Bangladesh budget a macroeconomic tool comparison with previous budget of 2012 13 and 2013-14

1. Welcome to our
Presentation
ceremony

2. • Md. Enamul Islam Shemul
• Student of Patuakhali Science and
Technology University
• Faculty of Business Administration and
Management
• Session 2013-14

3. Report on
“Bangladesh budget: A Macroeconomic tool:
Comparison with previous budget of 2012-13 and
2013-14”

4. Objective of the Report
l. To know the budgeting system of Bangladesh.
2.To analysis the macro economic performance
using macroeconomic tools
3. To know the special features of National
Budget 2014-15.
4. To observe the frameworks and challenges of
National budget.

5. Introduction
In modern industrial economies, the budget is the
key instrument for the execution of government
economic policies. Because government budgets
may promote or retard economic growth in certain
areas of the economy and because views about
priorities in government spending differ widely,
government budgets are the focus of competing
political interests. A government budget is a legal
document that is often passed by the legislature,
and approved by the chief executive. For example,
only certain types of revenue may be imposed and
collected.

6. Budget
A budget is a quantitative expression of a plan
for a defined period of time. It may include
planned sales volumes and revenues, resource
quantities, costs and expenses, assets, liabilities
and cash flows. It expresses strategic plans of
business units, organizations, activities or events
in measurable terms. International Budget
Partnership regularly monitors global budget
information for the civil society.

7. Budgeting
Budgeting is the process of creating a plan to
spend your money. This spending plan is called a
budget.
Budgeting is simply balancing your expenses with your income. If
they don't balance and you spend more than you make, you will
have a problem. Many people don't realize that they spend more
than they earn and slowly sink deeper into debt every year.

8. Types of Government Budget

9. Cont.

10. As Bangladesh is a developing country the national
income of its is low. That’s why Bangladesh is following
deficit Budgeting. The budget has been proposed at the
time when, there is need for acceleration in economic
growth, poverty reduction, and creation of higher
employment opportunities, to implement the 7th Five
Year Plan; formulation of action plan to implement the
Sustainable Developments Goals (SDGs) is underway
and when need for formulating Least Developed
Countries (LDC) graduation strategy.
Budget of Bangladesh

11. Comparison with National Budget of
2012-13 and 2013-14

12. Tax Revenue
(NBR) Tax
• Taxes on Income and Profit
2012-2013 received Tk.35, 300 crore. 2013-2014 received Tk.48, 297 crore.
• Value Added Tax (VAT)
2012-2013 received Tk.40, 466 crore. 2013-2014 receivedTk.49, 956 crore.
• Import Duty
2012-2013 received Tk.14, 528 crore. 2013-2014 receivedTK.14, 629 crore.
• Export Duty
2012-2013 received Tk. 40 crore. 2013-2014 received TK.45 crore.
• Excise Duty
2012-2013 received Tk. 997 crore. 2013-2014 received Tk.1, 310crore.
• Supplementary Duty
2012-2013received Tk. 19,969 crore ,2013-2014 received TK.20, 853crore
Non-NBR Tax
• Narcotics and Liquor Duty
2012-2013 received Tk. 72 crore. 2013-2014 received Tk. 70crore.
• Taxes on Vehicles
2012-2013 received Tk. 1, 100 crore. 2013-2014 receivedTk. 1, 155crore
• Land Revenue
2012-2013 received Tk.608 crore. 2013-2014 receivedTk.640 crore.

14. Non-Tax Revenue
• Dividend and Profit
2012-2013-received Tk. 3,143 crore.2013-2014 received Tk. 4,693 crore.
• Interest
2012-2013 received Tk. 1,071 crore. 2013-2014 received Tk. 1,087 crore.
• Administrative Fees and Charges
2012-2013 received Tk.3, 773crore. 2013-2014 received Tk.4, 374crore.
• Fines, Penalties and Forfeiture
2012-2013 received Tk. 379 crore. 2013-2014 received Tk427 crore.
• Rents, Leases and Recoveries
2012-2013 Tk. 149 crore. 2013-2014receivedTk. 155 crore.
• Tolls and Levies
2012-2013 received Tk. 465 crore. 2013-2014 receivedTk. 475 crore.
• Railway
2012-2013 received Tk. 740 crore. 2013-2014 receivedTk. 1,000 crore.
• Post Offices
2012-2013 received Tk. 243 crore. 2013-2014 receivedTk. 264 crore.

16. Non-Development and Development
Expenditure
• Prime Minister’s Office
Both development and non-development prime minister’s office
expenditure has increased from 2012-2013 to 2013-2014 and
respectively the amount of increase is tk. 36 corers and tk. 54
corers.
• Election Commission
• Non-development expenditure and development expenditure
both have increased significantly from the year 2012-2013 to 2013-
2014. The amount of non-development expenditure was only tk.
207 corers in 2012-2013 but in 2013-2014 it is tk.1187 corers.
Economic Relations Division
• Here non-development budget from the year 2012-2013 to 2013-
2014 has decreased but development expenditure has increased by
tk. 10 corers.

