Country’s Huges budget, with 1.63 trillion taka (US$22 billion), is nearly 28% bigger than that the current Fiscal Year which ends on June 30. The budget will see a deficit of Tk 452.04 billion excluding grants,finance minister Abul Maal Abdul Muhith had said while tabling it on June 9.
Abul Maal Abdul Muhith projected an increase the fiscal deficit to 5% of gross domestic product (GDP) targeted at 8.9 trillion takas, up from a revised 4.4% of GDP in the fiscal year that ends this month. To meet the deficit,government plans to borrow around 130.58 billion takas from foreign sources and 272.08 billion takas locally
Abul Maal Abdul Muhith said the government will take “unpopular” decisions such as reducing subsidies, money supply and private-sector credit growth to bring down inflation to 7.5% from a current 10.7% as recorded in April and a revised 8% full-year inflation target for the 12 months to June 31, 2011
The All budget outlay, the government proposes to spend 1.03 trillion takas in the non-development sector, including 165.19 billion takas to repay internal debts and 14.78 billion takas to pay back foreign loans; 506.42 billion takas was earmarked for development activities
He parmanant 460 billion takas for the Annual Development Program (ADP), a possibly ambitious target as only 60% of the present year’s 358 billion takas for ADP has been implemented.
The Daily Star reported, a total of Tk 957.85 billion is expected from tax govment and Tk 226 billion from non-tax govmant. The finance minister expects foreign grants of Tk 4,938 crore for the upcoming budget.
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