Chapter-1

Introduction to Budget

1.1 Budget

Budget is an estimate of costs, revenues, and resources over a specified period, reflecting a

reading of future financial conditions and goals. The term “Budget” is commonly understood as
a document presented by a government containing an estimate of proposed expenditure for a
given period. Government budget is a schedule of all revenues and expenditures that the
government expects to receive and plan to spend during the following year.

According to Prof. Rene Stourn, “Budget is a preliminary approved plan of public revenue and
expenditure.”

B.E Buck defines budget as “a) Finance plan, b) A procedure formulating, authorizing,
executing and controlling this plan and c) some government authority responsible for each
successive step in this procedure.”
Government Budgets contain the strategies for mobilization, allocation and disbursement of
public money by means of fiscal and monetary operations with due consideration of political,
economic, and bureaucratic decision - making process. Constitutionally, Bangladesh uses the
term 'Annual Financial Statement', which shows the estimated receipts and expenditures
of the government for particular financial year. In accordance with the Constitutional
provisions in the country, the budget is divided into Consolidated Fund (CF) and Public
Account (PA) of the Republic.

1|Budget Analysis
1.2 Types of Budget

Based on the balancing of revenue and expenditure, budget is divided into two types. These are-
a)Balanced budget :
Is a Government budget where the current expenditure equals current revenue? Most government
budgets are unbalanced almost always on the expense side, purportedly to spur growth and
reduce unemployment by creating demand with additional money supply. In this budget which
revenues are equal to expenditures? Thus, neither a budget deficit nor a budget surplus exists.
More generally, it refers to a budget that has no budget deficit, but could possibly have a budget
surplus.
b)Unbalanced budget :
The budget imbalance may be due to an excess of expenditure over income or an excess of
income over expenditure. Budget may either surplus or deficit. A surplus budget means a budget
when public revenue exceeds public outlay (R>E). A deficit budget means a budget when public
expenditure exceeds revenue (R<E). This budget again divided into two section.

Surplus Budget: If the government collects more revenue than it is spending, it is in

surplus
Deficit Budget: If the Government spends more than it collects, there is a deficit.
Again the government budget is divided into
Revenue budget

2|Budget Analysis
 Capital budget
Chapter-2
An Analysis of the Budget of Bangladesh for the
Fiscal year 2014-15

2.1 Highlights: Present Budget FY14-15

Bangladesh has found its 44 budget in this fiscal year known as FY14-15. This is the 1 budget of
present government in this term. With lots of hopes Finance Minister Abul Maal A Muhith
announce the 44 Bangladesh National Budget in the parliament on 5 June, 2014 for the year
2014-15 which is the 8 budget of this minister. With lots of investment scope & with the priority
of power, energy and agriculture sector present government announce its budget. This budget is
passed on 30 June, 2014 & implement from 1 July, 2011 for FY11-12.

3|Budget Analysis
2.2 Budget Analysis:

The present Budget of Bangladesh for the year FY14-15 has been presented at a time when the
Bangladeshi economy is heading towards a high growth trajectory, albeit certain challenges such
as elevated inflation, high Current Account Deficit (CAD), and moderating growth of industrial
production, lack of capital investment, poor level of power & energy, low level of liquidity, etc.
At the current juncture, what was required from the Budget was to address the issue of inflation
and support growth momentum, while maintaining the focus on fiscal consolidation and
continuing ahead on the reform agenda. Increased allocation of planned resources towards
infrastructure projects along with the proposals to direct foreign funds and private saving
towards infrastructure sector will unlock much of the growth potential of the sector.

Although the continued force on infrastructure along with power & energy, agriculture and
education sectors is expected to provide significant impetus to economic growth in the medium-
term, measures to control inflation in the immediate future were missing in the budget
announcements.

On the fiscal deficit front, the budgeted fiscal deficit is 5% of GDP for FY14-15. This indicates
government will face lot of trouble in near future. This can be reduced through increasing Tax
revenue, reduce debt service liability and etc.

