1. A REVIEW REPORT ON
BUDGET OF BANGLADESH
Submittedby
Id no.B3160B024
Batch.BBA3(A)
Submittedto
Ashna Islam
Assistant Professor
Date of Submission :24th
April,2016
2. ARMY INSTIUTE OF BUSINESS ADMINISTRATION
Table of contents
Contents page no.
ACKNOWLEDGEMENT-----------------------------------------------------------------------------------i
Abstract--------------------------------------------------------------------------------------------------------ii
Chapter 1: Introduction------------------------------------------------------------------------------------1
1.1 National Budget-----------------------------------------------------------------------------------------1
1.2 Aim & Objective----------------------------------------------------------------------------------------1
Chapter 2:Discussion-----------------------------------------------------------------------------------(2-7)
2.1 Chronology (since 1972) (Bangladesh & it’s Budget in brief) ----------------------------------2
2.2 Previous Year Budget in Brief (with GDP)----------------------------------------------------------4
2.3 Priority of Focus on different sector(Budget 2007-08 as example)------------------------------4
2.4 Distribution of budget in brief(2015-16)-------------------------------------------------------------4
Graph-----------------------------------------------------------------------------------------------------------5
2.5 Contains Of Five years plan(2016-20)----------------------------------------------------------------6
2.6 Supplementary Budget 2014-15------------------------------------------------------------------------7
2.7 Internal Economic Condition--------------------------------------------------------------------------7
Conclusion----------------------------------------------------------------------------------------------------8
3. ACKNOWLEDGEMENT
The most pleasant part of submitting the report is to get opportunity. I would like to thank those
who have contributed to it a lot. Unfortunately, the list of expression of thanks-no matter how
extensive is always incomplete & inadequate. These acknowledgements are no exception. First, I
would thank almighty Allah for bestowing us the patience & courage to finish this huge task
within deadline.
In addition ,I sincerely acknowledge my debt to Ms. Ashna Islam ,honorable faculty, AIBA for
his valuable counseling towards the improvement of the report. Without his encouragement, this
would have never been possible.
4. Abstract
Budget is a key instrument for any country. Bangladesh is a democratic country. It makes a fixed
Budget for a certain period which is known as “Fiscal Year” . Fiscal year for Bangladesh, starts
from July & continues until the month June of next calendar year.
After independence , it has started to declare budget. It had declared it’s first budget in 1972.Taj
Uddin Ahmed placed that budget on behalf of Bangladesh Govt.
The most recent Budget was declared by honorable finance minister, Mr. A.M.A Muhith, which
was 44th budget in the history of Bangladesh. The Amount was 2,95,100 crore & GDP was
6.51% which was targeted 7.00%. where , Remmittence Rate was 7.1% & Reserve & Exchange
Rate 23.7 was billion.
Beside the Budget, a supplementary budget is also declared. Where it reflects the budget of
previous year.
And here is budget of previous year that have shown with growth rate to differentiate GDP on
the basis of a certain period (2010-2016).
Then the priority of focus has also shown to show the special attention of govt. in a specific
period. And then it is compared with the priority of focus of the budget of the previous year.
Our govt. has made a plan for five years at the time of declaring the budget. This year the same
thing is happened.
Then the supplementary budget of previous year is also discussed here.
Then we have also analyzed the target & achievement of previous year.
At last , the latest budget(2015-16) has shown in the conclusion.
5. Chapter 1 :INTRODUCTION
An Annual Budget is an budget that is prepared for a 12 month period. An Annual Budget
outlines both the income & expenditures that are expected to be received & paid over the coming
year. Annual Budgets are used by individuals, corporations, governments, & various other types
of organization.
Annual Budgets can apply to either a fiscal or calendar year. These budgets help their creators to
make plan for the upcoming year and make the necessary adjustments in cash flow to cover
expenses. Annual budgets help both individuals & organizations to accurately project their future
cash flows& effectively manage their money.
