Minute by minute: National budget FY2019-20
4:42pm- Government considers set of proposals to widen the remit of social safety net programs for 2019-20 fiscal year.
A total of Tk74,367 crore is proposed in order to do so, which is 14.21% of total proposed budget and 2.58% of gross domestic product (GDP) for FY2019-20.
4:40pm- Government decides to build separate lanes, directional signals, pool of skilled drivers and create mass awareness programs to enhance road safety.
4:38pm- Budget proposes a provision that will allow investors to whiten black money through investment in economic zones (EZs) and high-tech parks, with no question on the sources of the funds considering the investors pay a 10% tax on the invested amount
4:38pm- The agriculture sector gets smaller size of the budget.
4:35pm- The government forecasts 5.5% inflation during the 2019-20 fiscal year.
4:30pm- Tk80,200 crore proposed for children, which is 15.33% of the national budget.
4:20pm- More schools to be added to MPO list. MPO listed teachers and employees to receive 20% of basic salary as Pohela Boishakh bonus.
4:15pm- The government has proposed to keep the income tax rate for company taxpayers unchanged for the 2019-20 fiscal year.
4:11pm- The government proposes to allocate Tk28,051 crore for the power and energy sector, which is 12.57% (Tk3,131 crore) higher than the sum proposed in the outgoing fiscal.
3:55pm-Tax-free income limit for individual taxpayers remain unchanged at Tk2.50lakh.
The tax free exemption limit is also set to Tk2.5lakh for individual taxpayers.
3:55pm-The budget aims to achieve a growth rate of 8.2%, banking heavily on the expected growth of the outgoing fiscal year (FY2018-19).
3:48pm-No price spiral for essential commodities.
3:47pm- Government targets 10 million taxpayers to boost revenue collection.
FY20
#revenue target set at Tk3,77,810cr
#NationalBudgetFY20 #Bangladeshhttps://t.co/KPOvkbVJaN
— DhakaTribune (@DhakaTribune)
June 13, 2019
3:46pm- NBR receives gigantic target of Tk325,660 crore.
3:44pm-The government proposes to set the total revenue target for the upcoming fiscal year 2019-20 at 377,810 crore. This figure includes both tax and non-tax revenue.
2:50pm- The Cabinet approves the proposed national budget for FY2019-20.
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Law enforcement agencies to get a giant chunk
Of the total budget allocation, Tk2,166 has been proposed for the development alone, which is Tk908 crore more than the last fiscal
Law enforcement agencies are getting a mammoth allotment in the proposed budget for the fiscal year 2018-19, as the public order and safety sector alone will get 5.3% (Tk27,636 crore) of the Tk5,231.90 billion budget, rising 3.78% from the previous fiscal.
According to the budget proposal placed by the AHM Mustafa Kamal in parliament on Thursday, the Public Security Division under the Home Ministry, which includes all law enforcement agencies, will receive a Tk21,922 crore allotment, which was Tk21,406 crore in the last fiscal.
Of the total budget allocation, Tk2,166 has been proposed for the development alone, which is Tk908 crore more than the last fiscal.
On the other hand, allocation for the Security Services Division has been proposed at Tk3,694 crore, which was Tk3,334 crore in the previous fiscal. Of this, Tk1,585 crore will be allocated for the development of the sector, up from Tk1,251 crore in the previous fiscal.
These two divisions -- the Public Security and the Security Services divisions– were made in 2017 after splitting the Ministry of Home Affairs.
Kamal, a businessman-turned politician, unveiled his first national budget of the fiscal year 2019-20 at the parliament on Thursday.
Tk195 crore has been proposed for the Supreme Court for its operation, with an increase of Tk15 crore over the previous fiscal. The highest court of the country however has not been allocated any development budget this year.
This Public Order and Safety sector includes the Supreme Court, Law and Justice Division, Public Security Division, Legislative and Parliamentary Affairs Division, Anti-Corruption Commission, and Security Division.
Tk32,520 crore allocated for defenceministy
On the other hand, the Ministry of Defence has been allocated Tk32,520 crore, which is Tk3,454 crore more than the previous fiscal.
Armed forces division is supposed to get Tk38 crore with no development expenditure which is Tk3 crore more than the previous one.
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Education sector to see increase of Tk13,213cr
The previous fiscal year saw an allocation of Tk79,486 against last year's allocation of Tk66,273
A sum of Tk79,486 crore has been proposed for the Education and Technology sector for 2019-20 fiscal year – Tk13,213 crore more than the budget passed last year, which was Tk66,273.
Since Bangladesh's independence, this is the highest amount allocated for the education sector. It is 15.2% of the total drafted budget.
