Budget for FY 2014-15 on June 5

Finance Minister Abul Maal Abdul Muhith will announce the annul budget for the fiscal year 2014-15 (FY15) at the Jatiya Sangsad on June 5.

The official said the date for announcing the budget for the next financial year is almost final though no official directive has been given yet.

This will be the country’s 43rd budget and the 15th budget of the Awami League government, BSS reports.

MuhithThe budget for the current 2013-14 financial year (FY14), announced on June 6, 2013, was the last budget of the previous

five-year tenure of the Awami League-led grand alliance government that came to power in a land-slide victory in 2008 general election.

Finance Minister AMA Muhith is unveiling the new budget early next month, which will be the first budget for the second consecutive five-year term of the grand alliance government under the leadership of Prime Minister Sheikh Hasina.

The finance minister already indicated that the size of the national budget would be around Taka 2,50,000 crore. The original size of the budget for the current FY14 was Taka 2,22,491 crore, which was later revised down to Taka 2,11,220 crore.

Muhith is announcing the budget with higher allocation after the budget monitoring and resources committee at a meeting on April 2 recommended an outlay of the budget between Taka 2,50,000 crore and Taka 2,55,000 crore.

The size of the Annual Development Programme (ADP) would be Taka 80,000 crore, projecting 32 percent growth over the revised ADP of Taka 60,000 crore for the current fiscal year. The original size of the ADP for FY14 was 65,870 crore.

The target of inflation would be kept at around 7.0 percent for the next fiscal when the GDP growth would be projected at 7.3 percent.

The deficit would be between Taka 67,000 crore and Taka 68,000 crore when efforts would be put in place to keep the deficit under 5 percent of the projected GDP for the coming fiscal.

To maintain this lower level of budget deficit, the finance minister last week told the consultative meeting of the National Revenue Board (NBR) that the revenue collection should be expedited as contribution of revenue to the country’s gross national income (GNI) was hovering around 3.0 percent in the past five years.

He said the tax-GDP ratio, which is now 13 percent, should be increased to 18 percent in the next five years for sustainable development.

The finance minister also said that the upcoming budget would not leave any scope for whitening black money as people have been offered for years.

The finance minister, however, said the fiscal policy would persistently cushion productive sectors with continuing the support of incentives.

He said the new fiscal policy would have enough mechanism to safeguard the interest of local industries and entrepreneurs, but

progressive liberalization of trade would not be hindered.

Muhith said the tax and tariff system for service and transport sectors including telecommunication and road-transport would be simplified further.

He said that the tax-free income for individual would be fixed at Taka 2.25 lakh in the next budget, which would be fixed for the next five years. Currently, a personal income of up to Taka 2.20 lakh is not subject to tax.