17. Cont.
• Ministry of Public Administration
Ministry of public administration development
expenditure budget has decreased in the current year
from tk. 120 corers to tk.89 corers though non-
development expenditure budget has increased.
• Public Service Commission
In 2012-2013 non-development budget was tk. 21
corers but it has increased in 2013-2014 by tk. 10
corers. Development expenditure budget in 2012-2013
was tk.12 corers and in 2013-2014 it is zero.

18. • Local Government and Rural Development
The total local government and rural development
budget including development and non-development
sector has increased by tk.585 corers from 2012-
2013 to 2013-2014.

19. 14215 14800
13900
14000
14100
14200
14300
14400
14500
14600
14700
14800
14900
Budget 2012-13 Budget 2013-14
Total Government & Rural Development
Total Government & Rural Development

20. • Public Order and Safety
Budget of public order and safety expenditure has slightly
increased from the year 2012-2013 to the year 2013-2014 by
tk. 1319 corers.
9218 10537
8500
9000
9500
10000
10500
11000
Budget 2012-13 Budget 2013-14
Public Order and Safety
Public Order and Safety

21. • Education and Technology
In education and technology sector including development expenditure
budget has also increased from the year 2012-2013 to the year 2013-2014 by
tk. 3948 corers and it was tk. 22145 corers in 2012-2013.
22145
26093
20000
21000
22000
23000
24000
25000
26000
27000
Budget 2012-13 Budget 2013-14
Total Education and Technology
Total Education and Technology

22. • Social Security and Welfare
Social security and welfare expenditure both in development and non-development
sector in 2012-2013 was tk. 10981 corers and in 2013-2014 this budget has increased
and it becomes tk. 12336 corers.

23. • Housing
Ministry of housing and public works budget
was tk. 1459 corers in 2012-2014 and after
increasing it becomes tk. 1779 corers in 2013-
2014.

24. • Recreation, Culture and Religious Affairs
Both in development and non-development
sector recreation, culture and religion
expenditure has increased by tk.145 corers from
2012-2013 to 2013-2014.

25. Fuel and Energy
Though non-development budget has decreased
but overall budget has increased in fuel and
energy sector by tk. 1807 corers in 2013-2014.

26. • Agriculture
A huge and mentionable change is noticed in
the budget from the year 2012-2013 to 2013-
2014. The amount of budget has increased in
both development and non-development
expenditure by tk. 3014 corers in 2013-2014.

27. • Industrial and Economic Services
In industrial and economic service sector
development and non-development
expenditure budget was tk. 2769 corers in 2012-
2013 and after increasing, it has become tk.
3206 corers in 2013-2014.

28. • Transport and Communication
The transportation and communication budget
has significantly increased from the year 2012-
2013 to the year 2013-2014. In 2012-2013, this
budget was only tk. 13317 corers whereas in
2013-2014 it becomes tk. 20596 corers.

29. • Foreign Assistance
• Grants
• In budget 2012-2013 the amount of grants in foreign
assistance was 4,938 crore. And in case of budget 2013-2014
the amount is 6,044. So, there is a significant change in this
sector.
• Loans
• The amount of loans in budget 2012-2013 was 18,685 crore
and in budget 2013-2014 it is 20,398 crore. So, there is a
significant change also.

30. Foreign Assistance

31. • Use of foreign assistances
• In budget 2012-2013 the amount of using foreign assistances was 23,623
crore and in budget 2013-2014 it is 26,442 crore. So, there is an increase
in this section.
16095
23550
2402 2892
18497
26442
0
5000
10000
15000
20000
25000
30000
Budget 2012-13 Budget 2013-14
Total ADP
Others
.
Total use of Foreign Assistance

32. Findings
1. A very positive feature relates to subsidies given on
food, oil, agricultural inputs aimed at both raising
productivity and alleviating poverty.
2. Extending social safety net to more ultra–poor people
is highly worthy
3. Reduction of existing concessionary rate of duty on the
import of machinery.
4. The continuation of tax will be helpful for employment
and income generation.
5. Government can’t draw a developed picture of a
country in a single budget.
6. Taxes on IT/Computer accessories are inappropriate
right at this moment.

33. Conclusion
The fiscal measures fall short of augmenting the required
investment and productivity growth to achieve the targeted
growth of 7.3 percent for the next fiscal year. Like the previous
budgets, policies that focus mainly on stabilization, but pays little
attention to proper allocation and distribution is more likely to
even fail in stabilization of the economy as well. Second,
numerous un-coordinated seemingly less than effective
programmes relating to social safety nets need to shift its
emphasis on social protection through innovation in social
policies.