The proposed budget allocation for the public administration is also the highest ever – with 18.5% of the total budget for the FY2019-20.
The government allocated Tk29,624 crore to the Education Ministry, Tk24,040 crore for the Science and Technology Ministry, and Tk7,454 crore for the Madrasa Education division.
The amount allocated to the Education and Technology sector is 3.04% in Gross Domestic Production (GDP).
Neighbouring country India allocated only 2.05% of its union budget at Rs93,847.64cr for FY2019-20, while Nepal allocated 10.6 % of their annual budget at Rs16,376cr.
Prime Minister Sheikh Hasina announced the budget on behalf of Finance Minister AHM Mustafa Kamal, as he was ill.
She announced that more educational institutions would be enlisted under the Monthly Pay Order (MPO) list.
If necessary, Bangladesh will also bring in teachers and trainers from abroad, the budget speech added.
Interactive classrooms will be installed in 503 model schools. The budget also recommended installing four polytechnic institutes for female students.
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Tk61,455cr allocation for communication infrastructure
The budget for the communication infrastructure sector was Tk53,081 crore in 2018-19 fiscal year
Finance Minister AHM Mustafa Kamal has proposed Tk61,455 crore for the communication infrastructure sector in the national budget of the 2019-20 fiscal year.
“The implementing of the Padma Bridge is underway, along with the tunnel under the Karnaphuli riverbed, the Dhaka Elevated Expressway from Hazrat Shahjalal International Airport to Kutubkhali on Dhaka-Chittagong Highway and many other mega projects.
"These projects have been undertaken and being implemented in order to establish an integrated and uninterrupted communication network in Bangladesh,” he said while placing the budget at the Jatiya Sangsad Bhaban on Thursday.
“About two kilometre structure of the Padma Bridge, being constructed entirely with our own resources, is now visible, and the overall physical progress of the project is 67% ,” he added.
The minister said: "The second Kanchpur, second Gomoti, and second Meghna Bridge have been opened for traffic after completing construction ahead of the stipulated time.
"South Asia Subregional Economic Cooperation road connectivity projects one and two are being implemented in order to be connected with the global transport network to reap the benefits of globalization."
The minister added that the government is implementing the Revised Strategic Transport Plan (2015-2035) to develop internal road networks in the Dhaka metropolitan area, reduce traffic congestion at the entry and exit points of the capital and establish a planned as well as integrated modern public transport system and its adjacent areas.
Under this plan, the finance minister said the construction of the first Metro Rail in Bangladesh, MRT Line 6 from Uttara to Motijheel is in progress.
Alongside, the implementation of Bus Rapid Transit (BRT) from Hazrat Shahjalal International Airport to Gazipur is also underway, the minister stated.
He said steps to build a safe, environment-friendly and modern information technology (IT) based road transport and control systems are underway.
A plan has been taken up to install directional sign-signal and kilometre posts in 8,100 spots.
The minister said steps have been taken to gradually upgrade all national highways into four lanes or above in order to modernize the country's road transport system.
"In this respect, 509km national highway has been upgraded into four lanes while upgradation of another 507km highway is going on," he added.
Kamal said: "The present government is giving top priority to the railway sector in order to make railway an economical, safe, and environment-friendly mode of transport.
"For the overall development of railway, the government has undertaken a 30-year master plan spanning from 2016 to 2045 at a cost of Tk553,662 crore."
"Development of necessary infrastructure and facilities at sea ports are also in progress. A plan for construction of the Bay-Terminal at the Chittagong port at a cost of Tk17,000 crore has been undertaken.
"The handling capacity of the Chittagong port will be enhanced in the next financial year from 2.8 million TEUs to 3 million TEUs,” the minister added.
Besides, the construction of the third terminal at the Hazrat Shahjalal International Airport is in progress to enhance its passenger handling capacity to 12 million, he said, adding works for the site selection and feasibility study on the construction of Bangabandhu Sheikh Mujib International Airport is in progress.
The budget for the communication infrastructure sector was Tk53,081 crore in the last fiscal.
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IT gets Tk1,930 crore boost
Posts and Telecom gets Tk3,456 crore
Allocation for the Information and Communication Technology (ICT) Division rose by 11.11% from previous year's budget to Tk1,930 crore while Posts and Telecommunications Division received Tk3,456 crore in the proposed budget for 2019-2020 fiscal, placed by Finance Minister AHM Mustafa Kamal at Jatiya Sangsad on Thursday.
The minister said a strong infrastructural base for ICT has already been set up at the grassroots level of the country.
“We still continue to put new infrastructure and facilitate program in place for extension of internet services to cope with the increasing demand,” he said during his budget speech.
