Jatiya Sangsad has approved the 48th national budget for FY 2019-20 with an allocation of Tk 5,23,190 crore targeting to achieve 8.20 percent of growth. This is the biggest budget since the creation of Bangladesh. The FY 19-20's budget is styled 'Bangladesh on a Pathway to Prosperity' to be effective from July 01 (Monday), setting the target to contain the inflation rate at 5.5 percent.
The 20th budget, placed by the Awami League government in its five terms since independence in 1971, eyes for attaining a the set target of GDP growth based on the provisional GDP growth rate estimation of 8.13 percent in the outgoing fiscal (FY19). In the first hour of the session on Sunday, Finance Minister AHM Mustafa Kamal moved the Appropriations Bill, 2019 seeking a budgetary allocation of Tk 5,23,190 crore and soon it was passed by voice votes of the lawmakers.
Opposition and independent MPs were present in the House when the Appropriation Bill was passed in Parliament and they did not raise a voice against passing the bill. Earlier on Saturday, the parliament session had passed the Finance Bill, 2019, without any significant changes as it was found that the proposed budget did not impose additional tax, but there was nosuggestion as to how to increase new tax net.
The budget for the next fiscal showed that government’s revenue earnings would largely depend on NBR-generated (National Board of Revenue) tax (Tk3,25,600 crore) followed by other sources like non-tax revenues (Tk 37,710 crore) and non-NBR tax (Tk 14,500 crore). Still, there will be an income-expenditure mismatch of Taka 1,45,380 crore.
Considering the interest of poor and marginalized people, the finance minister proposed to provide VAT exemption on the production and supply of bread, hand-made biscuits and hand-made cakes up to value of Taka 150, per kg. But the proposed budget has imposed VAT on the products such as plastic and aluminum items, soybean oil, palm oil, sunflower oil, mustard oil which have been enjoying the exemption benefit for a long time. The budget has also imposed 5 per cent supplementary duty on ice-cream and proposed increase supplementary duty from 5 to 10 per cent of the services provided through mobile phone SIM/RIM card.
To curb gold smuggling, Mustafa Kamal proposed reduction of duty of gold under passenger (non-tourist) and baggage (import) rules-2016 and for commercial import, he proposed from Taka 3,000/11.664 gm to Taka 2,000/11.664gm. The biggest budgetary allocations of 13.2 percent go for education and technology—followed by: 9.8 percent for public administration, 8.7 per cent for defense, 7.2 percent for public order and safety, 6.5 per cent for social security and welfare, 4.3 per cent for health, and 2.7 percent for transport and communication.
A sizeable amount has been kept to expedite the “Mega Projects,” that include 'Padma Multipurpose Bridge Project', 'Padma Rail Bridge Project', 'Rooppur Nuclear Power Project', 'Rampal Coal Based Power Project', 'Chittagong-Dohajari to Ramu-Cox’s Bazar and Ramu-Gundum Railway Construction Project', 'Dhaka Mass Rapid Transit Development Project', 'Construction of Payra Sea port (First Phase) Project', 'Sonadia Deep Sea port', 'Matarbari Ultra Super Critical Coal Fired Power Project', and'Maheshkhali Floating LNG Terminal Project'.
Leader of the house, Prime Minister Sheikh Hasina, Deputy leader of the opposition, RawshanEarshad, Finance Minister, AHM Mustafa Kamal, other ministers and lawmakers from both treasury and opposition bench took part in the discussion on supplementary budget and main budget from last June 13th to 30th.
The approved budget of Tk 5,23,190 crore is 18 percent more than the revised budget of outgoing fiscal of 2018-19.Development expenditure has been fixed at Tk 2,11,683 crore which is 22 per cent higher than that of the last fiscal. The operating expenditure is estimated at Tk 3,10,262 crore, revenue earning target is fixed at Tk 3,77,810 crore and the deficit of GDP in the budget is 5 percent.
