The upcoming national budget for the fiscal year 2019-20 will be placed by the Finance Minister before the national parliament on June 13.
As usual, this time also there are discussions on the likely issues in the budget and also whether these are going to make life of the citizens difficult or not. What we observe every year immediately after the announcement of the budget is its reaction in the market. Some products become instantly pricy, and if these are essential consumer items, common people are to bear the brunt. Usually, increase in import tariffs, value added tax (VAT) or restriction in import lead to increase in prices of goods and services.
Over the years, it has been noticed that the government tries, as far as possible, not to levy taxes on essential commodities in order that prices of such commodities remain stable. On the other hand, the government imposes additional taxes on luxury items. This year, we have observed much debate on VAT. The Chambers and business associations have been raising their voices in various forums to ensure that VAT does not become burdensome for businesses. We hope that the government will accommodate their views and concerns in the budget.
There are a number of terms that people need to learn to clearly understand the national budget. National budget is a projection of yearly income and expenditure in the various sectors of the government for a fiscal year. In the budget, usually annual expenditure of the fiscal year is identified first and thereafter different income sources to cover these expenditures are sought. The fiscal year starts from July 01 of a year and ends of June 30 the next year in our country.
If government's projected budget income is more than expenditure, it is called a surplus budget. In case of an inverse situation, it's called a deficit budget. If income and expenditure are equal, then it is called a balanced budget. Surplus and balanced budgets are very difficult to achieve for most countries.
The Finance Minister AHM Mustafa Kamal has assured that there will be no new tax burdens. Most citizens of the country are now hoping that the upcoming budget will not drastically increase the prices of essential food items and services.
Md. Zillur Rahaman
Satish Sarker Road,
Gandaria, Dhaka.
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