The government has planned to increase subsidy, incentive and loans to different sectors in the 2019-20 budget. The amount may be around Tk 421 billion, which is 42.96 billion more than the current one.
Finance ministry sources say that the budget will be made to serve the rural people with plans to increase allotment for rural infrastructure.
Plans have also been taken to increase government and private investment. In the proposed budget, proposals were made to allot 1.5 percent for incentive and loans.
To increase employment as per electoral manifesto, internal loan flow will be raised by 17 percent.
The most subsidies are given to agriculture and food while incentives go to garment export, agriculture and jute.
Cash loan is given to Bangladesh Petroleum Corporation, BPC, Power Development Board, PDB and other bodies though loans given to BPC and PDB are deemed as subsidy since the government does not get back the loan.
Sources say that in the 2019-20 fiscal year, proposal has been made to keep Tk 50 billion as cash loan though no allotment has been made for Bangladesh Petroleum Corporation and Power Development Board.
This year, efforts are being taken to transform rural markets into economic power houses and create employment, develop small micro industries and expand trade.
With emphasis on rural development, the 2019-20 budget will take satellite, TV, online banking and other facilities to rural Bangladesh.
Finance minister, A H M Mustafa Kamal said: “the biggest emphasis will be on employment and poverty eradication.”
budget may be declared in the second week of June and the size may be Tk 5.25 trillion, which is Tk 600 billion more than the current budget.
Former adviser to the caretaker government, Dr. A B M Mirza Azizul Islam, said: “The government must be alert in fulfilling the promises made to the people.”
The new budget will also include initiatives to bring foreign investment.
From 1 Jul, the sale of online savings certificate will begin and new VAT law will be launched.