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| SUMMARY
OF BUDGET ESTIMATES 2004-2005 |
(taka
in crore)
| Statement
No. |
Description |
Budget
2004-05 |
Revised
2003-04 |
Budget
2003-04 |
1/2. |
RECEIPTS
Consolidated Fund - Receipts |
|
|
|
| |
Revenue
Grants
Lending and Advance Repayments
Domestic Loans
Foreign Loans
Transaction with IMF |
41,085
1,889
1,100
8,893
9,441
495 |
34,892
2,663
1,080
9,920
8,421
450 |
35,652
2,597
1,027
7,450
9,805
376 |
| |
62,903 |
57,426 |
56,907 |
| |
T
& T Bond
Borrowing from Banking System |
200
2,470 |
200
1,300 |
200
2,603 |
| |
Total
- Consolidated Fund - Receipts : |
65,573 |
58,926 |
59,710 |
| 2.
|
Public
Accounts of the Republic - Receipts |
|
|
|
| |
Public
Account |
14,894 |
14,892 |
12,763 |
| 3.
|
Total
- Public Accounts of the Republic - Receipts :
TOTAL RECEIPTS : |
|
|
|
4/6/7
5/8 |
Consolidated
Fund - Expenditure |
47,390
22,683 |
43,815
19,585 |
42,348
20,822 |
| |
Total
- Consolidated Fund - Expenditure : |
70,073 |
63,400 |
63,170 |
| 9.
|
Public
Accounts of the Republic - Payment |
|
|
|
| |
Public
Account |
10,394 |
10,418 |
9,303 |
| |
Total
- Public Accounts of the Republic - Payment : |
10,394 |
10,418 |
9,303 |
| |
TOTAL
EXPENDITURE : |
80,467 |
73,818 |
72,473 |
Bangladesh
has received global appreciation for attaining outstanding
success in alleviation of Human Poverty in education,
health and nutrition. Bangladesh have graduated from
the low level to the mid-level group of countries
in the Human Development Index according to the UNDP's
Human Development Report, 2003. In primary and secondary
education Bangladesh has already achieved the Millennium
Development Goal of eliminating gender disparity
between boys and girls. Providing primary education
to almost 97 percent children has already been ensured.
This rate is the highest amongst the developing countries.
Bangladesh has achieved remarkable success in reducing
infant and maternal mortality as well as malnutrition
and has substantially improved food security.
For reducing income-poverty,
it is necessary to create large-scale employment opportunities
along with actions to directly involve the poor in
income-generating activities. The achievement of Bangladesh
in reducing income-poverty in the last decade has
also been remarkable. In the past decade the income-poverty
has reduced from 58.8 percent to about 49.8 percent.
Bangladesh is implementing from this year the Medium
Term National Strategy for Economic Growth, Poverty
Reduction and Social Development. The goals it aim
to achieve by the year 2015 through implementation
of this Three-year Rolling Plan are to: reduce by
half the current level of poverty through massive
employment generation; eradicate extreme poverty;
provide quality primary education to all children;
maintain gender equality for boys and girls in primary
and secondary education and significantly reduce infant
and maternal mortality and malnutrition.
The GDP
growth rate has to be raised to 7 percent annually
on average to achieve poverty reduction target by
2015. Substantial public as well as private investment
will be needed to achieve this desired growth. Immediately
after coming to office, in the first year, the government
has reduced the budget deficit to a sustainable level
and restored macro-economic stability through various
policy measures. The present government believes that
maintaining macro-economic stability is a precondition
for economic growth and poverty reduction; hence budget
deficit has to be kept at sustainable level. Public
investment would be increased through mobilization
of additional domestic resources and through increasing
concessional foreign assistance. Dependence on foreign
assistance would be gradually reduced to attain self-reliance.
Our revenue/GDP ratio is about 10.5 percent whereas
expenditure/GDP ratio is 14.5 percent.
Recent Economic Trends
Budget
is the main instrument for implementing economic policies.
Let me now highlight the achievements of the government
attained through implementation of the budget for
the year 2003-04. After last year's GDP
growth of 5.3 percent, this year the estimated growth
is 5.52 percent. In 9 months upto March 2004, there
has been a 14.7 percent growth in exports, compared
to 6.2 percent during the same period last year. During
this time import has increased by 15.4 percent, compared
to the growth of 7.4 percent last year. Due to 11.4
percent increase in the remittances from expatriate
Bangladeshis during the same period, the current account
surplus rose to the tune of US$350 million. The overall
surplus in the Balance of Payment stood at US$227
million. Foreign exchange reserve in October 2001,
when we came to power, was US$1 billion. Now this
reserve has increased to US$2.6 billion, enough to
pay for three months' import bills.
Adequate growth in private sector credit for productive
investment has been ensured in fiscal 2003-04 to accelerate
investment and economic growth. Industrial term-loan
has increased by 73.9 percent, which undoubtedly indicates
further acceleration of the economy in the future.
Mainly due to increase in import price of oil and
food staff in the international market there was some
inflationary trend in the first part of the fiscal
year 2003-04. The government adopted a careful and
restrained monetary policy along with other measures
like refixation of import duties in order to contain
inflation to a reasonable level. As a result, inflation
started showing downward trend and in March 2004 it
came down to 5.9 percent.
Revised Budget 2003-04
The estimated revenue receipt for the current
fiscal year was Taka 36,171 crore. In the revised
budget, it has been refixed at Taka 35,400 crore.
The revised estimate has been lowered due to reduction
of duties of certain commodities after the budget
and also non-realisation of arrear revenue from some
organisations. In the original budget of the current
fiscal year the size of the Annual Development Programme
(ADP) was Taka 20,300 crore. The ADP has been downsized
to Taka 19,000 crore due to slow progress of implementation
of some projects. The combined estimated development
and non-development expenditure for the year 2003-04
was Taka
51,980 crore, which in the revised budget has been
refixed at Taka 49,367 crore. As a result, budget
deficit will come to 4.2 percent of GDP
from estimated 4.8 percent.
The Budget for the FY 2004-05
The revenue receipt for the FY 2004-05 has been estimated
at Taka 41,300 crore, which is 16.7 percent higher
than that of the revised budget of the current fiscal
year. For FY 2004-05 the ADP has been estimated at
Taka
22,000 crore which is 16 percent higher than that
of the revised ADP of the current fiscal year. Besides,
in the proposed budget for fiscal 2004-05, Taka 979
crore has been earmarked for non-ADP employment generation
programme and for other development expenditures.
In addition, Taka 860 crore has been allocated for
development programme financed from revenue budget.
Therefore, in FY 2004-05 development related expenditure
will come to Taka 23,839 crore. In the proposed budget
for FY 2004-05, priority has been given to sectors
involved in poverty reduction and human development
such as agriculture, irrigation, labour and employment,
rural development, education, health, women, child
and youth development, water resources, energy and
power, infrastructure, railway and inland water transport,
rural infrastructure, telecommunication, foreign investment
and export inducing sectors.
55.5 percent of the ADP for FY 2004-05 will be financed
from resources, while the remaining 44.5 percent will
come in the form of foreign assistance. Total expenditure,
both development and non-development has been estimated
at Taka 57,248 crore which is 16 percent higher than
that of the revised budget. 62 percent of development
budget and 42 percent of non-development budget have
been allocated for direct and indirect poverty reducing
programmes. In FY 2004-05, the estimated budget deficit
will be 4.3 percent of the GDP.
| Details
of development Expenditure |
| Economic
Analysis Non-development Expenditure |
Summary
by Ministry/Division
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| Sources |
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