2.2.1 Budgeted Expenditure for FY14-15

For FY14-15, total expenditure is budgeted to increase by 15.9% to 250,506 Crore Taka as

compared to the revised estimates (RE) for FY13-14. The development expenditure, however, is
budgeted to register a great increase compared to the revised estimates of FY13-14; the
expenditure on this front is slated to increase by 32.50%.

2.2.2 Budgeted Revenue for FY14-15

For FY14-15, total income is budgeted to increase by 16.80% to 182,954 Crore Taka as

compared to the revised estimates (RE) for FY13-14. The Tax revenue, however, is budgeted to

4|Budget Analysis
register a great increase compared to the revised estimates of FY14-15; the revenue on this front
is slated to increase to 149,720 Crore Taka.
2.2.3 Budgeted NBR-Tax Strategy for FY14-15
Gross tax revenue for FY14-15 is budgeted to increase by 19.30% over the FY13-14 RE, In
FY14-15, NBR revenue represents around 88% of the total revenue. 44.6% of incremental
revenue from income tax; while 34.8% from VAT. Import duty collection growth target is set at
8.6%.

Many steps has been already taken for the purpose of increasing efficiency of NBR. Such as,

simplification of tax return forms, e-payment system, e-TIN registration, e-TDS, e-Filling,

implementation of VAT online project etc.

2.2.4 FY2015 budget proposals which ought to be appreciated:

 Launch of online registration from 01/01/2015 and online filing of return by end

 June, 2015

 Setting a cap for maximum penalty of VAT evasion

 1% ‘Health Development Surcharge’ and tax incidence hike for cigarettes

 Tax exemption of services related to the export-oriented industries

 Existing 23 sectors under the VAT regime will be charged the ‘standard’ VAT rate of
15%.

 VAT enhancement in English medium schools, jewelry items and land development and

building construction sectors

 VAT reduction on edible oils to stabilize consumer prices

 Reduction of supplementary duty on filament bulbs

 Exemption of kidney dialysis procedures from VAT

 Fixed tax on replacement sim

5|Budget Analysis
 Chapter-3

An Analysis of the Budget of Bangladesh for the

Fiscal year 2015-16

3.1 Budget FY2015-16 at a Glance

6|Budget Analysis
Budget of Bangladesh in 2013-14 to 2015-16 Economic Years:

3.2 Developmental and Non-developmental Budget

Category Year 2013-14 Year 2014-15

Amount(in Percentage Amount(in Percentage
core) core)
Developmental 67327 30.26% 81808 32.66%
Non 155163 69.74% 168699 67.34%
Developmental
Total 222491 100% 250506 100%
FY '16 FY '15(Revised)
Revenue Earnings 2084.43 1633.71
NBR tax revenue 1763.7 1350.28
Non-NBR tax revenue 58.74 56.48
Non-tax revenue 261.99 226.95
Public Expenditure 2951 2396.68
Non-development expenditure 1645.71 1273.71
Development Expenditure 1025.59 804.76
Other Expenditure 279.7 318.21
Budget deficit 866.57 762.97
Financing
Domestic Sources 565.23 547.14
Bank Borrowing 385.23 317.14
Non- Bank Borrowing 180 230
External Sources 301.34 215.83
Table: Summary of the Budget (BDT bn) Year 2015-16

3.3 Analysis

In between 2013-14 and 2014-15 economic year developmental budget is increased 2.4%, on the
other hand non development budget decreased 2.4% which indicate that government has given
more emphasis on development activity rather than non-development sector. The budget for

7|Budget Analysis
FY’16 is BDT 2951.00 billion in size which is 23.1% higher compared to that of the FY’15
revised budget and the largest of its history.

Estimated GDP growth rate for fiscal 2015-16 is 7.3%.If GDP growth in FY15 has to be 7.3%,
private investment (as % of GDP) has to grow from 21% to 25% (4-5% percentage points or
around Tk. 75,000 core additional amount of private investment or USD 9.5 billion) in a single
year. It is an impossible target. GDP growth rate was estimated 6.5% for fiscal year 2013-14.

