The government's budget spending during the past 11 months of fiscal year 2023 remained lower than expected on the back of poor development expenditure, according to a finance division calculation.
Official statistics show the spending stood at 64 per cent of the total revised estimate, mostly on the back of non-development expenditure.
This execution rate is, however, 5.0 percentage points up than that of the corresponding period a year earlier.
The revised estimate was Tk 6.60 trillion, or 2.6 per cent, lower than that of the original budget placed for FY23.
The spending during the 11-month period up to May 2023 was Tk 4.25 trillion, according to the calculation.
During the period, non-development spending was 74.5 per cent of the revised estimate of Tk 4.14 trillion for FY23, which ended on June 30.
The allocation for non-development expenditure was nearly 63 per cent of the total revised budget of Tk 6.60 trillion for FY 2023.
People familiar with the matter at the finance division told the FE that this spending was slightly higher than last year's as interest payments, subsidies and food account expenditure were higher.
"Interest payments to both domestic and external sources were around 95 per cent during the July-May period," said one official at the division.
The total allocation for interest liabilities was estimated at the revised budget amounting to Tk 852.4 billion.
Subsidy payments also witnessed more than 75 per cent high during the period of the total revised estimate Tk 771.9 billion, disclosed the statistics.
The official said food account rose by more than six times during the period as the volatility in the international market, coupled with forex-market volatility at home, raised the expenditure.
But the execution rates of development expenditure, including the annual development programme or ADP, were poor during the period in question.
According to statistics, the development expenditure was less than 50 per cent of the total allocation for FY23 during the same period.
The total allocation for development expenditure was Tk 2.42 trillion for the past fiscal year. The spending was just Tk 1.11 trillion or nearly 46 per cent.
On tax receipt, the tax revenue mobilisation was more than 73 per cent during the period of the revised target Tk 3.88 trillion.
The collection of non-tax revenue, or fees and dividends, from government-owned enterprises, including the central bank, was 74 per cent of the Tk 450-billion annual target during the period under review.
The foreign grant, which need not be repaid, was much lower as it received only 14 per cent of the Tk 32.6 billion estimated in the budget.
For FY23, the actual overall balance up to May 2023 (excluding grants) witnessed a negative value, which was 2.41 per cent of gross domestic product (GDP).
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