Finance minister unveils Tk 2.95 trillion budget

Finance minister Abul Maal Abdul Muhith Thursday proposed Tk 2.95 trillion (Tk 2,95,100 crore) national budget with a deficit of Tk 86,657 crore in parliament.
He sets the target of attaining economic growth at 7 per cent at the end of the 2015-16 fiscal.
Our main objective in this fiscal year’s budget will be to break free of the 6 per cent growth trap, and climb up to higher growth trajectory, the finance minister hoped while unveiling the budget in parliament.
The budget of the outgoing fiscal 2014-15 was proposed at Tk 2.5 trillion (Tk 2,50,506 crore) and targeted a growth of 7.3 per cent which stands at 6.5 per cent in provisional estimate.
As for the deficit in the proposed budget, the finance minister, in his budget speech, said, I will not term the ‘deficit’ a big one given the size of the country’s economy.
About the stagnation in the GDP growth rate, he said, I admit unreservedly that GDP growth during the 6th Five Year Plan period was less than expected because of the sluggish global economy, political impasse and violence and investment-deficit in private sector.
Earlier, the budget was approved by the cabinet at a special meeting in Sangsad Bhaban with the prime minister, Sheikh Hasina, in the chair.
Of the total outlay of Tk 2,95,100 crore, the revenue receipts for the upcoming fiscal have been estimated at Tk. 2,08,443 crore which is 12.1 per cent of the GDP.
The proposed budget will be effective from 1 June after parliament would pass it on 30 June.
The business advisory committee of the 10th parliament has decided to hold 45 hours general discussions on the proposed budget beginning from 9 June.
The National Board of Revenue (NBR) is expected to contribute Tk. 1,76,370 crore (10.3 per cent of GDP) to the exchequer.
I believe this revenue target is achievable given the comprehensive reforms implemented in NBR tax collection potentials and stability in economic environment, said the finance minister.
Tax revenue from non-NBR sources has been estimated at Tk. 5,874 crore (0.3 per cent of GDP).
Besides, Tk. 26,199 crore (1.5 percent of GDP) is expected to be collected from non-tax sources.
The allocation for non-development expenditure including other expenses has been estimated at Tk 1,98,100 crore (11.5 per cent of GDP). In addition, Tk 97,000 crore has been estimated for annual development programme (ADP).
Together with the allocation of Tk 3,996 crore for autonomous bodies, total development expenditure stands at Tk 1,00,996 crore (11.6 per cent of GDP).
Of the overall budget deficit of Tk 86,657 crore amounting to 5.0 percent of GDP, Tk 30,134 crore is expected to be financed from external sources and Tk 56,523 crore from domestic sources. For domestic financing, Tk 38,523 crore will come from the banking system and Tk 18,000 crore from savings certificates and other non-banking sources.
The proposed budget will be effective from 1 June after parliament would pass it on 30 June.
The business advisory committee of the 10th parliament has decided to hold 45 hours general discussions on the proposed budget beginning from 9 June.