The budget has revenue target of BDT 2084.43 billion which is 27.6% higher than that of the
FY’15 revised budget. Projected deficit of the budget is BDT 675.52 billion which is 5.0% of
GDP and 29.4% of the budget. Non-development expenditure is BDT 1645.71 billion which is
55.8% of the budget and development expenditure is BDT 1025.59 billion, 34.8% of the budget.
Sector-wise, Public services has got the highest allocation (19.2%) followed by Interest Payment
(11.9%) and Education (10.6%) respectively.

Private sector credit growth for FY14 is reported to be 16.5% (11.5% as of March 2014).
Inflation rate to come down to FY14 at 7.0% (7.5% in April 2014) and target for FY15 is set at
6.0%. Export is expected to increase by 15% in FY15. Import on the other hand is anticipated to
grow by 15% in FY15. 10% growth of remittances inflow is envisaged for FY15 ((-) 3.6%
growth during Jul- May FY14). Foreign exchange reserve at the end of FY14 will be $16.9
billion (20.4 billion on 3 June’14).

The total ADP size in the Budget FY’16 is BDT 970.00 billion which is 29.3% higher than that
of FY’15 revised budget. In the ADP for FY’16, 22.0% is allocated to Human Resource sector
(education, health and others), 25.3% to overall agricultural sector, 19.1% to energy sector,
22.3% to communication sector and the rest 11.4% is allocated to other sectors. The government
has scaled up its revenue generation target to BDT 2084.43 billion, a rise of 27.6% from BDT
1633.71 billion of the FY’15 revised budget. The targeted revenue is 12.1% of the GDP, down
from 13.7% of GDP in previous fiscal year. Estimated 12.1% revenue to GDP ratio is very low.
Our Tax-GDP ratio (around 10.6% in the FY’16 proposed budget) still lags behind many
developing countries. This year’s budget deficit is kept unchanged to that of the previous year’s
budget at 5.0% of the GDP. The total Budget deficit is estimated to be BDT 866.57 billion. Out
of which domestic source will finance 65.2% and external source will finance 34.8%. Out of

8|Budget Analysis
domestic sources, Govt. will borrow BDT 385.23 billion from the banking system, which is
23.4% jump from the FY’15 targeted bank borrowing (21.5% up from the revised budget
FY’15).

3.4 Revenue:

Government Revenues refer to all receipts the government gets, including taxes, custom duties,
revenue from state-owned enterprises, capital revenues and foreign aid. Government Revenues
are part of government budget balance calculation.

Government of Bangladesh collects its revenue from various sources and they are mainly
categorized in two types, Tax Revenue and Non Tax Revenue. The income of government
through different sources is known as revenue or public revenue or public income. These sources
include income from taxes, fees, fines, gift and grants etc.

3.4.1 Type of Revenue

A. Tax Revenue

Tax revenue mainly collected by National Board of Revenue (NBR) but there are some other
sources of taxes which are not collected by NBR.

a. National Board of Revenue (NBR) Tax

 Taxes on Income and Profit

 Value Added Tax (VAT)
 Import Duty
 Export Duty
 Excise Duty
 Supplementary Duty
 Other Taxes and Duties

b. Non-NBR Tax
 Narcotics and Liquor Duty
 Taxes on Vehicles

9|Budget Analysis
  Land Revenue
 Stamp Duty (Non Judicial)

B. Non-Tax Revenue
 Dividend and Profit
 Interest
 Administrative Fees and Charges
 Fines, Penalties and Forfeiture
 Receipts for Services Rendered Rents, Leases and Recoveries
 Tolls and Levies
 Non-Commercial Sales
 Defense Receipts
 Other Non-Tax Revenue and Receipts
 Railway
 Post Offices
 Capital Revenue

10 | B u d g e t A n a l y s i s
 Foreign grants; 2
Foreign loans; 8.2

Domestic financing; 19.1

Tax revenue(NBR); 59.8

Non-tax revenue; 8.9

Tax revenue(non-NBR); 2

Foreign grants Foreign loans Domestic financing

Non-tax revenue Tax revenue(non-NBR) Tax revenue(NBR)

Fig: Internal Revenue Target '16

25%
37%
Corporate Tax
Import SD
Import VAT
Custom Duty
11% Local SD
Local VAT
11% 12%
3%

11 | B u d g e t A n a l y s i s
3.5 Analysis:

The revenue budget pays for the normal functioning of the government and is intended to be
fully financed from domestically generated sources. Tax revenues, almost half of them from
customs duties, accounted for about 80 percent of revenue receipts. Excise duties and sales taxes
also were important, each producing more revenue than taxes on income.

