The national budget for fiscal 2014-15 is scheduled to be placed in parliament today with an ambitious economic growth target of 7.3% through a substantial rise in government spending.
Finance Minister AMA Muhith is all set to propose the country’s 43rd budget through a powerpoint presentation at 3pm with having an allocation of Tk250,506 crore as the budget documents have already leaked.
Before his placing the budget, a meeting of the cabinet is scheduled to be held at Sangsad Bhaban at 1pm to approve it.
As a finance minister of the Awami League government, it would be his sixth budget in a row. It is the 15th budget of the Awami League government and the eighth for Muhith. The budget for the FY15 will be passed on June 29.
The first budget of the present term would have an outline for the next five years of the development activities with a plan to make the country as a middle income one.
Priority would be given from this budget to implement few mega projects like Padma Bridge, Dhaka-Chittagong Four-lane project and nine power plants, including Rooppur nuclear power plant.
The projects, announced in the ruling Awami League’s previous term along with a host of others, are expected to directly contribute to the country’s economic growth and benefit the people.
The spending being considered as substantial would be met from increased estimate of revenues while depending on enhanced bank borrowing. The projection for foreign loans has increased, but not much.
Yet, the budget would target an inflation of 6%, much lower than what it was in the outgoing fiscal year.
As much as everyone wanted a path-breaking budget, political-economic factors such as placating different interest groups mean the finance minister’s hands are tied.
The government is, however, set to slash subsidy allocation by about 19% to Tk26,453 crore in 2014-15, with the bulk of the cuts falling on fuel subsidy – which means the people would have to pay more in terms of energy bills.
The budget would have an effort to stimulate private sector investment as it would announce some incentives.
The documents would include summary of the budget, annual financial statement, supplementary financial statement, mid-term macro-economic policy statement, March towards Digital Bangladesh: Update 2014, power and energy sector development: advancement of success, rail communication system: progress towards development, poverty and inequity in Bangladesh: journey towards overcoming it, development and flourish of the tourism industry, district-wise budget allocation 2014-15 (Sylhet, Khulna, Chittagong, Tangail, Barisal, Rajshahi and Rangpur), gender budget statement, economic survey, demands for grants and allocation (non-development and development), demands for grants and allocation (development) and mid-term budgetary framework.
Like previous years, all the budget documents will be made available online at www.mof.gov.bd, ww.bangladesh.gov.bd, www.nbr-bd.org, www.plancomm.gov.bd, www.imed.gov.bd, www.bdpressinform.org and www.pmo.gov.bd.