The size of the Bangladesh’s National Budget FY’2023-24 is BDT 7.62trillion which is 12% higher than the previous Budget FY’2022-23. The target of total tax revenue this year is 5 trillion which is 15% higher than the revised budget of FY’2022-23 and also ambitious for the sluggish in economic activities and disposable level. About 56% of the budget 2023-24 will be financed by NBR tax revenue, which is challenging due to lack of taxpayers and tax-culture. This year domestic borrowing proposed is BDT 1.55 trillion which could limit private sector growth. In the proposed budget, ADP counted 2.63 trillion which may exceed the estimated BDT 2.62 trillion due to lower revenue receipts.
GDP and Inflation Paradox
- Global geopolitical crisis put down the 2021-22 Real GDP Growth to 6.03% from 7.10% in FY2021-22;
- The target 7.50% Real GDP growth can be attained subject to the faster economic recovery.
- Inflation rate may materially deviate from 6%, due to exchange rate pressure & domestic price spiral.
- Bangladesh’s ADP has grown by 1.75 times in past seven years (from Tk. 1,496 billion in FY2018-19 to Tk. 2,630 billion in FY2023-24). ADP expansion supports progresses in critical projects nationwide, mainly in the form of construction of roads, bridges, highways, flyovers, and government mega-projects such as Padma Bridge, Metro Rail, Ruppur Nuclear Power Plant etc.
- Among the broad sectors, human resources got the top priority, which is reflected by the highest figure of ADP between FY2021-24.
- The proposed ADP 2023-24 reckoned the highest priority in the agriculture and rural development.
- Communication infrastructure sector got the second priority in the context of ADP which is observable as per the chart- Sector wise ADP 2021-24.