estate peripheral to city corporation, FY 201617 budgets proposed lower source tax for construction
materials.
20% revenue duty will be imposed on alloy steel, primary
forms and semi-finished goods production. Besides revenue
duty of 3% will also be imposed on steel bar and angle which
will increase construction costs.
Engineering Sector
Fuel and energy sector has allocated 13.5% of total ADP where
it was 18.2% in FY 2015-16. Besides finance minister
indicated that industrial gas supply wont become available
before 2018.
Custom duty on LPG cylinder of plastic and glass fiber import
is reduced to 10% which was 25% in FY 2015-16 thus this will
adversely affect domestic LPG cylinder suppliers operation.
Custom duty has increased to 15% for corn flour, wheat starch
and potato starch imports from existing 10% where 25%
import duty will be charged for corn starch import.
Import duty for urea fertilizer will have been reduced to 15%
from its current level i.e. 25%. Besides the price of poultry
feed will also be reduced in coming FY.
Information and
Communications
Technology
Pharmaceuticals and
Chemical Sector
Textile
Source tax for export-oriented sector will rise to 1.5% from its
current level of 0.60%.
Corporate tax has been reduced to 20% for RMG
manufacturers which is 35% for non-listed RMG Company
and 25% for listed.
BDT 40 billion (excluding 5 billion for jute products) will be
Concluding Remarks
Bring more transparency in budget formulation, implementation and assessment procedures:
Establish a Public Expenditure Review Commission
Formulate appropriate follow up mechanisms for monitoring government tax incentives
Disclose financial accounts of state-owned enterprises including BPC and contingent
liabilities in detail
Establish transparency in governments asset acquisition
Formulate an appropriate foreign aid policy in view of the changed global aid
architecture and Bangladesh becoming the (lower) middle income country
More sunshine in defense economy
Introduce separate but integrated budget for local government
Integrate NGO financing in the public expenditure structure