Budget smallest compared to GDP size: Muhith
11 April 2016, Nirapad News: Finance Minister A M A Muhith said on Sunday Bangladesh has the smallest budget in the world compared to its Gross Domestic Product (GDP) size, and it needs a big jump (in this regard).
“Bangladesh’s budget is the smallest and the lowest in comparison with its GDP size. It needs a big jump,” he told newsmen at a dividend cheque handover ceremony by four state-owned entities at his secretariat office.
Asked whether any step would be taken for the big jump of budget size Mr Muhith said measures are already there for it.
He said Nepal’s budget is 28 per cent of its GDP, Indian one is 34 per cent of GDP, while Bangladesh’s budget size remained at 18 per cent of GDP.
“Bangladesh is one of the countries having a small budget size.”
The vision of Sheikh Hasina’s government is to raise the size of annual budget, so that a big portion of GDP can be used in public affairs, he said.
Mr Muhith also claimed of attaining success in this case.
He mentioned that the target of GDP growth for the next fiscal year (FY), 2016-17, will be set at 7.2 per cent, and it will be finalised next month. The next budget size may reach Tk 3.40 trillion.
The size of revised budget for the current FY will be Tk 2.64 trillion, he said.
The minister also said development activities in the country are dependent on revenue collection from people. The next budget will focus on earning necessary money from internal sources.
Mr Muthih further noted that the country’s main earning source is revenue sector. The revenue earning target set for the current FY is a bit high, which may not be attainable.
In the next budget a realistic revenue earning target will be set, he opined.
Regarding providing dividend by the state-owned entities he said these organizations carry out various welfare activities also.
“Expecting dividend from them is not a right choice. But I am hopeful that other public entities will be encouraged seeing these four organizations.”
In the programme, Investment Corporation of Bangladesh (ICB) handed over a cheque of Tk 598 million, Bangladesh Infrastructure Finance Fund Limited (BIFFL) Tk 3.50 billion, Sadharan Bima Corporation Tk 250 million, and UAE-Bangladesh Investment Company Limited Tk 8.4 million to the finance minister as dividend for FY 2014-15 against the government’s stake in those companies.