• Sunday, Sep 27, 2020
  • Last Update : 10:48 pm

Budget FY21: Deficit will be 6% of GDP

  • Published at 06:18 pm June 11th, 2020
web-deficit
Representational photo BIgstock

The finance minister has proposed a national budget of TK568,000 crore for the next fiscal year

The government has forecast that the overall FY2020-21 budget deficit will be Tk190,000 crore, which is 6% of the GDP.

“It is to be noted that deficit stood at 5% in the last fiscal year,” said Finance Minister AHM Mustafa Kamal, while proposing a national budget of TK568,000 crore — which is 17.9% of GDP — for the next fiscal year in parliament on Thursday.

Total allocation for operating and other expenditures is estimated at Tk362,855 crore, while the allocation for the Annual Development Program (ADP) is Tk205,145 crore, he said.

Out of the total deficit, Tk80,017 crore will be financed from external sources, while Tk109,983 crore from domestic sources — of which Tk84,983 crore will come from the banking system and Tk25,000 crore from savings certificates and other non-bank sources, said the minister.

However, economists opined that it could be 7% to 8% of GDP as the government will have to meet additional expenses, especially for the social safety net to feed the poor.

“In the backdrop of the revenue collection, the government’s non-development expenditure will go up sharply to meet the expenses created by the extra pressure of the new poor under the social safety net,” Selim Rahin, the executive director of SANEM, told Dhaka Tribune.

As a result, he said, the budget deficit will go up. “I don’t mind if it is 7% to 8% for the next two fiscal years to fight the fallout of the Covid-19 pandemic.”

The finance minister told parliament that the budget deficit for the current fiscal year was estimated at Tk145,380 crore. “However, the deficit in the revised budget has been set at Tk153,513 crore, which is 5.5% of GDP.

“Against the original budget deficit, the estimation for external financing was Tk68,016 crore, which has been reduced to Tk56,163 crore in the revised budget. From domestic sources, the estimation of financing from the banking system is Tk82,421 crore.”

53
52
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail