14pc growth in expenditure likely in budget
FE Report | Wednesday, 4 June 2008
The government is likely to set the Gross Domestic Product (GDP) estimate at Tk 6131 billion for the fiscal 2008-09, up by Tk 828 billion from fiscal 2007-08, Finance ministry sources said.
The size of GDP of the outgoing fiscal is Tk 5303 billion, which was Tk 4675 billion in 2006-07.
The government is expected to project a budgetary deficit of Tk 300 billion or 5.0 per cent of GDP in the upcoming fiscal.
In the budget for FY09, the finance adviser is expected to project over 14 per cent growth of expenditure over that of the revised budget of Tk 860.85 billion for the outgoing 2007-8 fiscal. The projection will be at least 17 per cent of the country's GDP.
The government expects to get around Tk 124 billion as foreign assistance in the 2008-09 fiscal.
"Government's borrowing from internal sources will decline if it receives additional funds as project assistance," a finance ministry official said.
In 2007-08 the original size of the budget was Tk 871.37 billion, including Tk 75.23 billion liabilities of Bangladesh Petroleum Corporation (BPC), which the government absorbed by issuing 'non-cash' bond.
Of the total budget, the size of Annual Development Programme (ADP) is likely to be of Tk 256 billion.
The upcoming budget will streamline subsidies, including readjustment of government controlled prices, in the wake of soaring prices of fuel and fertiliser in the international market, officials said.
According to the budget estimates, total revenue collection target for 2008-09 is likely to be Tk 702.04 billion, or 11.48 per cent of the GDP.
Of the projected revenue, tax revenue collection target might be set at around Tk 547 billion and non-tax revenue at Tk 132.50 billion and non-NBR revenue at Tk 22.50 billion.
The size of GDP of the outgoing fiscal is Tk 5303 billion, which was Tk 4675 billion in 2006-07.
The government is expected to project a budgetary deficit of Tk 300 billion or 5.0 per cent of GDP in the upcoming fiscal.
In the budget for FY09, the finance adviser is expected to project over 14 per cent growth of expenditure over that of the revised budget of Tk 860.85 billion for the outgoing 2007-8 fiscal. The projection will be at least 17 per cent of the country's GDP.
The government expects to get around Tk 124 billion as foreign assistance in the 2008-09 fiscal.
"Government's borrowing from internal sources will decline if it receives additional funds as project assistance," a finance ministry official said.
In 2007-08 the original size of the budget was Tk 871.37 billion, including Tk 75.23 billion liabilities of Bangladesh Petroleum Corporation (BPC), which the government absorbed by issuing 'non-cash' bond.
Of the total budget, the size of Annual Development Programme (ADP) is likely to be of Tk 256 billion.
The upcoming budget will streamline subsidies, including readjustment of government controlled prices, in the wake of soaring prices of fuel and fertiliser in the international market, officials said.
According to the budget estimates, total revenue collection target for 2008-09 is likely to be Tk 702.04 billion, or 11.48 per cent of the GDP.
Of the projected revenue, tax revenue collection target might be set at around Tk 547 billion and non-tax revenue at Tk 132.50 billion and non-NBR revenue at Tk 22.50 billion.