Expenditure for Finance Division has been fixed at Tk 2,26,176 crore. The least expenditure is allocated for the President's office which is Tk 24 crore 37 lakhs. Allocation forDefense is Tk 32,520 crore, Local Government Division 34,241 crore, PMO head Tk 3,528 crore 73 lakhs and for National Parliament Tk 327 crore 32 lakhs.
Allocation for cabinet division expenditure is Tk. 241 crore, Election Commission (EC) Secretariat, 1,920 crore, Public Administration Ministry Tk. 2,941 crore, Public Service Commission (PSC), 102 crore 27 lakh, Internal Resources Division Tk 2,899 crore 47 lakh, Bank and Financial Institutes Division Tk 3,041 crore 56 lakh, Economic Relations Division (ERD) Tk l16,032 crore.
Planning Division allocation is Tk 1,231 crore, Implementation & Evaluation Division Tk 149 crore 10 lakhs, Statistics and Information Management Division Tk 375 crore 34 lakhs, Commerce Ministry Tk 632 crore, Foreign Ministry Tk 1,620 crore53 lakh crore, Armed Forces Division 38 crore 32 lakhs, Law & Justice Division Tk 1,652 crore, Public Security Division Tk 21,923 crore 17 lakh, Legislative and Parliamentary Affairs Division 35 crore 38 lakhs, Primary and Mass Education Ministry Tk 24,041 crore 34 lakh , Science and Technology Ministry 16,438 crore 85 lakhs.
Healthcare sector allocation is Tk 19,944 crore 30 lakhs, Information and Communication Technology Ministry Tk 1,930 crore 39 lakh, Social Welfare Ministry Tk 6,881 crore 26 lakh 50,000, Women and Children Affairs Ministry Tk 3,784 crore 79 lakh, Labour and Employment Ministry Tk 313 crore 48 lakh, Housing and Public Works Ministry 6,603 crore 84 lakhs, Information Ministry Tk. 989 crore 15 lakh and Cultural Affairs Ministry allocation is Tk 575 crore 78 lakh.
Religious Affairs Ministry allocation Tk 1,337 crore 92 lakh, Youth & Sports ministry, Tk 1, 489 crore 12 lakh, Rural development and Cooperatives Division Tk 2,449 crore 47 lakh, Industries Ministry Tk 1,555 crore 91 lakh, Textile and Jute Ministry Tk 800 crore 16 lakh, Energy and Mineral Resources Division, Tk 1,985 crore 79 lakh, Agriculture Ministry, 14,53 crore 40 lakh and Fisheries and Livestock Ministry Tk 2,932 crore 33 lakh 49,000.
Allocation for Environment and Forest Ministry is Tk. 1,496 crore 31 lakh, Land Ministry Tk 1,943 crore 80 lakh, Water Resources Ministry Tk 7,932 crore 45 lakh, Food Ministry Tk 17,152 crore 99 lakh and Disaster management & relief Ministry allocation is Tk 9,871 crore 51 lakh. Besides the FY 2019-20 budget has given allocation of Tk 29,274 crore 8 lakh for Roads and Highways Division, Railway Ministry Tk. 16,457 crore 90 lakh, Shipping Ministry, 3,832 crore 77 lakh, Civil Aviation and Tourism Ministry Tk 3,426 crore 34 lakh, Post and telecommunication Ministry Tk 3,460 crore 91 lakh, CHT Affairs Ministry Tk 1,194 crore 48,32,000, Power Division, Tk 26,064 crore 69 lakhs, Liberation War Affairs Ministry Tk 4,553 crore 48 lakh, Expatriate Welfare & Overseas Employment Ministry Tk 590 crore 94 lakh, Anti Corruption Commission (ACC) Tk 140 crore 17 lakh, Bridges Division Tk 8,563 crore 53 lakh, Technical and Madrasa Education Division Tk 7,453 crore 60 lakh, Safety Service Sector Tk 3,694 crore 92 lakh and Health Education and Family Welfare Division allocation is Tk 5,787 crore 85 lakh.