Budget persentation 2011-12 sec B BBA DU University of Dhaka

1. WELCOME
A STUDY ON
NATIONAL
BUDGET OF
BANGLADESH
2011-12

2. NAME ID
1. ZENIA AKTER 16-102
2. MD. SALAHUDDIN 16-103
3. MOHAMMED MOIN UDDIN REZA 16-104
4. SMN JAMIUL HIKMAH 16-105
5. TAHSIN NAZIM 16-106
6. NUSRAT FARZANA 16-107
7. MD.SHORIFUL ISLAM 16-108
8. MD. MONIRUL ISLAM 16-109
9. SIAM AHMED 16-110

3. BUDGET ORIENTATION
NATIONAL BUDGET OF BANGLADESH 2011-12
ANALYTICAL STUDY

4. The budget of a government is
an itemized summary of
expected income and
expenditure of a country over a
specific period.

5. In a balanced budget...
Revenue = Expenditure
In a surplus budget...
Revenue > Expenditure
In a budget deficit...
Revenue < Expenditure

6. ABUL MAAL ABDUL
MUHITH
Qualifications & Achievements:
Mr. Muhith was very brilliant throughout
his student life.
1) 1st place in Intermediate examination
in 1951 from Sylhet MC College.
2) 1st class 1st in B.A (Hons.) in English
literature in 1954 from Dhaka University.
3) Passed his M.A with credit from Dhaka
University in 1955.
4) Studied in Oxford University and
received MPA Degree from Harvard
University.
5) He is the pioneer of Bangladesh
Environment Movement and was also
the founder President of BAPA.

7.  Budget: 41th
 Budget Announcement: 9th June, 2011
 Budget Announcer: Abul Maal Abdul Muhith
 Budget Activated: From 1st July
 Total Budget: 1,63,589 cr. tk.
 Overall Earnings(including revenue & grants):
1,23,323 cr. tk.
( Revenue Earnings: 1,18,385 cr. tk.
Foreign Grants: 4,938 cr. tk. )

8.  Annual Development Program: 46,000 cr. tk.
 Total Expenditure: 1,63,589 cr.tk.
 Overall Deficit(including grants): 40,266 cr. tk.
 Overall Deficit(excluding grants): 45,204 cr. tk.
Financing: 40,266 cr. tk.
Foreign Borrowing: 13058 cr. tk.
 Domestic Borrowing: 27,208 cr. tk.
 Total GDP: 8,99,670 cr. tk.
 Expected GDP Growth : 7%
 Expected Inflation : 7.5%

9. Tax revenue
(NBR), 56.20%
Taxrevenue
(non-
NBR), 2.40%
Non Tax
revenue
, 13.80%
Foreign
Grants, 3%
Foreign
Loan,8%
Domestic
Financing, 16.6
BUDGET :2011-12
( TAKA 1,63,589 crores)
RESOURCES COMING
FROM
Tax Revenue (NBR)=56.20
% Which is 918.70 crores.
(consists of)
VAT 37.3%
IMPORT DUTY 13.7%
INCOME TAX 30.0%
SUPPLY DUTY 17.7%

10. Government Expenditure basically belongs to two sectors
1. Developement Expenditure
2. Non- developement expenditure
Government Expenditure as per as Budget 2011 would be
: 1,63,589 crores
1. Developement Exp : 47,276 crores ( 28.9%)
2.Non- developement exp : 1,16,313 crores ( 71.1%)
TOTAL EXPENDITURE : 1,63,589 crores ( 100.00%)

11. Development expenditure
Sectors:
1. Social security & welfare =5.3%
2. Public Administration = 5.0%
3. Health = 7.5%
4. Agriculture = 7.3%
5. Education = 12.4%
6. Local govt. & rural dev. = 21.8%
7. Transport & comm. = 16.4%
8. Power & energy = 17.5%
9. Others = 6.8%
47276 CRORES
Non- Development Expenditure
Sectors:
1. Subsidies =8.0%
2. Pension = 4.3%
3. Acquisition of Assets = 3.5%
4. Goods & Services =10.1%
5. Grants in Aid =17.4%
6. Interest = 15.5%
7. Pay & allowances = 18.6%
8. Unexpected allocation = 1.6%
9. Miscellaneous non dev.
investment = 10.6%
10. Others = 10.4%
116313 CRORE

12. Revenue :
(sources)
1. Tax Revenue
(NBR)
2. Tax Revenue
(non-NBR)
3. Non Tax Revenue
RESOURCES
COMING
FROM
Budget deficit :
( to be financed by)
1. Foreign grant
2. Foreign Loan
3. Domestic
Financing
In Budget 2011-12,
Revenue : 1,18,385 crores + Budget Deficit : 45,204 crores = Expenditure : 1,63,589
crores

