The budget is being revised
The previous government took up many unnecessary and politically motivated projects. Because of this, the new government has taken the initiative to revise the budget earlier.
However, the government starts thinking about amending the budget after at least six months of the fiscal year. But this time, the initiative to amend the budget has been taken a little earlier. Every year the budget is cut. Prime Minister Sheikh Hasina, who left power and fled abroad, gave a budget of 7 lakh 97 thousand crores for the current fiscal year 2024-25. There, the National Board of Revenue (NBR) has been given a revenue collection target of Tk 4 lakh 80 thousand crores. Which is 50 thousand crore rupees more than the current financial year and 70 thousand crore rupees more than the revised budget.
Economists and experts while giving the budget said this is an unrealistic and unattainable target. The journey of the interim government under the leadership of Dr. Muhammad Yunus began on August 8. Ever since assuming power, the caretaker government has been planning to take various measures to curb wastage and unnecessary government expenditure.
It is known that the Ministry of Finance and the Ministry of Planning have already started identifying the sectors to cut the budget. The interim government is going to make major cuts in the budget expenditure plan for the current financial year. The estimated cost could be as low as Rs 1 lakh crore. However, there is little scope for reducing the operating budget. Hence the largest cut will be made from the Annual Development Program (ADP). The revision of the budget may be finalized this month.
The ousted Hasina government has approved budget expenditure estimates of Rs 797,000 crore for the current fiscal year 2024-25. Out of this, Annual Development Program or ADP was Tk 2 lakh 65 thousand crores. If the size of the revised budget is reduced by Tk 1 lakh, then the revised budget will be reduced by more than 12.5 percent from the original budget. The revised budget has been reduced by 6.22 percent compared to the original budget for the fiscal year 2023-24. 2.59 percent budget revision in fiscal year 2022-23.
ADP to be reduced by TK 65 thousand crore : The Annual Development Program (ADP) may be reduced by TK65 thousand crore. This initiative is being taken as a part of reducing government expenditure. As a result, the size of ADP will be 2 lakh crore. Note that in the current financial year, the size of ADP has been estimated at two lakh 65 thousand crores.
It is known that in the budget of the current financial year, the target of taking bank loans has been set at 1 lakh 36 thousand crores. An initiative has been taken to reduce this debt below lakhs of rupees. Basically, for the implementation of ADP, the government has to take loans from banks.
It is to be noted that the government will pay Tk 1 lakh 65 thousand crore out of Tk 265 thousand crore ADP in the current financial year. Another lakh crore will come from foreign loans and grants. The number of projects under the annual development program in the financial year 2024-2025 is one thousand 321. Out of these 1133 investment projects, 21 survey projects, 87 technical assistance projects and 80 projects are under implementation by autonomous institutions/corporations.
The only state-owned investment institution Investment Corporation of Bangladesh (ICB) Chairman Professor Abu Ahmed told our time that considering the existing economic challenges, there is no option to amend the budget. Although the budget is revised every year. However, budget implementation is not possible if the economic structure is not right. There is no need to implement projects that take political considerations into account. Because there is a lack of money. There is no option to amend the budget.
DoFollow: www.greenbanglaonline24.com
Credit: www.dainikamadershomoy.com
