Budget in Bangladesh

Topics: Tax, Bank, Public finance, Monetary policy, Taxation, Interest rate / Pages: 7 (1643 words) / Published: Jul 31st, 2012
Generally An estimate of income and expenditure for a set period of time is called budget.
A budget is a financial document used to project future income and expenses. The budgeting process may be carried out by a country, individuals or by companies to estimate whether the country /person/company can continue to operate with its projected income and expenses.
The finance minister, AMA Muhith, has proposed national budget for fiscal year 2012-13 on June 7, 2012 with a total outlay of Tk 1,91,738 crore which consists of a deficit of Tk 52,068 crore or five percent of the GDP.
The budget fiscal year (FY) 2012-13 was announced by the Honorable Finance Minister on June 7, 2012, against the backdrop of mixed performance in the preceding year in terms of macroeconomic and fiscal management. Global economic outlook and Bangladesh's export prospects have also deteriorated markedly because of further deepening of the Euro-Zone Debt Crisis. The budget would be last full-year budget for the current government before facing elections and it has been unveiled in an environment of intensifying political uncertainty. The budget targets an acceleration of real gross domestic product (GDP) growth to 7.2 per cent and a sharp deceleration of inflation to 7.5 per cent, while consolidating Government's efforts towards improved macroeconomic stability and further alleviation of poverty.

Resources Coming from

Use of Resources

Implication of budget in our banking system

* In the original budget, deficit was estimated at 5.0 percent of GDP. It will now stand at 5.1 percent of GDP with a slight increase from the original budget. Out of this 1.3 percent of GDP will be financed from external sources and the rest 3.8 percent from domestic sources. Again out of this 3.8percent, 3.2 percent will be financed by borrowing from banking system. In order to maintain overall economic stability, we need to take measures to reduce our dependence on banking sector in

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