Home ›› 07 May 2023 ›› Front
Along with controlling inflation and creating employment, the government will give the utmost priority to alleviate poverty in the next budget for the fiscal year 2023-24.
According to the latest data available from the Bangladesh Bureau of Statistics (BBS), Bangladesh’s poverty rate declined to 18.7 per cent in 2022 while the extreme poverty rate stood at 5.6 per cent.
The next budget for FY24 is scheduled to be unveiled on June 1 in Parliament. The government is likely to announce a budget of Tk 759,955 crore for the next fiscal year.
Besides, the election year budget will focus on developing the marginalised groups and rural areas, according to a Planning Division report regarding the next budget sent to the finance ministry recently.
As per the report, the upcoming budget will also focus on structural transformation of industrialisation to boost exports, fundamental transformation of agriculture to ensure nutrition and food security, and skill-based social development.
It said the main goal of the next budget will be to reduce poverty by increasing income through controlling inflation and creating employment. In addition, social security allowances will be increased in the next budget.
According to sources in the finance ministry, the government will take into consideration the impacts of the Covid-19 pandemic and the Ukraine-Russia war while determining the macroeconomic framework and sector-based strategy in the next budget.
Accelerated prosperity and inclusive growth will be the key focus in poverty alleviation, said sources, adding that inclusive development will be ensured so that no one is left behind.
They also said target-based steps will be taken in the next budget in line with the 8th Five-Year Plan for the people and the regions lagging behind in the economic and social development index.
According to the 20-year perspective plan to achieve the goals of Vision 2041, the upcoming budget will lay emphasis on many issues, including ending extreme poverty by 2031 and transitioning to upper-middle income country status.
The proposed budget will also put stress on the structural transformation of industrialisation in line with export-oriented manufacturing.
Furthermore, the budget will prioritise ensuring nutrition and food security by increasing productivity through fundamental transformations in the agriculture sector.
Steps will be taken to transform the rural agrarian economy into a primary industrial and digital economy by improving the services sector.
The upcoming budget will also focus on developing an efficient energy system and infrastructure to help achieve rapid, efficient and sustainable growth. Besides, various initiatives will be taken to build a safe Bangladesh by dealing with climate change and other environmental problems.
However, work of the second phase of ongoing projects under the Bangladesh Delta Plan-2100 will begin from July.
The size of annual development programme (ADP) is estimated to be Tk 263,000 crore in the proposed budget for the next fiscal year. Of this, Tk 84,000 crore will come from various development partners, and the remaining Tk 179,000 crore will be provided by the government. This time the size of ADP has increased by about Tk 17,000 crore.
The size of ADP in the current fiscal year 2022-23 (FY23) is Tk 2,46,066 crore. However, the National Economic Council (NEC) in March approved a TK 227,566 crore Revised Annual Development Programme (RADP) for FY23. Of this, Tk 153,066 crore will be provided locally and foreign aid to the projects is Tk 74,500 crore come from foreign sources.
On condition of anonymity, a senior official of the Finance Ministry said it will not be possible to increase the ADP allocation in FY24 by much due to the increase in interest and subsidy.
Compared to the current budget, the allocation for ADP is being increased by only 6.80 per cent.
According to sources, the new ADP proposal will be placed for approval at the upcoming NEC meeting on May 11.
They said as usual, the Local Government Division is expected to get the highest allocation, followed by the Roads and Highways Department.
Apart from this, the Ministry of Power, Energy and Mineral Resources, Ministry of Railways, Ministry of Science and Technology, Ministry of Water Resources, and Ministry of Health and Family Welfare are expected to get a big amount of allocation. Also, mega projects are being prioritised in the proposed ADP this year too. There is a large allocation for Rooppur Nuclear Power Plant, Metro Rail and Padma Bridge projects.
