Bangladesh trims national budget by Tk 120 billion to Tk 2.38 trillion over political unrest

The government has downsized the current national budget by Tk 120 billion, saying political unrest forced it hands.

Finance Minister Abul Maal Abdul Muhith made the disclosure at a pre-budget meeting with representatives of NGOs on Tuesday in Dhaka.

He said: “The size of the 2014-15 FY budget was Tk 2.50 trillion. Now we’ve downsized it to Tk 2.38 trillion.”

Explaining the reasons, Muhith said: “Until December, I used to believe firmly that our (GDP) growth will be above 7 percent.

“But due to the violent politics of the BNP-led alliance now it seems that it will not be possible. That’s why we revised the budget.”

The government has already cut the Annual Development Programme (ADP) to Tk 750 billion from Tk 803.15 billion.

Budget deficit will remain below 5 percent

Muhith said the 2015-16 FY’s budget would be around Tk 3 trillion.

“We have to announce a deficit budget this time too. And that (deficit) will remain below 5 percent like the current financial year’s budget,” he added.

The government projected a 5 percent budget deficit for the 2014-15 FY and 4.6 percent for 2013-14 FY.

The deficit of 2013-14 FY, however, swelled to 5 percent in the revised budget.

Priority on human resources, social development

The finance minister will attach highest importance to human resources and social development in the new budget.

Muhith said: “Until now we used to give priority to the energy and communication sector. This time we want to shift it (priority).