DHAKA: Bangladesh’s estimate of fiscal deficit for the current year is Tk97,853 crore. Of the figure, an amount of Tk5,893 crore has been met in the July-November period. In the last fiscal year, the budget surplus was Tk723 crore than in the same period a year ago.
Reportedly, the state borrowed 63.01% of total estimate in the form of selling saving instruments within five months of the current fiscal year.
According to the latest data, the sales of National Savings Deposit stood at Tk13,095 crore during the period. This is also 43.30% lower than that in the same period in FY2015-16.
During July-November period of the last fiscal year, the net borrowing through NSD certificates totaled Tk19,289.99 crore.
A Finance Division official said Bangladesh budget expenditure pattern has not come out of the “May- June syndrome” yet as most of budget expenditure happened at the last couple months of the fiscal year.
He said 22%-23% of the total budget deficit should be met within five months of the year. “But the government agencies have not enough capacity to increase development expenditure.”
About borrowing by saving instruments, he said the government loans from saving certificates have also created heavy burden on state exchequers as the interest rate of the saving instruments is above 11%.
According to the official, the state agencies have not stopped taking loans from saving instruments as it is one kind of “open tap.”
As per the data by the Controller General of Accounts, the tax revenue collection was Tk63,091 crore or 29.99% of total budget estimate during the five months, which is better than last year’s.
Last year the earning of National Board of Revenue was Tk61,979 crore. The mop up from non-tax revenue earnings stood at Tk9,220 in five months but the total estimated is Tk32,350 crore, according to the NBR data.
The total receipts (from total revenue and grant) of the government during the five months was Tk77,826 crore or 31.35% of the estimates for the current year.
The total development expenditure during the July-November is Tk16,612 crore of total estimates of Tk1,10,700 crore.
Total income during the period is Tk72,310 crore while the budget estimate is Tk2,42,752 crore.
Senior Finance Secretary Mahbub Ahmed, however, said the overall budget implementation in first five months is good compared to that in previous year.
“But the development expenditure is not up to the mark as the ministries and divisions do not have enough capacity to utilise their development funds,” he told Dhaka Tribune yesterday.
“We have formed a committee to look into the interest rate of saving instruments as the interest rate is high compared to bank rates.”