Most types of revenue have increased from 2013-14 to 2014-15. Tax on income and profit is the
major source of revenue, after that VAT hold second position, supplementary duty is in third
position which is decreased 0.59% in 2014-15 year to 2013-14 year. NBR collect the lion’s share
of revenue. Export duty is a minor source of tax. Overall there is 9.25% increase in revenue
collection between two years.
.

12 | B u d g e t A n a l y s i s
 3.6 Analysis of Budget Revenue of 2013-14 and 2014-15 Economic Year of Bangladesh

Year 2013-14 Year 2014-15

Amount(in % Amount(in %
core) core)
Tax NBR Taxes on Income and Profit 48,297 28.84 56,086 30.66
revenue Tax
Value Added Tax (VAT) 49,956 29.83 55,013 30.07
Import Duty 14,629 8.7 14,590 7.97
Export Duty 45 0.03 33 0.02
Excise Duty 1,310 0.78 1,251 0.68
Supplementary Duty 20,853 12.45 21,334 11.66
Other Taxes and Duties 1,000 0.60 1,413 0.77
Non Narcotics and Liquor Duty 70 0.04 77 0.04
NBR Taxes on Vehicles 1,155 0.69 1,248 0.68
Tax Land Revenue 640 0.38 738 0.4
Stamp Duty (Non Judicial) 3,264 1.95 3,509 1.92
Dividend and Profit 4,693 2.8 4,932 2.7
Non Interest 1,087 0.65 727 0.4
Tax Administrative Fees and 4,374 2.6 4,501 2.46
revenue Charges
Fines, Penalties and Forfeiture 427 0.25 458 0.25
Receipts for Services 831 0.50 495 0.27
Rendered
Receipts for Rents, Leases 155 0.09 159 0.09
and Recoveries
Tolls and Levies 475 0.28 495 0.27
Non-Commercial Sales 383 0.23 389 0.21
Defense Receipts 2,518 1.5 2,539 1.39
Other Non-Tax Revenue and 9,973 5.96 11,507 6.29
Receipts
Railway 1,000 0.60 1,100 0.6
Post Offices 264 0.16 294 0.16
Capital Revenue 60 0.04 66 0.04
Total 1,67,459 100% 1,82,954 100%

13 | B u d g e t A n a l y s i s
3.7 NBR Tax Revenue

The budget for the FY’16 has targeted BDT 1763.7 billion revenue from NBR tax which is
84.6% of the target revenue. This is 30.6% higher than that of FY’15’s revised budget. In the
revised budget of FY’15, this target was BDT 1350.28 billion which was 82.7% of total revenue.
Of the total target, 37.4% will come from income tax and corporate tax, 37.2% from Value
Added Tax (VAT) and 25.4% from customs and supplementary duty. In order to achieve these
targets, automation in tax collection is set in to reduce complication in tax collection and
significant administrative reform has been done.

3.7.1 Non NBR Tax Revenue & Non Tax Revenue

There is target for BDT 58.74 billion or 2.8% of total revenue to collect from Non-NBR tax
which is 3.5% of total revenue in the current fiscal. Revenue from non-tax sources is estimated to
be BDT 261.99 billion or 12.6% of total revenue which was BDT 226.95 billion or 13.9% of
total revenue in the FY’15’s revised budge

3.8 Expenditure:

The expenses incurred by the governments for its own maintenance, preservation and welfare of
the economy as a whole referred as expenditure or public expenditure. The major cause of
increase public expenditure is developmental functions. Developmental functions include
education, public health, social security, irrigation, canal, drainage, roads, buildings etc.

