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"The budget for FY 2009-10 has been formulated bearing in mind the need to
maintain macroeconomic stability in the context of current global economic meltdown,
achieve the desired economic growth to fulfill our election pledge and thereby contribute
to poverty reduction," as stated by the Finance Minister, Abul Mal Abdul Muhit,
while placing the country's 38th budget in the National Parliament of Bangladesh on June
11, 2009. The budget was passed by the Awami League led Grand Alliance Government.
It was the maiden budget of the newly elected government in Bangladesh, thus the
budget size was also very big.
In the National Budget of 2009-10, target expenditure was fixed at Tk. 113,819 cr,
of which Tk. 30,500 cr (26.8% of total expenditure) was allotted to Annual
Development Program (ADP). Total expenditure increased by 20.9% over the last year's revised
budget. The total expenditure of Tk. 113,819 cr was expected to be financed through: tax
revenue of Tk. 63,955 cr (56.19% of expenditure), non-tax revenue of Tk. 15,506 cr (13.62%
of expenditure), foreign grants of Tk. 5,130 cr (4.5% of expenditure), foreign borrowings
of Tk. 8,673 cr (7.62% of expenditure), domestic borrowings from banking sources of
Tk. 16,755 cr (14.72% of expenditure), and domestic borrowings from non-banking
sources of Tk. 3,800 cr (3.34% of expenditure). With respect to total expenditure
(both developmental and non-developmental), an analysis of the budget shows that its
resources are allocated in the following manner: 13.6% to public administration, 11.9% to
education and information technology, 7.6% to local government and rural development, 6.3%
to transport and communication, 5.9% to health, 4.5% to agriculture and so on
(GOB, 2008-2009).
This paper delineates the key fiscal measures taken through the National Budget
of 2009-10 in the income tax policy and gives an appraisal of the implications thereof. |
