The proposed national budget for FY2016-17 appears to be quite a traditional one if we look at its main features.
Firstly, the size is only marginally bigger than that of the last fiscal. The size which was Tk.2836.79 billion last year is Tk.3406.05 billion this year, an increase of only 16 per cent.
Secondly, non-development expenditure is exceedingly high as it has always been. The ratio in the ongoing fiscal is 35:65, which means development expenditure was only Tk.35 against non-development expenditure of Tk.65 for a total allocation of Tk.100. The ratio will gone down further to 32.5:67.5 in the forthcoming fiscal. This by means is an indication of a healthy economy. If lion's share of the budget is spent on a top-heavy administration, desired development will remain as a distant dream.
Thirdly, higher taxes have been imposed on the common people which means major share of revenue income will come from indirect taxation. The ratio of direct and indirect taxation, which is 34:66 in the budget for 2015-16, will remain almost the same in the proposed budget which is, 35.4:64.6.
Fourthly, like all preceding budgets the proposed budget is heavily dependent on foreign aid. The overall deficit in the proposed budget is Tk.978.53 billion of which 37.1 per cent will come from foreign sources and 62.9 per cent from domestic sources (39.8 per cent from banking source and 23.1 per cent savings certificates and other non-banking sources).
Fifthly, although the Finance Minister showed education as number one priority, he kept quiet about fulfilling the political commitment of the ruling government on separate and higher pay-scale for teachers. In case of highest allocation for education, he discreetly included ministries of Primary and Mass Education, Secondary, Higher Secondary and Technical Education, Science and Technology, and Information and Communication Technology together and added the allocations of these ministries to show that education has been given the highest allocation in the proposed budget.
Sixthly, the situation is similar in communication and infrastructure sectors. In this case also, allocations to some sectors have been added together to present a high allocation figure. Railways and water transport sectors have not been given the priority they deserve.
Seventhly, the proposed allocation of Tk.187.27 billion for mega projects is a praiseworthy move, but the Finance Minister said nothing about the transport infrastructure required (coordinated railway-river-air transport system) to derive benefits from such mega projects.
Eighthly, the Minister said nothing about rampant corruption and weaknesses of administration (bureaucracy). On the other hand, the opportunity to whiten the black money has been retained or is going to be retained. This will work as an encouragement for the wrong-doers.
The proposed budget is business-friendly, rich-friendly and capital-friendly, but not poor-friendly and therefore can not actually be called ambitious. It is ambitious only from implementation point of view.