13. THIS YEAR SUPPLIMENTARY BUDGET IS
7779 CRORE 2 LAKH 85 THOUSAND
TAKA.

14. MINISTRY/ DEPARTMENT TAKA (IN CRORE)
1. FOOD DEPARTMENT 1899.2674
2. MINISTRY OF AGRICULTURE 1697.1692
3. ELECTRICITY DEPARTMENT 986.9815

15. SECTOR AMOUNT (IN CRORE) PERCENTAGE
1. PUBLIC ADMINISTRATION 23,980 14.6%
2. EDUCATION & TECHNOLOGY 20,316 12.4%
3. INTEREST REPAYMENT 17,997 11.0%
4. AGRICULTURE 12,516 7.7%
5. LOCAL GOVT. & RURAL DEV. 12,271 7.5%
6. DEFENCE 11,951 7.3%
7. TRANSPORT &
COMMUNICATION
11,280 6.9%
8. SOCIAL SECURITY &
WELFARE
11,053 6.8%
9. HEALTH 8,869 5.4%
10. PUBLIC ORDER &
SECURITY
8454 5.2%

16. INCOME LEVEL
(IN TAKA)
PERCENTAG
E
01 - 180000 0%
180001 - 480000 10%
480001 - 880000 15%
880001 - 1180000 20%
1180001 - ABOVE 25%
10% surcharge on wealth > Tk 2 crore

17. Allotment of Budget

18.  Total Allotment - 20316 cr. Tk
 Development and undeveloped expense - 19806
cr. Tk
 12.4% (of total budget)
12.4
1st Qtr
2nd Qtr

19.  Total Allotment – 7406 cr. Tk
 Subsidy – 4500 cr. Tk
Total Allotment – 1 cr. Tk

20. Internal Interest – 16519 cr. Tk
Foreign Interest – 1478 cr. Tk
Total Interest – 17997 cr. Tk
11% (of the budget)
2% (of the GDP)
11%
Interest
1st Qtr 2nd Qtr

21. Social Security
Total Allotment – 22556 cr. Tk
13.8% (of total budget)
2.5% (of total GDP)
13.8
1st Qtr
2nd Qtr

22. Bag of Budget

23.  PRIVILEDGE TO TRANSFER BLACK MONEY TO
WHITE MONEY BY BUYING BONDS
 TAX EXEMPTION IN THE CAPITAL MARKET
STANDS STILL
 MPs MINISTERS & JUSTICES HAVE TO PAY TAX

24. AK Azad, President of
Federation of
Bangladesh Chambers
of Commerce and
Industry,
Liquidity crisis for ADP
Raising tax on foreign
transport
Argument & Criticism

25. Asif Ibrahim, President
of Dhaka Chamber of
Commerce and
Industry------
Ambitious on tax
collection

26. Murshed Murad
Ibrahim, President of
Chittagong Chamber of
Commerce and
Industry---
Unfavorable tax-net for
business activities

27. Shafiul Islam
Mohiuddin, President of
Bangladesh Garment
Manufacturers
Exporters Association---
---
Unrealistic tax proposal on
exportable goods

28. Jahangir Alam
President of
Bangladesh Textile Mills
Association------
Unfriendly budget
proposal for textile
industry

31. Tax revenue is basically of two types
1. Direct tax
2. Indirect tax
paid directly to the government by the
persons on whom it is imposed.
Example: income tax
collected by an intermediary (a retail
store) from the person who bears the
ultimate economic burden of the tax
(consumer).

32. PARTIES
PURCHA
SING
PRICE
VALUE
ADDED
/PROFIT
SELLING
PRICE
VAT 15%
NET VAT
PAYABLE
1. IMPORTE
R
2000 300 300
2. IMPORTER 2000 1000 3000 450 150
3.
PRODUCER
3000 500 3500 525 75
4. WHOLE
SELLER
3500 1000 4500 675 150
5. RETAILER 4500 1500 6000 900 225
= 900

33. “By December 2011, taxpayers will be
able to have TIN registration and TIN
certificate through online” – Finance
Minister

35. CAPITAL GAIN VS DIVIDEND GAIN ?

36. ? ADP ?
? GROWTH RATE ?
? INFLATION ?
? GDP ?
But THE REALITY IS
THERE IS A FEW PEOPLE WHO UNDERSTAND
THESE BUT
THERE IS NONE WHO CAN’T
COMPARE THE PRICE OF 1 KG. RICE AT 2009
AND 2010

37. Let’s Have a Look:

38. ------Thank You ------