Finance minister AMA Muhith announces the country’s 44th budget, for the financial year 2015-
16 in parliament on Thursday.
Here is the chronology of the national budgets placed in parliament since 1972. The following
list shows who proposed the annual budgets and what the amounts of the annual outlay were
over the years:
1.1 National Budget
The budget is the key instrument for the execution of government economic policies.Because it
may retard or promote economic growth in certain areas of the economy.Government budgets
are the focus of competing political interests. The budget has been announced with eight major
objectives.Maintaining price of essential in a tolerable level,ensuring food security,creating
employment & extending social safety net.A government budget is a legal document that is often
passed by a legislature,& approved by the chief executive.For example,only certain types of
revenue may be imposed & collected.Property tax is frequently the basis for local
revenues.While sales tax may be the basis for state revenue,and income tax and corporate tax are
the basis for national revenues.
On 9th june,2008,the finance adviser to the care taker government,presented the national budget
for the financial year,2008-09 in a live broadcast over the national radio & TV…………..(1)
While highlighting the budget performance last year,he also laid before the nation the socio-
economic targets for the coming year,and how the government planned to achieve those.
6. 1.2 Aim & Objective
The main Aim is to know about the budget of Bangladesh , it’s source & it’s sector. By making
this report we can fulfill our target.It is necessary to mention that it is a comparative review work
on the “Budget of Bangladesh”
Chapter 2 :DISCUSSION
2.1 Chronology (since 1972) (Bangladesh & it’s Budget in brief)
Fiscal Year Who placed budget Outlay
1972-73 Tajuddin Ahmed Tk 786 crore
1973-74 Tajuddin Ahmed Tk 995 crore
1974-75 Tajuddin Ahmed Tk 1,084.37 crore
1975-76 Dr Azizur Rahman Tk 1,549.19 crore
1976-77 Maj Gen Ziaur Rahman Tk 1,989.87 crore
1977-78 Lt. Gen. Ziaur Rahman Tk 2,184 crore
1978-79 President Ziaur Rahman Tk 2,499 crore
1979-80 Dr MN Huda Tk 3,317 crore
1980-81 M Saifur Rahman Tk 4,108 crore
1981-82 M Saifur Rahman Tk 4,677 crore
1982-83 AMA Muhith Tk 4,738 crore
1983-84 AMA Muhith Tk 5,896 crore
1984-85 M Sayeduzzaman Tk 6,699 crore
1985-86 M Sayeduzzaman Tk 7,138 crore
1986-87 M Sayeduzzaman Tk 8,504 crore
1987-88 M Sayeduzzaman Tk 8527 crore
1988-89 Maj Gen (rtd) Munim Tk 10,565 crore
1989-90 Dr Wahidul Haq Tk 12,703 crore
7. 1990-91 Maj Gen (rtd) Munim Tk 12,960 crore
1991-92 M Saifur Rahman Tk 15,584 crore
1992-93 M Saifur Rahman Tk 17,607 crore
1993-94 M Saifur Rahman Tk 19,050 crore
1994-95 M Saifur Rahman Tk 20,948 crore
1995-96 M Saifur Rahman Tk 23,170 crore
1996-97 Shah AMS Kibria* Tk 24,603 crore
1997-98 Shah AMS Kibria Tk 27,786 crore
1998-99 Shah AMS Kibria Tk 29,537 crore
1999-00 Shah AMS Kibria Tk 34,252 crore
2000-01 Shah AMS Kibria Tk 38,524 crore
2001-02 Shah AMS Kibria Tk 42,306 crore
2002-03 M Saifur Rahman Tk 44,854 crore
2003-04 M Saifur Rahman Tk 51,980 crore
2004-05 M Saifur Rahman Tk 57,248 crore
2005-06 M Saifur Rahman Tk 61,058 crore
2006-07 M Saifur Rahman Tk 69,740 crore
2007-08 AB Mirza Azizul Islam Tk 87,137 crore
2008-09 AB Mirza Azizul Islam Tk 99,962 crore
2009-10 AMA Muhith Tk 113,815 crore
2010-11 AMA Muhith Tk 132,170 crore
2011-12 AMA Muhith Tk 165,000 crore
2012-13 AMA Muhith Tk 191,738 crore
2013-14 AMA Muhith Tk 222,491 crore