3.8.1 Types of Expenditure

Developmental Sector
 Energy and power
 Transportation and communication
 Local Government and Rural development
 Education and Technology
 Agriculture
 Health
 Public Administration

14 | B u d g e t A n a l y s i s
  Social Security and Welfare
 Others

Non Developmental Sector

 Interest
 Education and Technology
 Defense
 Public Order and Safety
 Pension
 Public Administration
 Transportation and communication
 Social Security and Welfare
 Health
 Agriculture
 Subsidies
 Local Government and Rural development
 Housing
 Recreation , Culture and Religious Affairs
 Industrial and Economic Service
 Miscellaneous Expenditure

15 | B u d g e t A n a l y s i s
 Sectors (for fiscal year 2015-16) Amount( core tk) Percentage (%)

Industrial and economic service 2755 0.9

Recreation, culture and religious affairs 2283 0.8
Housing 2918 1.0
Public order and security 13630 4.6
Social security and welfare 16725 5.7
Public administration 56696 19.2
Defense 18383 6.2
Agricultural 19979 6.8
Health 12695 4.3
Energy and power 18540 6.3
Local government and rural development 20996 7.1

Transportation and communication 28700 9.7

Interest 35109 11.9
Education and information technology 34370 11.6
Miscellaneous expenditure 3.9

Sector Year 2013-14 Year 2014-15

Education and Technology 11.3% 12.4%
Interest 12.5% 12.4%
Transport and communication 9.0% 9.5%
Local Government and Rural development 6.6% 7.0%
Energy and Power 5.1% 4.6%
Health 4.1% 4.2%
Agriculture 3.6% 3.8%
Defense 5.6% 5.8%
Public Administration 10.6% 7.5%
Social Security and Welfare 5.1% 5.6%
Public Order and Safety 4.1% 4.5%
Housing 0.8% 0.8%
Recreation , Culture and Religious Affairs 0.8% 0.8%
Industrial and Economic Service 1.4% 1.2%
Pension 3.0% 3.4%
Subsidies 6.9% 6.6%
Miscellaneous Expenditure 9.5% 9.9%

3.9 Analysis:

16 | B u d g e t A n a l y s i s
In the proposed budget for FY’16, total expenditure has been estimated at BDT 2951.00 billion.
This is 17.2% of GDP and 23.1% higher than that of the revised budget for FY’15. The overall
expenditure framework has been categorized into three main groups based on their allocation of
businesses. Power & Energy allocation increased by 98.5% in Budget FY’16. These are social
infrastructure, physical infrastructure, and general services. In the proposed budget, 23.4% of
total outlay has been allocated to social infrastructure, 30.6% to physical infrastructure, and
28.0% to general services. Sector-wise, Public services, Interest Payment, and Education and
Technology have got preference having 19.2%, 11.9%, and 10.6% respectively. The allocation
for non-development expenditure has been set at BDT 1,645.71 billion. For development
expenditure, it has been estimated at BDT 1025.59 billion which is 6.0% of GDP and 27.4%
higher than that of revised budget of FY’14. Size of proposed ADP allocation is BDT 970.00
billion which is an increase of 20.8% from the budget for FY’15 and 29.3% higher than revised
budget for FY’15. In ADP agriculture and rural development got the highest priority (25.3%
allocation). Transport and Communication, Human Resource, and Power and Energy got 22.3%,
22.0%, and 19.1% of the ADP allocation respectively.

17 | B u d g e t A n a l y s i s
 Figure: Sector wise Expenditure of the budget 2015-16 (in
crore taka)

Interest; 35109
Public Services; 56696

Transport and Communication; 28700

Industrial and Economic Service; 2755

Local Government and Rural Development; 20966
Agriculture; 19979

Defense services; 18383

Fuel and Energy; 18540

Recreation, Culture and Religious Affairs; 2283
Public Order and Safety; 13630
Housing; 2918
Social Security and Welfare; 16725
Health; 12695 Education and Technology; 34370

In 2013-14 economic year interest covers the largest share of expenditure and education and
technology cover the second position, public administration hold the third position. On the other
hand education and technology, and interest both cover the largest position in expenditure sector
but miscellaneous sector holds third position. Housing and recreation, culture and religious
affairs remain same for both years which are in last position. On transport and communication,
social security and welfare, pension, sector expenditure is increased in between 2013-14 to 2014-
15 year. But the other sector’s expenditures are decreased.

