New budget comes with country transforming initiatives

Shafiqul Islam
Published : 00:01, May 23, 2019 | Updated : 13:08, May 23, 2019

National Parliament House of Bangladesh. BANGLATRIBUNE/Sazzad HossainThe budget for the fiscal year 2019-20 will reflect the 100 birth anniversary of Bangabandhu Sheikh Mujibur Rahman. However, the main focus will be on “my village, my town” programme and the creation of jobs.
As per the declaration of the manifesto, villages will be developed in a planned way, featuring Internet, power, gas and all other civic amenities. The programme will be implemented by the ministry of local government and rural development.
Finance ministry sources say that the initial expenditure of the new budget will be Tk 5231.9 billion, which is 18.1 percent of the GDP.
The size of the current budget is Tk 4645.73 billion. In the forthcoming budget, the expenditure will rise by Tk 586.17 billion.
In the new budget, several sectors are being given priority including skill development.
Several plans are also being taken for overall improvement of human resources. In addition, priority is given to agriculture, rural development and employment generation.
The other issues to be given importance are: building capacity to tackle climate change, usage of digital technology to provide government services and the implementation of the digital Bangladesh dream.
Finance minister, AHM Mustafa Kamal, says: “In the new budget, improvement of infrastructure, education, health and employment will be given priority. Funds will be allocated to complete the mega projects swiftly; reforms will also be carried out in banks and the VAT sector.”
He also said that from Jul 1, new VAT law will be implemented.
In 2019-20, the targeted revenue has been fixed at Tk 3778.1 billion, which is 13.1 percent of GDP.
In the current year, budget deficit is Tk 1252.93 billion.
In the new Annual Development Plan (ADP), Padma Bridge and Padma rail connection will be given top priority.
The proposed allotment for transport is Tk 528.06 billion, which is 26.05 percent of ADP, for power sector, the earmarked amount is Tk 260.1713 billion, which is 12.83 percent of ADP.
For infrastructure, the allotted amount is Tk 243.24 billion while for education it’s Tk 213.79 billion.
For science, information and communication it’s Tk 175.41 billion while for rural development, the allotted amount is Tk 151.57 billion.
There will be wide range of reforms in banks and VAT sectors.