This document outlines the syllabus for the course ECO315: Public Finance taught by Mir Tanzim Nur Angkur at East West University. It discusses key topics that will be covered in the course including the size and growth of government, distribution of government spending and revenue sources, budget deficits, debt service, and major policy issues facing Bangladesh's economy such as expenditures on education, health, and social safety net programs. Charts and data from sources like the World Bank are provided to analyze these topics in the Bangladesh context.

1. ECO315: Public Finance
Course Instructor: Mir Tanzim Nur Angkur(MTNA)
Senior Lecturer, Dept. of Economics
East West University
Why Study Public Finance?
In the context of Bangladesh Economy
3/21/2023 Fall_2017 1

2. What makes Public Finance so compelling?
• The dominant role that governments play in
our daily lives.
• It is devoted to the study of how government
policy especially tax and expenditure policy
affects the economy as a whole and the
welfare to its citizens.
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3. Motivation behind study Public Finance
• As a student of economics we are interested
to figure out the role that government plays
through analyzing the keys facts about
government.
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4. Key facts about government
• The Size and Growth of Government
• Distribution of Government Spending
• Distribution of Revenue Sources
• Spending, Taxes, Deficits and Debt Service
• Major Policy Issues facing the Bangladesh
Economy.
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5. The size and Growth of Government
0
5
10
15
20
25
30
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Government
Expenditure(%
of
GDP)
Years
Government Expenditure(% of GDP) in Selected South Asian countries
Bangladesh
India
Pakistan
Sri Lanka
South Asian Average
Source: WDI, World Bank
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6. Distribution of Government spending
Distribution of Government
Expenditure by Broad Sectors,
2016-17(3406.05 Billion BDT)
Distribution of Government
Expenditure by Broad Sectors,
2007-08 (796.13 Billion BDT)
Local Govt. &
Rural
Development
7%
Transport &
communicati
on
10%
Education
and
Information
Technology
15%
Interest
Payment
12%
Health
5%
Agriculture
4%
Social
Security &
Welfare
5%
Energy and
power
4%
Defence
6%
Public
Administartio
n
10%
Pension
5%
Public
order &
Safety
5%
Subsidies
5%
Others
7%
Allocation(%)
Local Govt. &
Rural
Development
9%
Transport &
communicati
on
8%
Education
and
Informatio
n
Technolog
y
15%
Interest
Payment
13%
Health
7%
Agriculture
6%
Social
Security &
Welfare
5%
Energy and
power
6%
Defence
5%
Public
Administartio
n
2%
Pension
4%
Public
order &
Safety
5%
Subsidies
5%
Others
10%
Allocation(%)
Source: Budget FY 2016-17 and FY 2007-08, Ministry of Finance, GOB
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7. Broad Sectors of Allocation
Broad Sectors in FY 2016-17
Interest Payment
Education and Information Technology
Defense
Public Order & Security
Pension
Transport & Communication
Social Security & Welfare
Health
Agriculture
Subsidies
Local govt. & rural development
Public Administration
Housing
Recreation , Culture & Religious Affairs
Industrial and Economic Services
Broad Sectors in FY 2007-08
Interest Payment
Education and Information Technology
Defense
Public Order & Security
Pension
Transport & communication
Social Security & Welfare
Health
Agriculture
Subsidies
Local govt. & rural development
Miscellaneous Non development Investment
Public Administration
Housing
Source: Ministry of Finance, GOB
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8. Distribution of Revenue Sources
0
10000
20000
30000
40000
50000
60000
70000
80000
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
Crores
Taka
Fiscal Years
Direct Tax
Indirect Tax
Source: National Board of Revenue(NBR), GOB
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9. Share of Revenue Sources
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
61.45
61.59
60.18
60.38
75.68
74.54
72.83
71.91
70.51
69.67
65.45
63.86
38.55
38.41
39.82
39.62
24.32
25.46
27.17
28.09
29.49
30.33
34.55
36.14
Bangladesh: Share of Revenue Sources, FY2002-03 - FY2013-14
Share of Indirect Tax Share of Direct Tax
Source: National Board of Revenue(NBR), GOB
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9

