Bangladesh Budget (2019-20): Brief Analysis

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The expense of the proposed 49 the budget with the slogan “Time is ours, Time for Bangladesh” is
assumed to be 5 lakh 23 thousand and 190 crore taka. The target of income is determined as 3
lakh 81 thousand and 978 crore taka. That means, the upcoming fiscal year will end with a
deficiency of 1 lakh 41 thousand and 212 crore taka. Though this is the first budget for the new
finance minister, for the government it is the consecutive 11 the budget.

Let us have a look at the budget of previous times :

YEAR BUDGET(In crore)
2009-10: 950000
2018-19: 4,64,573
2019-20: 5,23,190

What is there in the budget for the people?

Subsidy for foreign remittance: there is good news for the immigrants in the budget.Now
they get 2 percent subsidy on the amount they will send to the country.

Discount in the agricultural equipment

The farmers need not pay vat on the local
agricultural equipment. There will be a reduction of tax from the harvesting equipment also.

Crop Insurance

According to the finance minister, there will be crop insurance for the
farmers.

Medicine

There will be more discount on the tariffs of the raw materials needed to
manufacture cancer medicines.

Pension for all

In the new budget, the finance minister has talked about forming a
committee for the project pension for all.

Registration of the cars

10 percent of the tariff has been applied to the registration of all the
vehicles, in taking the route permit and ownership certificate and renewal of all
certificates.

More Facilities for the Readymade garments

The government will provide a subsidy of 1 percent for the readymade garments and has allotted an amount of 2 thousands 825
crore taka for this sector.

New Entrepreneur

In the budget, an amount of 100 crore taka has been allotted for the new
entrepreneurs.

Firefighting Equipment

Since no of fire accidents have increased the government has
provide a grace on the imports of the goods related to firefighting for hospitals, hotels
and educational institution.

Daily Goods

In the budget, the price of sugar and oil will increase. More tax is imposed on
imported sugar and vat has been applied the oil.

Defense

The proposed amount of this fiscal. (Tk32,101 crore) is 9.4% more than the previous fiscal. Out
of the total amount, Tk1,480 crore will be used for the development works. Of the overall
allotment, Tk30,765 crore has been set aside for defense services while Tk1,928 crore has been
appropriated as operating cost of the Ministry of Defence and other services.Tk38 crore has
been set aside as operating costs of the Armed Forces Division which was Tk35 crore in the last
budget.

Positive sides of the budget

For the next fiscal year, an amount of 2,11,683 crore taka has
been declared for the development budget, among which 2,02,721 crore taka has been
allotted for annual development program. That means the development budget is 8.25
% of the total GDP. Other positive points are the allotment of 100 crores for the new
entrepreneurs and 2% of subsidy for the foreign remittance. Which will help the
unemployed young peoples a lot? In addition to it, the removal of vat from the goods of the
women entrepreneurs and increase of allotments for social security and educational
sectors are some good steps also.

Negative Aspects of The Budget

There has been no aid or subsidy for the farmers who work
hard to produce our food. The crop insurance will only help them in natural calamities
but not in the regular days. The governments want to make Bangladesh a digital country
but imposing an extra 10% tax on the import of smartphones and laptops. There has been a
huge opportunity of making the black money to white by investing them which is not
acceptable.

Though the prime minister is saying that they have taken the step to stop
money trafficking and to increase the amount of investment in the country
In the budget of this year, the main challenge is the implementation of the budget and facing
the deficiency of the budget. The main challenge for the finance minister is the
implementation of the budget by reducing the corruption and wastage of money. It is a
matter to watch how he faces the challenge.

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