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Dhaka Tribune

Parliament passes Tk603,681 crore budget for FY2021-22

The approved budget is Tk35,681 crore higher than the original budget size of the 2020-21 fiscal year

Update : 30 Jun 2021, 03:50 PM

The parliament on Wednesday passed the proposed national budget of Tk603,681 crore for the 2021-22 financial year, which aims to strengthen the growth of the pandemic-hit country's economy.

The budget, the biggest in the country's history, will prioritise Covid-19 related issues, health, agriculture, social safety net, employment, food and disaster management, and food security.

The approved budget is Tk35,681 crore higher than the original budget size of the 2020-21 fiscal year, which was Tk568,000 crore.

Finance Minister AHM Mustafa Kamal had presented the budget before the House on June 3, reports BSS.

On Tuesday, the parliament passed the Finance Bill, 2021 with some changes.

Following the proposal mooted in the House by the finance ministry for the parliamentary approval of appropriation of fund for meeting necessary development and non-development expenditures of the government, the ministers concerned placed justifications for the expenditures by their respective ministries through 59 demands for grant.

Earlier, the Parliament rejected by voice vote a total of only 625 cut-motions that stood in the name of opposition members on 59 demands for grants for different ministries.

A total of twelve MPs from Jatiya Party and BNP submitted their cut-motions on the budget.

They were, however, allowed to participate in the discussion on Law Ministry, Secondary and Higher Education Division and Health Services Division.

Later, Speaker Dr Shirin Sharmin Chaudhury applied guillotine to quicken the process of passing the demands for grants for different ministries without giving the lunch break.

Opposition and independent MPs were present at the House when the Appropriations Bill was passed in Parliament and they did not raise any voice against passing of the bill.

On June 3, Kamal while placing his 192-page budget speech, under the title “Bangladesh Towards a Resilient Future Protecting Lives And Livelihoods” highlighted various steps of the government to mitigate the shocks from the Covid-19 and the way forward to a sustainable economic recovery.

The total budget size of Tk603,681 crore for FY22 is 17.5% of GDP. Total allocation for operating and other expenditures has been set at Tk378,357 crore, while the allocation for the ADP is Tk225,324 crore.

The overall budget deficit for FY22 will be Tk214,681 crore, which is 6.2% of GDP while the budget deficit in the last fiscal year was 6.1%.

Out of the total deficit, Tk101,228 crore will be financed from external sources, while Tk113,453 crore from domestic sources of which Tk76,452  crore will come from the banking system and Tk37,001 crore from savings certificates and other non-bank sources.

The growth rate for FY22 has been fixed at 7.2% remaining consistent with the government’s long-term plan and taking the post-Covid-19 recovery situation into account. The inflation rate during this period is expected to remain within 5.3 %.

With having utmost priority to the programs and steps taken by the government to address the Covid-19 pandemic, the government also allocated Tk32,731 crore for the Health and Family Welfare sector in the next fiscal year, which was Tk29,245 crore in FY21.

The government has set the target for total revenue income in the  FY22 at Tk389,000 crore, which is 11.3% of the GDP.  Out of this, Tk330,000 crore will be collected through the NBR sources. Tax revenue from non-NBR sources has been estimated at Tk16,000 crore, while the non-tax revenue is estimated to be Tk43,000 crore.

The allocation for the social infrastructure sector in the budget is Tk170,510 crore, which is 28.25% of the total allocation, in which allocation for the human resources sector (education, health and other related sectors) will be Tk155,847 crore.

Allocation for the physical infrastructure sector is Tk179,681 crore or 29.76%, in which Tk74,102 crore will go to overall agriculture and rural development, Tk 69,474 crore to overall communications, and Tk27,484 crore to power and energy.

A total of Tk145,150 crore has been allocated for general services, which is 24.04% of the total allocation. Tk34,648 crore is allocated for public-private partnerships (PPP), financial assistance to different industries,   subsidies, equity investments in state-owned, commercial and financial institutions, which is 5.74 % of the total allocation.

Besides, there are allocations of Tk68,589 crore for interest payment, which is 11.36% of the total allocation, Tk5,103 crore for net lending and other expenses, which is 0.85% of the total allocation.

Considering the impact of the pandemic, the government has made an allocation of Tk107,614 crore in the social safety net sector, which is 17.83% of the budget and 3.11% of the GDP.

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