10. Expenditure & Total Revenue
0
2
4
6
8
10
12
14
16
18
20
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
(%
of
GDP)
Years
Bangladesh: Total Revenue and Expenditure,2001-2012
Total Revenue Expenditure
Source: M/O Planning and Finance Division, M/O Finance.
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11. Budget Deficits
-5.2
-4.7
-3.7 -3.5
-4.4
-3.4
-2.2
-6.1
-4.1
-4.8
-5.5 -5.4
-7.0
-6.0
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
DEFICIT(%
OF
GDP)
Bangladesh Budget Deficits ,2001-2012
Source: IMED, M/O Planning and Finance Division, M/O Finance
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12. Debt Service
1.20
1.24
1.05
0.96
1.12
0.94
1.19
0.95
0.92
0.89
1.15
1.08
0.80
0.85
0.90
0.95
1.00
1.05
1.10
1.15
1.20
1.25
1.30
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
(%
OF
GDP)
YEARS
Bangladesh Debt Services,2001-2012
Source: WDI, World Bank
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13. Major Policy Issues facing the
Bangladesh Economy.
Expenditure on Education
 Expenditure on Health
Social Safety Net Programs
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14. Expenditure on Education:
South Asian Perspective,2000 & 2004
2.13
4.25
1.84
2.98
0.00 1.00 2.00 3.00 4.00 5.00
Bangladesh
India
Pakistan
Nepal
Government Expenditure on
Education(% of GDP),2000
0.00 1.00 2.00 3.00 4.00
Bangladesh
India
Pakistan
Nepal
1.94
3.29
1.95
3.17
Government Expenditure on
Education(% of GDP), 2004
Source: WDI, World Bank
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15. Expenditure on Education:
South Asian Perspective,2009 & 2012
0.00 1.00 2.00 3.00 4.00 5.00
Bangladesh
India
Pakistan
Nepal
Sri Lanka
1.94
3.21
2.59
4.66
2.06
Government Expenditure on
Education(% of GDP),2009
0.00 1.00 2.00 3.00 4.00
Bangladesh
India
Pakistan
Sri Lanka
2.05
3.83
2.14
1.50
Government Expenditure on
Education(% of GDP),2012
Source: WDI,World Bank
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16. Expenditure on Health:
South Asian Perspective,2000 & 2004
0.00 2.00 4.00 6.00
Bangladesh
India
Pakistan
Nepal
Sri Lanka
South Asian Average
2.33
4.26
2.79
5.43
3.77
3.72
Health expenditure
(% of GDP),2000
0.00 2.00 4.00 6.00
Bangladesh
India
Pakistan
Nepal
Sri Lanka
South Asian Average
2.62
4.22
2.56
5.82
4.28
3.90
Health expenditure
(% of GDP),2004
Source: WDI,World Bank
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17. Expenditure on Health:
South Asian Perspective,2008 & 2012
0.00 2.00 4.00 6.00 8.00
Bangladesh
India
Pakistan
Nepal
Sri Lanka
South Asian Average
2.85
4.34
3.26
6.44
3.44
4.07
Health expenditure
(% of GDP),2008
0.00 2.00 4.00 6.00
Bangladesh
India
Pakistan
Nepal
Sri Lanka
South Asian Average
3.08
4.39
2.76
5.89
3.21
3.87
Health expenditure
(% of GDP),2012
Source: WDI, World Bank
3/21/2023 Fall_2017 17

18. Social Safety Net Programs:
South Asian Perspective,2006 & 2009
Bangladesh
Pakistan
Sri Lanka
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
19.71 17.92
4.01
(%
OF
TOTAL
WELAFREOF
BENEFICIARY
HOUSEHOLDS)
Adequacy of Social Safety Net
Programs,2006
Bangladesh Pakistan Sri Lanka
Bangladesh
Pakistan
Sri Lanka
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
4.00
12.00
3.40
(%
OF
TOTAL
WEFARE
OF
BENEFICIARY
HOUSEHOLDS)
Adequacy of Social Safety
Net Programs ,2009
Bangladesh Pakistan Sri Lanka
Source: WDI, World Bank
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19. Adequacy of social safety net programs
(% of total welfare of beneficiary households)
Definition: Adequacy of social safety net programs is measured by
the total transfer amount received by the population participating
in social safety net programs as a share of their total welfare.
Welfare is defined as the total income or total expenditure of
beneficiary households.
Common examples of Social safety net programs may includes:
• child, family and orphan allowances, birth and death grants,
disability benefits, and other allowances;
• food stamps and vouchers, food rations, supplementary
feeding, and emergency food distribution;
• housing allowances, scholarships, fee waivers, health subsidies,
and other social assistance;
• cash for work and food for work
Estimates include both direct and indirect beneficiaries.
(World Development Indicators, World Bank)
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19