• Friday, Oct 07, 2022
  • Last Update : 10:24 am

Spending on public servants' remuneration to witness uptick from FY22

  • Published at 04:05 pm April 6th, 2021
Budget FY 22
Photo: Bigstock

The government is going to allocate 12.2% of the total budget in the upcoming 2021-22 fiscal year

Expenditure for salaries and allowances of the public sector will see an uptrend from the next fiscal year, with four years having passed since the last rise in budgetary allocation.

The government is going to allocate 12.2% of the total budget in the upcoming 2021-22 fiscal year for salaries and allowances to public servants and other related pockets.

For this sector, allocation will be 12.5% of the total budget in the 2022-23 fiscal year, according to an official document.

The estimated amount of money for the next two fiscal years would be Tk74,530 crore and Tk86,980 crore, respectively.

After the 2016-17 fiscal year, the amount of spending in salaries and allowances for the public servants — as a proportion of the budget — witnessed a downward slide.

In FY17, the allocation was 18.2%, while it nosedived to 14.8% in 2017-18 fiscal year.

The allocated amount for the 2016-17 fiscal year was Tk49,043 crore, whereas the allocation reduced to Tk47,850 crore in the following fiscal year.

As per the document, the allocation in the 2013-14 fiscal was 14% and 14.8% in 2014-15.

The allocation saw a sharp rise in 2015-16 and 2016-17 fiscal years with 16.7% and 18.2% of the total budget allocation, respectively. The amounts during these two fiscals for the salaries and other allowances were Tk40,050 crore and Tk49,043 crore.

The document said that the rise in the allocation occurred due to implementation of the new pay scale for the public servants that continued for the two consecutive fiscal years.

Expenditure in the sector reduced to 14.8%of the budget in 2017-18 fiscal year and 13.6% in the 2018-19 fiscal year.

The trend continued in 2019-20 fiscal with 12.2% and in 2020-21 fiscal with 11.6%; allocation for the fiscal years were Tk60,750 crore and Tk65,000 crore, respectively.

The official document expected that the trend of expenditure for the salaries and allowances in the coming two fiscals would be in the normal trend with 12.2% and 12.5% allocation of the total budget.

The country is likely to get a Tk593,314 crore budget for 2021-22 fiscal year — Tk25,314 crore higher than the running one — aiming to face the Covid-19 pandemic challenge for recovering the economy.

Amid the coronavirus crisis, the government had taken up a comprehensive plan with four main strategies: discouraging luxury expenditure; prioritising government spending that creates jobs; creating loan facilities through commercial banks at subsidized interest rate for the affected industries and businesses; and expanding the coverage of the government’s social safety net programmes.

Meanwhile, the government has estimated to bring down its expenditure in current account while increasing the capital expenditure in the next 2021-22 and 2022-23 fiscal years.

According to an official document, the current expenditure for 2021-22 and 2022-23 fiscal years has been estimated at 54.4% and 54.5% of the total budget, respectively.

Salaries and allowances of public servants, purchase of product and service, compensation and relocation expenses, and payment of interest against foreign and domestic loans are under the segment of current expenditure.

Besides, food accounts and expense for structural coordination are also under this expenditure.

On the other hand, government funded annual development programme (ADP) and non-ADP capital expenditure are the main two items under the capital expenditure.

Loan and advance, development programmes from revenue budget, projects outside the ADP and non-ADP food for work programme, and handover expenses are also under this expenditure.

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