Broadband internet access facilities have been expanded to union level, he said adding: "All districts and divisions in the country have already been brought under the 4G network, and mobile networks have been established in inaccessible upazilas. The government is taking necessary preparations to quickly roll out fifth generation (5G) mobile services.”
Tk100 crore to boost startup ventures
In the proposed budget, Tk100 crore has been allocated for creating startups, or business ventures, amongst the youth. VAT exemption has been provided for outlet businesses which are run by women entrepreneurs.
Tk50 crore for research and development
Allocation of Tk50 crores has been proposed in the budget for research and development.
Minister Kamal said science-based research and development is one of the prerequisites for increasing productivity and keeping long-term economic growth higher. "It will be created to encourage the country's research and development activities."
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Rubana Haque told Dhaka Tribune, “Allocation for boosting startups and research sector will be more benefited. And it will contribute to making skilled manpower in the country.”
IT network encompassing legal horizon
The government has taken initiatives to bring all the courts under e-Judiciary program.
Finance Minister Kamal's proposal was presented by Prime Minister Sheikh Hasina, who continued in his absence due to his ill health.
In the budget speech, it has been said initiatives were taken to bring all the courts under the ICT network through e-judiciary activities to bring more speed in the management of the case.
Besides, a cyber tribunal has been formed in Dhaka to ensure the speedy and effective trial of the crimes committed under the Information and Communication Technology Act and the process of forming seven more cyber tribunals in seven divisional cities in progress.
The prime minister said: "Four Appellate Division and 30 chamber including ejlash in High Court Division will be renovated and constructed for increasing the capabilities of its. Besides, all activities of Supreme Court and subordinate courts will be brought under automation and network coverage.
The current status, present status, hearing date, result and complete judgment of all trial cases will be published in the websites regularly.
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FY20 budget aims to achieve 8.2% GDP growth
During FY2017-18, Bangladesh had attained a 7.86% growth
Bangladesh government has set a target of 8.2% gross domestic product (GDP) growth for the next fiscal year (FY2019-20).
Finance Minister AHM Mustafa Kamal came up with the projection on Thursday while he was announcing the national budget worth Tk523,190 crore in the parliament.
He said: “Our GDP grew consistently at a very high rate in the last decade. We expect a GDP growth rate of 8.13% in the outgoing fiscal year. Our aim is to achieve a growth rate of 10% by FY2023-24, and maintain that rate until 2041 so that we can lay a solid foundation for becoming a high income country by that time.”
To achieve this objective, the GDP growth rate was projected at 8.2% for FY2019-20, said Kamal.
Last week, the World Bank kept Bangladesh’s growth rate for the outgoing fiscal year unchanged at 7.3% with strong infrastructure spending, private investment and domestic consumption.
However, the government estimated 8.13% GDP growth for FY2018-19 to end on June 30. During FY2017-18, Bangladesh had attained a 7.86% growth.
Inflation projected at 5.5%
The government has forecast a 5.5% inflation during the 2019-20 fiscal year.
Prime Minister Sheikh Hasina announced the projection in parliament on Thursday, as she took over the presentation of the Tk523,190-crore national budget for the upcoming fiscal year.
As of March 2019, the average inflation rate stands at 5.4%, according to the data provided by the Bangladesh Bureau of Statistics (BBS).
“The inflation rate during this year is projected at 5.5%. Our goal for the 2019-20 fiscal year will be to enhance the competitiveness in all our business sectors, including agriculture, industry, commerce, exports, real estate, and services sectors,” she said in the budget speech.
The purpose is to reduce poverty, generate employment, and attract foreign investment, the prime minister said.
The government will also adopt special measures for small and medium enterprises to facilitate the assimilation of the marginal people into mainstream development, and take steps to reduce income inequality, she further said.
The announcement for the proposed national budget for 2019-20 fiscal year began around 3pm on Thursday.
The budget amounts to Tk523,190 crore – the biggest-ever in the country’s history.
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Tk 1 billion fund proposed for startups
The government has allocated Tk 1 billion as start-up capital in the proposed national budget for 2019-20 fiscal placed to promote startups.
Finance Minister AHM Mustafa Kamal made the announcement while placing a Tk 5.23 trillion budget for the upcoming fiscal in parliament on Wednesday (Jun 13), reports BSS.
The initiative aims to exploit the full potential of the demographic dividend that is available for Bangladesh.
Acting under the slogan of “Power of Youth: Prosperity for Bangladesh”, the government in this new budget is taking necessary steps to transform youths, one-third of the total population in the country, into well-organized, disciplined and productive forces.
To create jobs for the unemployed youths and generate self-employment opportunity, skill development trainings in different subjects are being provided to youths through 111 formal training centres across the country, and 498 training centres at the upazila level.
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