This remains constant for both current (non-advancement) and improvement consumptions of
Government in Bangladesh. The non-improvement open consumption incorporates the wages

18 | B u d g e t A n a l y s i s
and compensations bill and all other repeating sort spending. Under the proposed spending plan
for financial 2015-16, such non-advancement consumption will represent 11.5% of the nation
GDP contrasted with 10.7% (of the GDP) in the active one. In supreme terms, government non-
advancement spending will ascend to Taka 1.98 trillion in FY 2015-16 from Taka 1.61 trillion
under the changed spending plan for the active financial. On the advancement side, the proposed
spending plan for monetary 2015-16 has dispensed Taka 970 billion for financing the Annual
Development Program (ADP). The National Board of Revenue (NBR) has been given an
objective of acknowledging Taka 1.76 trillion as duties for FY 2015-16 under the proposed
spending plan. Such an objective, in the background of a setback of Taka 190 billion under the
amended spending plan for monetary 2014-15 in connection to the first one for the year, will
include a Herculean errand in regions of extension of duty system specifically. Its execution will
depend not just on its ventured up drive for income accumulation additionally on the force of
general financial exercises, for the most part in the private segment.

3.10 Deficit:

A budget deficit occurs when a government spends more money than it takes in. The opposite of
a budget deficit is a budget surplus.

According to budget of FY 2015-16 Government Budget deficit equal to 4.70 percent of the
country's Gross Domestic Product in 2015. Government Budget in Bangladesh averaged -3.42
percent of GDP from 1994 until 2015, reaching an all-time high of -2 percent of GDP in 1997
and a record low of -4.70 percent of GDP in 2015. Government Budget in Bangladesh is reported
by the Ministry of Finance, Bangladesh.

The deficit in the outgoing fiscal year was Tk613.46bn and is now expected to be Tk866.57bn in
the next budget, according to the budget document.

19 | B u d g e t A n a l y s i s
 BFY2015-16 RFY2014-15

Core Taka % of GDP Core Taka % of GDP

Revenue collection 182954 13.7 156671 13.3
Total Expenditure 250506 18.7 216222 18.3
80315 6.0 60000 5.1
 ADP
170191 12.7 156222 13.2
 Non-ADP
Overall Deficit(Excl 67552 5.0 59551 5.0
Grants)

3.11 Analysis:

In 2013-14 economic year total amount of the budget including developmental and non-
development was 2224.9 million. From this government revenue was 1674.9 million. So there is
550 million deficits in the budget. Government is fulfilled this deficit by foreign grants, domestic
finance, foreign loan. But in 2014-15 economic years total size of budget was 2505.06 million
and deficit was 675.52.

The budget deficit for the FY’16 will be BDT 866.57 billion or 5.0% of GDP. Though budget
deficit has increased by 13.6% from the revised budget of FY’15, deficit to GDP ratio hasn’t
increased. Deficit to GDP ratio in India, Pakistan and Sri Lanka in the FY’16 are 3.9%, 4.3% and
5.0% respectively. Considering that Bangladesh’s deficit is not that high, financing the deficit is
challenging but possible.

20 | B u d g e t A n a l y s i s
3.12 Analysis of Figure: Negative Trend of budget deficit and its share in GDP. This Data is
courtesy of tradingeconomics.com and in X-axis, its indicating the respective financial year and
on the other hand, in Y-axis, its showing portion of deficit in GDP.

1. Finance:

Finance of budget is required to accomplish the shortage of the budget occurs from expense
more than revenue generation. The following table shows the contribution of different sources to
overcome deficit in fiscal year 2015-16. The data of fiscal year 2014-15 is also given for
comparative analysis.

