Finance minister Abul Maal Abdul Muhith on Thursday placed in parliament the annual national budget of an outlay of Tk 4 trillion (Tk 400,266 crore) for the 2017-18 fiscal year, a figure up by 17.5 per cent from Tk 340,147 crore in the outgoing fiscal, Agencies report.
In the proposed budget, the finance minister has targeted a GDP growth rate of 7.4 per cent after, what he said, exceeding the target of 7.24 per cent in the outgoing fiscal.
“GDP growth rate will be 7.4 percent in FY 2017-18 and inflation will come down to 5.5 percent by the end of the fiscal year,” Muhith told the parliament.
The finance minister originally proposed for the 2016-17 fiscal year a budget of Tk 3.4 trillion (Tk 340,605 crore) which has been revised downwardly to Tk 3.17 trillion (Tk. 317,174 crore).
From the proposed budget of 2015-16 fiscal, this year’s proposed budget witnesses 17.51 per cent rise.
For the next financial year, Muhith proposed a revenue target of Tk 2.87 trillion (Tk 2,87,990 crore) and foreign grants of Tk 5,504 crore.
Of the revenue target, Tk 256,812 crore is expected to come from tax revenue, Tk 248,190 crore from NBR tax revenue, Tk 8,622 crore from Non-NBR tax revenue, and Tk 31,179 crore from Non-Tax revenue.
So, according to his estimate, the budget deficit stands at Tk 1.12 trillion (Tk 112,276 crore) which is 5.0 per cent of gross domestic product and which constitutes over 28 per cent of the total budget outlay.
The finance minister projected that of the budget deficit, Tk. 46,420 crore will come from external sources and Tk. 60,352 crore from domestic sources – Tk. 28,203 crore from the banking system and Tk. 30150 crore from savings certificates and other non-banking sources.
Muhith allocated a total of Tk 2,34,013 crore for non-development and other expenditure. And the annual development programme (ADP) has already been fixed at Tk. 153,331 crore.
The annual outlay for the next financial year is 18 per cent of the GDP while the amount of revised expenditure outlay of the current fiscal stands at 16.2 per cent of the GDP.
In the proposed budget of FY 2016-17, the revenue target was set at Tk 242,752 crore, which has been re-fixed at Tk 218,500 crore.