2014-15 AMA Muhith Tk 250,506 crore
2015-16 AMA Muhith Tk 295,100 crore
8. 2.2 Previous Year Budget in Brief (with GDP)
Year Total Budget GDP
2010-11 1,32,170 cr 6.71
2011-12 1,65,000 cr 6.23
2012-13 1,91,738 cr. 6.03
2013-14 2,22,490 cr. 6.12
2014-15 2,50,506 cr. 7.00
2015-16 2,95,000 cr. 6.80
2.3 Priority of Focus on different sector(Budget 2007-08 as example) …..(1)
Defence 6.4%
Transport & Communication 6.1%
Health 5.9%
Public Order & Security 5.6%
2.4 Distribution of budget in brief(2015-16) ……. (chart 2)
Recreation,Culture,Religious Affairs -------- 0.8%
Industrial & Economical service-------------- 0.9%
Miscellaneous Expenditure-------------------- 3.9%
Edu & Tech------------------------------------- 11.6%
Interest------------------------------------------- 11.9%
Transport & Communication------------------- 9.7%
LGRD---------------------------------------------- 7.1%
Energy & Power---------------------------------- 6.3%
Health---------------------------------------------- 4.3%
Agriculture----------------------------------------- 6.8%
Defence--------------------------------------------- 6.2%
Public Admin.------------------------------------ 19.2%
Social Security & Welfare----------------------- 5.7%
9. Public Order & Safety---------------------------- 4.6%
Housing--------------------------------------------- 1.0%
10. Distribution of Budget 2015-16
Recreation,Culture,Religious aff
0.8%
Industrial & Economical
0.9%
Miscellenious Expenditure
3.9%
Education & Technology
11.6%
Interest
11.9%
Transport & communication
9.7%
LGRD
7.1%
Energy & Pwr
6.3%
Health
4.3%
Agriculture
6.8%
Defence
6.2%
Public Admin
19.2%
Social Security & welfare
5.7%
Public Order & Safety
4.6%
Housing
1.0%
11. So, as we can see, our fiscal year is started at the middle of the year, in the month of july. At the
beginning of every fiscal year, our government declared the national budget for next fiscal year.
Here they show their annual financial plan, their source of income, their fund , loan , balance,
reserve etc.The total amount of the budget for the FY 2015-16 is 2,95,100 crore. And proposal of
5 years plan is a part of it…..(4)
2.5Contains Of Five years plan(2016-20)
Technologically improved manpower
Removing infrastructural lackings in Electricity, fuel & communication sector
Taking strategical steps to develop small & cottage industry including agricultural
industry
Making definite strategy & policy to export ICT-Education-Health services
Bringing dynamic progress in PPP Project
Bringing dynamic progress & versatility in product
14. After finishing the MDG period, Bangladesh has analyzed it’s achievement. And we can see the
proper distribution of budget in various sector. And we can notice that, it has given importance in
specific sector according to the situation.
For example , Once ,it has kept maximum percentage for “Defence” sector. But if we analyze
the budget of previous year, “Public Administration” got much attention & preference.
It has also kept a five years plan to achieve their target easily.
At the time of, declaring it’s budget every year, it tries to show the comparison between it’s
target & achievement.As well as, it tries to show a review of previous year budget.
One of the major issue is GDP. Every year they try to show the GDP growth, as well as the rate
of achievement of previous GDP & at last, it shows the new GDP target for the new fiscal year.
Finally, the development of a country as well as the fate of a country depends on the budget.