Tk 7,97,000cr budget for next fiscal proposed

Finance Minister Abul Hasan Mahmood Ali on Thursday placed a Tk 7,97,000 crore national budget for the next fiscal year of 2024-25 in Jatiya Sangsad.

Mahmood Ali placed the budget in the JS in presence of Leader of the House and Prime Minister Sheikh Hasina.

The Finance Minister said he was announcing the budget amid growing challenges of containing inflation, maintaining a sound foreign currency reserve, a stable exchange rate and generating more revenues.

Placing the budget, the Finance Minister said the government has set a revenue collection target of Tk 5,41,000 crore in the proposed national budget for 2024-2025 fiscal (FY25), which accounts for 9.7 per cent of the GDP.

It is proposed to collect Tk 4,80,000 crore through the National Board of Revenue (NBR) and Tk 61,000 crore from other sources, he said.

The Finance Minister proposed budget deficit of Tk 2,56,000 crore, which is 4.6 per cent of GDP.

“Within the total proposed budget deficit, I propose Tk 1,60,900 crore from domestic sources and Tk 95,100 crore from foreign sources for financing,” he said.

On the other hand, the government has set the Annual Development Programme (ADP) outlay at Tk 2,65,000 crore for the next fiscal putting highest allocation in the transport and communication sector.

Of the total ADP outlay of Tk 2,65,000 crore, Tk 1,65,000 crore will come from the local sources and Tk 1 lakh crore from foreign sources.

The highest allocated 10 sectors in the ADP for next fiscal year (FY25) are: Transport and Communication Sector with an allocation of Tk 70,687.75 crore (26.67%), Power and energy sector with Tk 40,751.86 crore (15.38%), Education sector with Tk 31,528.60 crore (11.36%), Housing and Community Facilities Sector with Tk 24,868.03 crore (9.38%), Health Sector with Tk 20,682.88 crore (7.80%), Local government and rural development sector with Tk 17,986.21 crore (6.79%), Agriculture Sector with Tk 13,219.59 crore (4.99%), Environment, climate change and water resources sector with Tk 11,089.43 crore (4.18%), Industry and Economic services sector with Tk 6,492.18 crore (2.45%), and Science and ICT Sector with Tk 4,786.92 crore (1.25%).

These 10 sectors witnessed an allocation of Tk 2,42,093.45 crore, which is 90.25 percent of the overall allocation.

On the other hand, the highest allocated 10 ministries and Divisions are: Local Government Division with Tk 38,808.88 crore (15%), Road Transport and Highways Division with Tk 32,042.43 crore (12.39%), Power Division with Tk 29,176.70 crore (11.28%), Primary and Mass Education with Taka 16,135.52 crore (6.24%), Health Services Division with Tk 13,741.33 crore (5.31%), Ministry of Railways with Tk 13,725.64 crore (5.31 %), Ministry of Science and Technology with Tk 12,886.70 crore (4.98%), Secondary and Higher Education Division with Tk 11,387.69 crore (4.40%), Ministry of Shipping with Tk 10,373.45 crore (4.01%) and Ministry of Water Resources with Tk 8,687.09 crore (3.36%).

These 10 highest allocated ministries and divisions witnessed an overall allocation of Tk 1,86,965.43 crore or 71.88 percent of the overall ADP allocation against ministries and divisions.

The government has retained the tax-free income limit at Tk 3.5 lakh for individual taxpayers for the next fiscal.

This is the country’s 53rd budget and the 25th of the Awami League government in six terms. This budget is also the 21st under the rule of Prime Minister Sheikh Hasina in different terms.

Tajuddin Ahmad presented the country’s first budget as finance minister of the post-independence Bangabandhu government in 1972.

This budget for FY25 is the maiden budget of incumbent Finance Minister AH Mahmood Ali.