A pared-down draft revised budget for the current fiscal year and an outline of the next one are being placed before Chief Adviser Muhammad Yunus today to seek his advice and directions, officials say.
An upscale Tk 8.5-trillion budget for next fiscal year is likely to be framed by the interim government and left to the upcoming elected one for execution, sources say as the budgeting process gets going.
Finance Adviser Dr Salehuddin Ahmed, central bank governor Dr Ahsan H Mansur, finance secretary Dr Khairuzzaman Mozumder and officials from the budget wing of the ministry will attend the consultative programme on budgeting at his crucial time in the aftermath of regime change through uprising.
Officials say the finance division will need up to January-end to finalise the revised budget for the fiscal year 2025-26.
An initial estimation of the revised operating budget now stands at Tk 5.20 trillion in a climb-down from Tk 5.35 trillion earmarked in the actual budget.
However, officials say, the revision of spending for the current Annual Development Programme (ADP) has yet to be completed -- this is here where major reckonings and pruning are to take place in the wake of belt-tightening by the interim government.
A senior finance official told The Financial Express that there was little chance to drastically cut the current budget of Tk 7.90 trillion since the outlay itself is smaller than the previous one of Tk 7.97 trillion.
He estimates that once finalised, the revised budget for the current fiscal year may stand between Tk 7.8 trillion and Tk 7.85 trillion.
Finance Division officials also say usually they place revised budget and new budget outlines to the Prime Minister or Chief Adviser in mid-May, making it almost final, and seeking his/her last-minute advice.
However, since the interim-government would not be in office next May, and scheduled to leave by mid-February following a fresh general election, the finance officials decide to apprise the head of stand-in government of present state of budget docs much earlier than the usual practice.
Speaking about unforeseen financial obligations, a senior Finance Division official says the government has already paid Tk 200 billion to newly formed five-in-one Sammilito Islamic Bank and an additional some Tk 40 billion will be needed to pay enhanced house-rent allowances for the MPO-listed teachers.
"The two new allocations will put pressure on the size of the budget but won't exceed the actual size," he says.
Sources have said while presenting an outline of the upcoming budget, the officials may seek Chief Adviser's nod to go forward with a plan to prepare a Tk 8.5-trillion outlay for the new fiscal year.
The GDP (gross domestic product)-growth target for the next fiscal year is estimated at 6.0 per cent and they set a target to keep inflation at around 6.0 per cent.
"These estimations are at a very preliminary stage and will be finalised once the new government takes office," says another finance official, on the cusp transition through the set February-12th polls.
syful-islam@outlook.com
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