Finance Minister AMA Muhith says the focus of the Tk 4.6 trillion 2018-19 budget will be on human resource development, followed by priorities for the Transport and Energy sectors. For mega projects, there will be special allocations.
Finance Ministry sources indicate that despite reducing taxation for the corporates, the government will seek to widen the tax net. On the welfare side, there would be an expansion of ongoing schemes, along with a pension scheme in the private sector.
The size of the 2018-19 budget, at Tk 4.6 trillion, is a rise of 16% over last financial year. The country's GDP should reach Tk 25.47 trillions by end 2019, up from Tk 22.23 trillions at present. The Annual development Programme (ADP) is expected to see a spend of Tk 1.88 trillion, an increase of 16.59 year on year.
The government plans to maintain the annual GDP growth rate at around 7.6% and restrict inflation to around 5.5% during the next fiscal.
Ten out of 17 sectors will receive special attention. These include HR development, Power , infra, Planning, Housing, Water supply, river erosion, water resources, education, agriculture, rural development and institutions, information technology and communications religion , health and family welfare, among others.
The budget, the 10th to be announced by the Sheikh Hasina government currently running its second consecutive term in power, will be presented on June 6. It would be the 12th budget for Muhith, who had performed the exercise in 1982-83 and 1983-84 under the Ershad dictatorial regime.
The budget is expected to do away with certain cumbersome and inconvenient taxes, while making tax compliance simpler by allowing e-filing and e-payments. There would be an increase in subsidies, with about 1.1% of the GDP to be allocated for this, to ensure better social security. At present, the subsidy on foods is around Tk 4.5 billion.
There are no plans to introduce new mega projects. However, the government will increase its spend on major ongoing infra projects such as the Padma rail/road bridge, the Dohazari Cox's bazar Gundum rail project, Metro rail line 6 scheme, the Rooppur nuclear power plant, the Matarbari coal power plant, and Paira deep sea port and the like.
Minister of State for Finance M Mannan told Bangla Tribune., With general elections nearing, there will naturally be some new features in the budget, ' Allocation for social security and HR development schemes, together with the Health and Education sector work will get special attention.