SUBMITTED TO:NIPA SAHAASSISTANT PROFESSOR

Submitted By:Samiur Rahman Sajal ID: UG01-34-13-044

Budget : 2016-17

WHAT IS FISCAL YEAR ?

A 12-month period over which a company budgets its spending. A fiscal year does not always begin in January and end in December; it may run over any period of 12 months. The fiscal year is referred to by the date in which it ends. Basically fiscal year in our country July to June.

WHAT IS MONETARY POLICY? The monetary policy is defined as an act

undertaken by the authorities designed to influence.

Money supply Rate of interest The availability of money for achieving

specific objectives.

WHAT IS BUDGET ?

A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales volumes and revenues, resource quantities, costs and expenses, assets,

liabilities and cash flows.

BUDGET 2016-17 AT A GLANCE

Finance Minister AMA Muhith presented his mega plans for the 2016-17 fiscal in Parliament on Thursday.

Earlier, the Cabinet chaired by Prime Minister Sheikh Hasina approved the Tk 3,40,605Corror.

Which is increased 29% then Last year.

 GDP growth target 7.2%  Govt sets sub-6% inflation target Budget deficit is Tk97,853 crore Allocation for primary education up by over 50% Agriculture Ministry gets Tk13,675cr

SOURCES OF FUNDS

Tax Revenues 1. Income Tax2. Property Tax3. Tax on goods and

services4. Taxes on

international trade and transactions

5. Other taxes

Non-Tax Revenues

1. Operating and service income

2. Income from public enterprises/investments

3. Miscellaneous income4. Sale of Assets5. Grants and aids

BUDGET SOURCE 2016-17 Foreign grants

2%Foreign loans

9%

Domestic financ-ing

18%

Non-tax revenue9%

Tax revenue(Non-

NBR)2%

Tax revenue (NBR)60%

RESOURCES ALLOCATION 2016-17 Education : 50,017 corer Interest : 39,951 corer Transport & communication : 35,920 corer Energy and power : 15,014 corer Health : 15,883 corer Agriculture : 13,003 corer Defense : 19,609 corer Public Administration : 47,761 corer Social security :19.609 corer Public order and safety : 19,100 corer Housing : 3,065 corer Industrial service : 3,406 corer Miscellaneous Expenditure : 8,100 corer

USE OF RESOURCE TK 3,40,605CORE

Education, 15.6%

Interest, 11.7%

Transport & Communi-

cation, 11%

Local Government, 6.9%

Energy & Power, 4.4%Health, 5.1%Agricuture,

6.7%

Defence, 6.5%

Public Admin-istration,

13.9%

Social Security, 5.8%

Public Order, 6.2%

Housing, 0.9%Culture, 0.8%

Industrial Services, 1% Misc Expenditure, 3.5%

BANGLADESH GOVERNMENT EXPENDITURE FOR FISCAL YEAR 2016-17 Public Services: 56696 crore taka Local Govt and Rural Development: 20996 crore taka Defense Services: 18383 crore taka Public Order and Safety: 13630 crore Education and Technology: 34370 crore Health: 12695 cr Social Security and Welfare: 16725 cr Housing: 2918 cr Recreation, culture and religious affairs: 2283 crore Fuel and Energy: 18540 crore Agriculture : 19979 cr Industrial and Economic Services: 2755 crore Transport and Communication: 28700/- Interest : 35109 cr taka

PROBLEMS Budget proposes to levy VAT on private

universities, medical and engineering colleges.

Bangladesh sets to cut subsidy by 5.5% in coming budget

Long term barriers on agriculture development.

People will not get proper health service. Education industry get ling term impact such

as

1. Girls are demotivated if they don’t get any support from govt.

2. Parents will not allow their children to go school for avoiding bear extra cost Public Finance

RECOMMENDATIONS Focus resources on improved auditing, processes,

and tools. Use simple segmentation to identify larger

collection opportunities. Ensure regular updates to the taxpayer registry. Use electronic channels for simple transactions. Simplify the tax system to encourage formalization

Public Finance. Tax should be imposed VIP road user. Reward on tax pay system to motivate eligible

people who do not give tax Impose tax on domestic flight Public Finance