Without foreign grants, the budget deficit will widen to a record Tk190,000 crore
Finance Minister AHM Mustafa Kamal has tabled a national budget of Tk568,000 crore for the 2020-21 financial year, biggest in the country's history, in a bid to drive the government's efforts to salvage the economy battered by the Covid-19 epidemic and safeguard public health.
The proposed plan is 13% higher over the revised outlay for the outgoing fiscal year and is 8.56% higher than the main budget for FY2020.
Without foreign grants, the budget deficit will widen to a record Tk190,000 crore or 6% of the gross domestic product (GDP).
The finance minister unveiled his second national budget in a brief parliamentary session on Thursday afternoon in the presence of Prime Minister Sheikh Hasina and a limited number of lawmakers.
President Md Abdul Hamid had earlier authenticated the budget bill after it was approved by the cabinet.
The finance minister read out some parts of the budget while the rest of the parts were shown in a multimedia presentation in between his speech.
The budget has been placed when the country is reeling under the adverse social and economic impact of the Covid-19 pandemic.
The revenue collection target for the coming fiscal year is Tk378,000 crore. Of the amount, the NBR has been tasked to realize a revenue collection target of Tk330,000 crore, the Non-NBR revenue collection target is Tk15,000 crore, while the non-tax revenue collection target is Tk33,000 crore.
Besides, Tk4,013 crore will come from foreign grants.
The 2020-21 budget is the second presented by the Awami League government in their third term. The budget for the outgoing 2019-20 fiscal initially stood at Tk523,000 crore but was later scaled down to Tk501,000 crore.
The government had revised down its economic growth estimate to 5.2% for FY20 from its original estimate of 8.2%.
However, Kamal told parliament on Thursday that they aim to achieve 8.2% economic growth in the new fiscal year starting from July 1.
The latest budget seems to continue the trend of year-on-year growth in government spending.
Kamal's FY2019-20 budget had marked an 18% increase over the previous year’s revised budget, while the 2018-19 budget presented by then finance minister Abul Maal Abdul Muhith was 25% bigger than the revised budget of the year before.