The 2020-21 fiscal budget outlay is likely to exceed Tk 5. 5 lakh crore mark, up by over 6.46 percent from that of the current fiscal.
“The budget totaling Tk 5,56,978 crore is due to be placed before the parliament on June 11; focusing on the recovery of the economy as it is hit hard by the coronavirus,” a official working with budget wing told Business Mirror preferring anonymity.
The government is heavily depending on contribution of agriculture as it continue projecting the growth rate at 8.2 percent in next fiscal despite coronavirus hit negative impact on economy.
The finance ministry is preparing the budget assuming that worldwide deadly coronavirus pandemic will not impact the country’s GDP growth, inflation, and budget deficit in next fiscal year.
Focus on from the funding mega projects will shift to how negative impact can be reduced in the country said the official.
Bangladesh agriculture sector is contributing 19.6 percent to the national GDP and providing employment for 63 percent of the population.
Economist claimed that it is totally an absurd assumption that there is no impact on country’s growth adding that it is also loan-based budget.
A large chunk of incentive package, declared by the government, will be earmarked to fight against deteriorating economy due to coronavirus pandemic but most packages are in loan from banks. Finance division put a block allocation of Tk10,850 crore for facing coronavirus pandemic in a bad situation.
The government’s next fiscal deficit is likely to settle at Tk1.79 lakh crore or 20.22% of its revised target of Tk1,48,065 crore.
It had seen its fiscal position deteriorate even before the Covid-19 crisis and government started the budgeting process from the month of March. But the crisis only mounted the pressure on funds as government initiated relief work and cash support.
Projecting budget deficit the government has set target financing Tk 88,000 crore \ from bank loan, Tk 1,13,000 crore from internal resources and Tk77,000 crore from foreign sources.
