Bangladesh News

Implementation of both the revenue budget and development budget was far short of their targets in the first three months of the current fiscal year (FY).

In previous years, implementation of development budget usually fell short of the target while that of revenue budget exceeded target.

Revenue expenditure was 5.5 percentage point lower during July-September this year than that in the corresponding period of last FY.

Though an ambitious annual development programme (ADP) of Tk 30,500 crore was taken up this FY, only 10.4 percent of the total allocation could be used in the first three months.

Finance ministry sources said revenue expenditure was low due to delay in implementation of the national pay commission award, and because spending of funds for social safety net programme was yet to begin.

The government did not borrow from the banking system, rather repaid previous loans since implementation of both development and revenue budgets was slow, the source said.

It repaid Tk 2,313 crore while the target for borrowing from banks was Tk 16,755 crore.

In the current FY, revenue expenditure is supposed to be Tk 83,319 crore. Of the amount, Tk 17,829 crore or 21.4 percent was spent during July-September period.

During the corresponding period in last FY, revenue expenditure was Tk 20,025 crore, which was 26.9 percent of the total allocation.

The new pay scale would come into effect fully from July 1 this year, and Tk around 3,500 crore has been set aside for the purpose in the budget.

In the first three months of last FY, Tk 1,500 crore was given to Bangladesh Petroleum Corporation (BPC) for procuring fuel oil and Tk 1,200 crore was released to the agriculture ministry for providing subsidy on fertiliser.

In the current FY, no such expenditure has yet been made.

Finance ministry officials said the finance division has released about Tk 2,200 crore for export subsidy and safety net programme but it has not yet been spent.

Of the amount, Tk 900 crore has been released for export subsidy, Tk 405 crore for elderly people’s allowance, Tk 150 crore for allowance to the widows, Tk 455 crore for creating jobs for the ultra-poor, Tk 122 crore for freedom fighters and Tk 47 crore for the insolvent handicapped.

Many of the programmes started in October, and for this the expenditure was less.

A high official of the finance ministry said the revenue budget would be implemented fast towards the end of the FY. He however expressed doubt as to how much of the development budget could be implemented.

Meanwhile, a meeting with Prime Minister Sheikh Hasina in the chair recently discussed the matter, and several steps are being taken accordingly, the official said.