Bangladesh refocuses on development goals with Tk 6.78tn budget for FY23

Against the backdrop of a global economic crisis wrought by a mix of the coronavirus pandemic and the war in Ukraine, the government has rolled out a Tk 6.78 trillion spending plan with the aim of bringing Bangladesh back on the path to development.

Finance Minister AHM Mustafa Kamal tabled the national budget for fiscal 2022-23 -- the biggest in the country's history -- in parliament on Thursday.

The proposed budget, equivalent to 15.23 percent of the national GDP, is Tk 5.9 trillion or 14.24 percent higher than the revised outlay for FY22.

The budget for the outgoing fiscal year had marked a 12 percent increase from FY21, which was equivalent to 17.4 percent of the GDP.

Earlier, President Abdul Hamid had signed the budget proposal after it was approved by the cabinet.

Last year, the finance minister grappled with the task of striking a balance between protecting public health and livelihoods amid a raging pandemic last year.

One of the main challenges facing the government this year, however, will be to minimise the impact of the war in Europe, which has left the global market reeling and sparked fears of mounting inflation.

With an aim to lead Bangladesh to the group of developed countries by 2041, Sheikh Hasina’s government has, with the exception of the last two years, prioritised the development sector while designing the national budget.

As the government was able to successfully ride out the economic downturn induced by the pandemic, Kamal plans to recast the focus on development.

Despite the ramifications of the Ukraine war on most economies worldwide, the minister continued the trend of year-on-year growth in government spending with the latest budget.

The Tk 6.78 trillion budget will see a 17 percent increase in development outlay, which stands at Tk 2.59 trillion. This includes an allocation of Tk 2.46 trillion for the Annual Development Plan, which has been approved already.