Budget : 2016-17

WHAT IS FISCAL YEAR ?

A 12-month period over

which a company
budgets its spending. A
fiscal year does not
always begin in January
and end in December; it
may run over any period
of 12 months. The fiscal
year is referred to by the
date in which it ends.
Basically fiscal year in our
country July to June.
WHAT IS MONETARY POLICY?
The monetary policy is defined as an act undertaken by
the authorities designed to influence.
 Money supply

 Rate of interest

 The availability of money for achieving specific

objectives.
WHAT IS BUDGET ?

A budget is a quantitative
expression of a plan for a
defined period of time. It
may include planned sales
volumes and revenues,
resource quantities, costs
and expenses, assets,
liabilities and cash flows.
 BUDGET 2016-17 AT A GLANCE

 Finance Minister AMA Muhith presented his mega plans

for the 2016-17 fiscal in Parliament on Thursday.
 Earlier, the Cabinet chaired by Prime Minister
Sheikh Hasina approved the Tk
3,40,605Corror.
 Which is increased 29% then Last year.

  GDP growth target 7.2%

  Govt sets sub-6% inflation target

 Budget deficit is Tk97,853 crore

 Allocation for primary education up by over 50%

 Agriculture Ministry gets Tk13,675cr

 SOURCES OF FUNDS

Tax Revenues Non-Tax Revenues

1. Income Tax
1. Operating and service
2. Property Tax income
3. Tax on goods and 2. Income from public
services enterprises/investments
4. Taxes on international 3. Miscellaneous income
trade and transactions 4. Sale of Assets
5. Other taxes 5. Grants and aids
BUDGET SOURCE 2016-17
Foreign grants
2% Foreign loans
9%

Domestic financing
18%
Tax revenue (NBR)
60%

Non-tax revenue
9%

Tax revenue(Non-
NBR)
2%
RESOURCES ALLOCATION 2016-17
 Education : 50,017 corer

 Interest : 39,951 corer

 Transport & communication : 35,920 corer

 Energy and power : 15,014 corer

 Health : 15,883 corer

 Agriculture : 13,003 corer

 Defense : 19,609 corer

 Public Administration : 47,761 corer

 Social security :19.609 corer

 Public order and safety : 19,100 corer

 Housing : 3,065 corer

 Industrial service : 3,406 corer

 Miscellaneous Expenditure : 8,100 corer

USE OF RESOURCE TK 3,40,605CORE
Misc Expenditure, 3.5%
Culture, 0.8% Industrial Services, 1%
Education, 15.6%
Housing, 0.9%
Public Order, 6.2%

Social Security, 5.8%

Interest, 11.7%
Public Administration,
13.9%

Transport &
Communication,
11%

Defence, 6.5%

Local Government,
Agricuture,
6.9%
6.7%
Health, 5.1% Energy & Power, 4.4%
BANGLADESH GOVERNMENT EXPENDITURE FOR FISCAL
YEAR 2016-17
 Public Services: 56696 crore taka
 Local Govt and Rural Development: 20996 crore taka

 Defense Services: 18383 crore taka

 Public Order and Safety: 13630 crore

 Education and Technology: 34370 crore

 Health: 12695 cr

 Social Security and Welfare: 16725 cr

 Housing: 2918 cr

 Recreation, culture and religious affairs: 2283 crore

 Fuel and Energy: 18540 crore

 Agriculture : 19979 cr

 Industrial and Economic Services: 2755 crore

 Transport and Communication: 28700/-

 Interest : 35109 cr taka

 PROBLEMS
 Budget proposes to levy VAT on private universities,
medical and engineering colleges.
 Bangladesh sets to cut subsidy by 5.5% in coming
budget
 Long term barriers on agriculture development.

 People will not get proper health service.

 Education industry get ling term impact such as

1. Girls are demotivated if they don’t get any support from

govt.
2. Parents will not allow their children to go school for
avoiding bear extra cost Public Finance
 RECOMMENDATIONS
 Focus resources on improved auditing, processes, and tools.
 Use simple segmentation to identify larger collection
opportunities.
 Ensure regular updates to the taxpayer registry.

 Use electronic channels for simple transactions.

 Simplify the tax system to encourage formalization Public

Finance.
 Tax should be imposed VIP road user.

 Reward on tax pay system to motivate eligible people who do

not give tax
 Impose tax on domestic flight Public Finance