21 | B u d g e t A n a l y s i s
There are 6 types of financing source of Budget. They are
 Tax Revenue(NBR)
 Tax Revenue(Non NBR)
 Non Tax Revenue
 Domestic Finance
 Foreign Loan
 Foreign Grants

Financing sources FY2015-16 FY2014-15

Core Taka % of GDP Core Taka % of GDP

Foreign Grants 6206 0.5 5956 0.5
Foreign Loan-Net 18069 1.3 12613 1.1
Foreign Loan 26519 2.0 21058 1.8
Amortization 8450 0.6 8445 0.7
Domestic Borrowing 43277 3.2 40982 3.5
31221 2.3 29982 2.5
 Bank Borrowing (Net)
12056 0.9 11000 0.9
 Non-Bank
Borrowing(Net)
Net Aid Requirement 24275 1.8 18569 1.6
Net Aid Requirement 3.1 1.8 2.4 1.6
(USD)
Gross Aid Requirement 32725 2.4 27014 2.3
Gross Aid Requirement 4.1 2.4 3.4 2.3
(USD)

22 | B u d g e t A n a l y s i s
 % of Total
Budget Expenditure
2015-16
Name of the sources:
Overall Financing: 295,100 100.0
External Sources 30,134 10.2
Foreign Grants 5,800 2.0
Foreign Borrowing (Net) 24,334 8.2
Internal Sources 264,966 89.8
Revenue to finance Non Dev. Rev. Exp 164,571 55.8
Revenue Surplus 43,872 14.9
Domestic Borrowing 56,523 19.2
Borrowing from Banking System (Net) 38,523 13.1
Non-Bank Borrowing (Net) 18,000 6.1

3.13 Analysis:

Tax revenue from National Board of Revenue (NBR) is the major source of financing. But in
2014-15 economic year Tax revenue (NBR) is increased 1.4% than the past year. In 2013-14
economic year total revenue is 75.3% of budget and other 24.7% resources was collected from
different sources such as: domestic finance, foreign loan, and foreign grants and among them
domestic finance cover the lion’s share. On the other hand in 2014-15 economic year revenue is
73.0 % of total budget and other 27.0% was collected from different sources, they are domestic
finance, foreign loan, and foreign grants among them domestic finance are major, which is
increased 2.0% from the previous year.

23 | B u d g e t A n a l y s i s
Conclusion

Budgeting is an important component of financial success and one that's not difficult to
implement. Let's recap what you've learned in this tutorial:

1. Budgeting isn't just for poor people or for times when money is tight or your life is
undergoing a major transition. Budgeting is for everyone because it makes it easier to
achieve financial goals of all shapes and sizes, whether that goal is to stay out of debt
next month or to pay cash for a sports car.
2. Budgeting allows you to make long- and short-term projections about your financial
situation, prevent crises, get the most out of your money, plan for major life changes and
enjoy peace of mind.
3. Budgeting systems – ranging from a simple notepad and pen to online financial
management software to smartphone apps – are available for all needs and preferences.
4. Budgeting monthly, rather than by the paycheck, can help you learn to take a longer-term
view of your finances.
5. Keep track of all your expenses not just the big ones. There’s nothing wrong with buying
a latte every day, but you should know how much you’re spending on them and make
sure that you’re spending within your means.

A budget is a great tool not only for managing your money but for helping you sleep soundly at
night. With a well-constructed and well-maintained budget, you’ll always know where your
money is going, if you're on track to meet your financial goals and that you've planned to
weather the storms that will arise from time to time.

If your spending is too high for your income, a budget serves as a pesky but necessary reminder
that you need to change things – and the sooner you listen to those irksome numbers, the better
off you'll be. Living paycheck to paycheck only works temporarily; sooner or later you will have
an expense you can't meet or a goal you can't achieve if you don't learn how to budget.

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 Bibliography

Important web links

1. https://www.linkedin.com
2. www.academia.edu
3. https://www.budget.gov.hk
4. https://www.wikipedia.org
5. www.bbs.gov.bd
6. https://www.mof.gov.bd

Books reference

1. Articles of The Daily Star ( Budget Analysis of 2014-15 )

2. Articles of BBS ( Budget Analysis of 2015-16 )

25 | B u d g e t A n a l y s i s