Operating expenditure of government for the next fiscal year is likely to increase by 11.09 percent compared to outgoing revised fiscal budget, riding on the back of salaries and allowances for newly-recruited doctors and nurses for hospitals treating Covid-19 patients along with subsidies and incentives.
The proposed operating expense also includes a huge amount of funds allocated for salaries and allowance for state-owned mills and the acquisition of lands and assets.
Budget operating expenditure involves payment of salaries, wages, pensions, subsidies, and payment of interest.
An official of finance division the government has long-term plan to recruit 8,000 doctors and 6000 nurses for hospitals in and outside Dhaka.
The government will provide more subsidy for import of foods including rice and energy sector resulting in the total outlay of subsidies and incentives for the next fiscal year’s budget has increased, the official also said.
The proposed operating expenditure of government is likely to reach Tk 3,51,833 crore which is 11.09 percent or Tk 43,168 crore raised from this fiscal year revised outlay Tk3,08,665 crore.
An operating expenditure outlay is 11.44 percent of next fiscal year of total GDP outlay Tk 31,71,500 crore.
While talking to The Business Post, economist and financial adviser to past caretaker government Dr AB Mirza Azizul Islam said the purchase of gratuitous cars and foreign travels for officials should be stopped during the Covid-19 pandemic.
The government should not take any austerity measures because people need money in this pandemic situation, he said.
Mirza said, "I have always been vocal critic of nonprofit state mills and corporations but that is not time to lay off, he continued adding "I have also recommended that downsizing extra human resources of the government public administration but it is not the appropriate time.”
The government can reduce the budget operating expenditure if they take a political decision on the said issues, he pointed out.
Sector-wise allocations are also likely to surge compared to outgoing year’s allocations. A major hike by 10.84 % in allocation for subsidies, incentives, supply, and grant will be reflected in the next fiscal compared to the revised outlay of Tk 1,20,890 crore. The next fiscal year’s outlay is Tk 134,000 crore.
The public administration ministry will receive an additional Tk 4,891 crore in the next fiscal as new recruits — doctors and nurses — will draw salaries and allowances in the next fiscal.
Next fiscal salaries and allowance outlay will be Tk 65,000 crore against Tk 60,109 crore of outgoing revised fiscal outlay.
The government also puts Tk 54,308 crore as operating capital expenditure for the next fiscal year but this fiscal it is only Tk 17,348 crore. Sources in the finance division said the government is going to allocate that amount to pay salaries and allowances of state-owned jute and textile mills and the acquisition of land and assets for creating 100 economic zones.
The country’s massive interest payment liability will reach Tk 63,525 for next fiscal which is 10.17 percent higher than the revised outlay of Tk 57,663 crore. The next fiscal outlay is 17.5 % as large as the total budgeted operating expenditure of the government for 2020-21.
Supply and services outlay will be Tk 35,000 crore which is Tk 2,791 crore higher than the revised one.
