The government has decided to increase the revenue income target to keep the budget deficit within 5% of the GDP in the next fiscal year.
The target would then be increased by Tk45bn to Tk50bn to Tk2.03tn for 2015-16.
The additional amount – estimated just a few days ahead of placing the new national budget – is to meet the increased expenditure, officials said.
The next fiscal revenue earnings were earlier estimated at Tk1.76 trillion. But now it would be increased by Tk35 billion while non-tax revenue earnings will be Tk286.62 billion.
The decision was made at a meeting between Finance Minister AMA Muhith and National Board of Revenue Chairman Najibur Rahman at the Finance Ministry yesterday.
The GDP growth target is set at 7.1% for the upcoming fiscal year although political uncertainly still prevails in the country. The country’s economy is estimated to grow at 6.51% in the outgoing fiscal year.
It would be a huge task for the NBR to realise Tk2.03tn in the next fiscal year, officials said. But it would also be more difficult to earn Tk45bn to Tk50bn from the revenue income.
The budget deficit for the next fiscal year is likely to increase by 43.45% from that of the current fiscal year, according to the latest estimates decided at the meeting.
The deficit this fiscal year is Tk613.46 billion and the next year it would be Tk880 billion. The deficit would be financed from local sources of Tk565 billion and Tk365 billion of bank borrowing while the rest would come from savings instruments.
The total GDP at the current market price is estimated to be of Tk17.60 trillion in the next fiscal year.
Next fiscal year the budget outlay will be more than Tk3 trillion which would be 17.04% of the country’s GDP.
The foreign assistance committed so far stood at Tk301 billion while Tk243.33 billion comes as loan and rest of the fund as foreign grants.
