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Assignment Budget Analysis 2010 2011
Assignment Budget Analysis 2010 2011
The National Budget for the fiscal year 2010-2011 was presented
in the parliament on June 10, 2010. The budget was approved by
the parliament on June 30, 2010, although in absence of the chief
opposition BNP. The Speaker of the National Parliament Mr. Abdul
Hamid presided over the session while the budget for the running
fiscal year amounting Taka 1, 32,170 crore was passed. The
Annual Development Programme amounts Taka 38,500 crore and
the revenue expenditure amounts Taka 93,670 crore.
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Basic Information of the Annual Financial
Statement
Budget: 40th, declared on June 10, 2010
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Projected facts: GDP growth – 6.7%
Inflation – 6.5 %
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- Several measures to expedite reforms in the tax
administration.
Safeguard Duties:
For the indiscriminate huge importation of some products, the
local industries face loss. There is also the scope to tackle this
under the rules and regulations promulgated by the World Trade
Organization (WTO). But this has been avoided in Bangladesh
since long. Finally, a new set of regulations regarding this issue
has been declared on June 7, 2010 and amalgamated in the
budget. Besides this, a Safeguard Authority has been established
to look after these issues. The Safeguard Authority will be headed
by the Chairman of the Tariff Commission.
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12,516.76 crore (for 2010-2011) for ten ministries and
departments.
District Budget:
Agricultural Insurance:
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Bangladesh Climate Change Resilience Fund:
The energy and power sector has got the highest priority claimed
by the finance minister actually means the increase in the amount
of allocation. The amount is Taka 1,804 crore more than that of
the last fiscal year. But this increase does not necessarily mean
the enhancement of national resilience through strengthening
BAPEX and Petrobangla, nor does it mean establishing new power
plants, let aside the enrichment of study and research in this
sector. So, what for the increased amount is?
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In the last fiscal year, the total allocation for energy and power
sector was Taka 4,310 crore. At the end of the fiscal year, it was
found that an amount of Taka 524 crore remained unspent.
Where there are many vacant posts in BAPEX-Petrobangla,
necessary instruments are not regularly bought, training-research
etc. has been pending only with the excuse of short of fund, how
could it happen? Nevertheless, the whole country had to face
severe power crisis during the last several months and the
government had a wider scope to make proper use of this
unspent amount to face the same crisis in the running as well as
in the coming pick-demand season.
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Scope for Whitening black Money:
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Absence of Anti-corruption Strategy and Good
Governance:
The budget speech was much lengthy this time. Excluding the
appendix, the 92-page budget contains the expression of
satisfaction as well as an overall description of the economy by
the finance minister. But the description of the revenue activities
is limited in the last 13 pages and revenue related matters in
more 19 pages. How would the budget affect the life in the next
fiscal year is the prime interest of the mass people. People have
nothing to do with the total amount, revenue account,
expenditure account or development account in the budget. In
this sense, the budget is not clear enough to address the issues
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like tax increase or decrease, new areas to be taxed etc. which
are the main anxiety in the mass people.
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Although there have been enormous amount of plans and indexes
regarding economic development, the number of poor people has
not been decreased. Billions of Taka has been spent by the
government and NGOs in thousands of projects but the result is
not that good in the elimination of poverty. 75% of the whole
population still lives in mud and bamboo made dilapidated
houses. Lighting at night is still done with kerosene lamp in
almost half of the total number of families. 60% people do not
have any radio or television set for entertainment. Less than one-
third students complete the primary schooling.
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needs creative policies”. He also added that Brazil, China and
other fast growing economies adopted their own creative policies
in recent time and thus ensured higher and sustained growth.
In this regard, the GDP growth rate has been estimated to scale
up to 8% after five years in 2013-2014 fiscal year. There is also
estimation of scaling up the GDP growth up to 10% and 12% in
2017 and 2021 respectively.
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with the present ratio to GDP. In this 12%, state investment will
be 4% and the private investment will be 8% - this is the
estimation.
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a new budget prepared, but they did not do it or actually they did
not need it. 63% of those 41 countries make very trifling changes,
resulting only 3% up-down in the budget. What is observable is
that the whole world is pursuing towards the practice of a
‘shadow budget’, which is presented before the parliament much
ahead of the final budget.
The book published by the World Bank says how the budget will
be and how much transparent it will be depend on the analytical
capacity of the parliamentarians. Only a few of our
parliamentarians are well-known in showing this capacity.
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Conclusion
From an overall view, it seems that the GDP growth may range
from 5.5% to 6.1% in the new fiscal year. It will result from mainly
the increase in aggregate consumption expenditures. Because,
the upgraded pay-scale for the government employees will be
fully implemented in this fiscal year. Besides, the subsidies for
fuel, energy and fertilizer will also increase along with the
strengthening of the social safety net programmes. All these will
exert an upward effect on the GDP. So, the question remains for
the task of strengthening the manufacturing sector by enhancing
investment. And this is the biggest challenge for the finance
minister.
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