Budget review depends largely on availability of aid : Mirza Aziz
Monday, 3 December 2007
Finance adviser AB Mirza Azizul Islam Sunday said the final review of the $65 billion (over Tk 87,000 crore) national budget proposed for fiscal 2007-08 depends largely on the materialisation of aid pledges, reports bdnews24.com.
"Budget review is a continuous process. A final review is not planned yet as we are not sure about available resources," Azizul told reporters at the planning ministry.
"We don't know how much of the aid pledged for this year will be coming in," he said.
The economy, which has been facing pressure from twin spells of flooding and a price hike, is now approaching a deep crisis due to the devastations left by Cyclone Sidr.
The budget deficit, which was Tk 298.36 billion in an initial projection, is likely to widen by the end of fiscal 2007-08 as the government will have to relocate funds to save cyclone-distressed people and undertake projects to bring them back to normal life.
Economists have already asked the government to review the budget.
Regulatory Reforms Commission chairman Akbar Ali Khan Sunday said the government should review the budget immediately.
"Budget plan and estimate will be changed because of a series of natural disasters," the former finance adviser said.
As proposed, the budget is supported by a $1,771 million (Tk 12,317 crore) project aid and Tk 573.01 billion in revenue earnings.
"Revenue earnings so far are good," Azizul said, "But materialisation of aid pledges is important."
Of the $1,771 million aid projected in the budget, only $284 million was disbursed during the first quarter till September, according to the Economic Relations Division.
In October, the World Bank disbursed $75 million in funds for post flood rehabilitation. A further $600 million is expected to come in grants, ERD data said.
"Budget review is a continuous process. A final review is not planned yet as we are not sure about available resources," Azizul told reporters at the planning ministry.
"We don't know how much of the aid pledged for this year will be coming in," he said.
The economy, which has been facing pressure from twin spells of flooding and a price hike, is now approaching a deep crisis due to the devastations left by Cyclone Sidr.
The budget deficit, which was Tk 298.36 billion in an initial projection, is likely to widen by the end of fiscal 2007-08 as the government will have to relocate funds to save cyclone-distressed people and undertake projects to bring them back to normal life.
Economists have already asked the government to review the budget.
Regulatory Reforms Commission chairman Akbar Ali Khan Sunday said the government should review the budget immediately.
"Budget plan and estimate will be changed because of a series of natural disasters," the former finance adviser said.
As proposed, the budget is supported by a $1,771 million (Tk 12,317 crore) project aid and Tk 573.01 billion in revenue earnings.
"Revenue earnings so far are good," Azizul said, "But materialisation of aid pledges is important."
Of the $1,771 million aid projected in the budget, only $284 million was disbursed during the first quarter till September, according to the Economic Relations Division.
In October, the World Bank disbursed $75 million in funds for post flood rehabilitation. A further $600 million is expected to come in grants, ERD data said.