7% of budget deficit met in first six months of FY17

The government has been able to meet 7% of the budget deficit in the first six months of the fiscal year 2016-17, according to official data. The government estimate of fiscal deficit for the year is Tk97,853 crore. Of the figure, a sum of Tk6,542 core has been met in the July-December period. The state borrowed 117.09% of total estimate in the form of selling saving instruments within six months of the current fiscal year. As per the latest data, the sales of National Savings Deposit stood at Tk22,962 crore during the period. This is also 58.20% higher than that in the same period in the fiscal year 2015-16. During the July-December period of the current fiscal year, the net amount of National Savings Deposit certificates totaled Tk31,310 crore. Finance Division officials said the country’s budget expenditure pattern has not come out of the May-June syndrome as most of the spending of budget allocation happen at the last couple of months of a fiscal year. Most of the time the spending annual development programme by the ministries and divisions has been lower. As a result, the total budget implementation process remains questionable, the officials said. According to the Implementation Monitoring and Evaluation Division, the government’s development spending rose almost 31% year to year to Tk45,532 crore in the first eight months of the fiscal year but in the same period last fiscal year only 34% of the total allocation was used up. Officials said a 35%-45% of the total budget deficit should be met within six months of the year. “But the government agencies have not got enough capacity to increase development expenditure,” said an official. As per the data by the Controller General of Accounts, the tax revenue collection was Tk76,009 crore or 37.41% of total budget estimate during the six months, which is better than last year’s. Last year the earning of National Board of Revenue was Tk67,659 crore. The mop up from non-tax revenue earnings stood at Tk10,227 crore in six months but the total estimated is Tk32,350 crore, according to the NBR data.