Bangladesh Finance minister unveils Tk 761,785cr national budget

[Homo Sapiens]

Finance minister unveils Tk 761,785cr national budget​

BI Report || BusinessInsider
Published: 16:34, 1 June 2023 Update: 16:41, 1 June 2023

Photo: Representational

Finance Minister AHM Mustafa Kamal has unveiled the national budget of Tk 761,785 crore for the fiscal 2023–24 with an aim to build a hunger- and poverty-free, knowledge-based and developed 'Smart Bangladesh' by 2041.

The budget size for FY24 is estimated at Tk 7, 61, 785 crore, which is 15.2 percent of the GDP, Kamal said while placing the budget speech at Jatiya Sangsad on Thursday.

This is the 5th consecutive budget presented by AHM Mustafa Kamal and last of the current Awami League government.
Kamal wearing a traditional Panjabi and Pajama with a black ‘Mujib coat’ started placing his 248-page budget speech featuring power-point presentation just after 3:00 pm in presence of the leader of the house and Prime Minister Sheikh Hasina.

The budget focuses on driving the country on an incremental economic-growth matching Bangladesh’s LDC-graduation route and fulfilling the conditions of the International Monetary Fund (IMF) for a loan of $4.7 billion.

Of the total proposed budget, Tk 475,281 crore is allocated for operating expenditures, and the rest, Tk 277,582 crore, for development purposes.

The total revenue earnings target was set at Tk 5 lakh crore, of which, the National Board of Revenue (NBR) will collect Tk 4.30 lakh crore, and the rest will be collected from other sources.

The proposed budget’s overall deficit, including grants, will be Tk 257,885 crore, which is 5.2 percent of the GDP.
The inflation target is set to 6.5 percent though the current inflation rate is over 9 percent.

Finance minister unveils Tk 761,785cr national budget

Finance Minister AHM Mustafa Kamal unveiled the national budget of Tk 761,785 crore for the fiscal year 2023–24 at Jatiya Sangsad on Thursday.

www.businessinsiderbd.com

 

[protean]

Even Uttar Pradesh has come out with 7 trillion rupee budget this year. And it has better revenue collections than Bangladesh and it doesn't have to deal with defence, currency, roads and highways and other central issues from it's budget. Uttar Pradesh consumption too is higher than Bangladesh. It is going to interesting to see Bangladesh compete against Uttar Pradesh going forward.

Uttar Pradesh Budget Analysis 2023-24

 

[VikingRaider]

Unsmart budget in smart Bangladesh ( headline ) !

 

[Homo Sapiens]

Even Uttar Pradesh has come out with 7 trillion rupee budget this year. And it has better revenue collections than Bangladesh and it doesn't have to deal with defence, currency, roads and highways and other central issues from it's budget. Uttar Pradesh consumption too is higher than Bangladesh. It is going to interesting to see Bangladesh compete against Uttar Pradesh going forward.

Uttar Pradesh Budget Analysis 2023-24

India's revenue collection is 20 percent of it's GDP, for Bangladesh, it is only 9%. This is the single biggest reason.

Second, Uttar Pradesh, as the most populous and 2nd poorest BIMARU state, get a huge Central govt. assistance in it's budget. It's state budget is even bigger than Maharashtra(the largest state economy in India). Out of Uttar Pradesh's 6.9 trillion Rupee budget this year, 3 trillion Rupee will be provided by Central Govt as a share of Central tax revenue and grants.

Uttar Pradesh Budget Analysis 2023-24

I hope you will now understand the difference.

 

[protean]

India's revenue collection is 20 percent of it's GDP, for Bangladesh, it is only 9%. This is the single biggest reason.

Second, Uttar Pradesh, as the most populous and 2nd poorest BIMARU state, get a huge Central govt. assistance in it's budget. It's state budget is even bigger than Maharashtra(the largest state economy in India). Out of Uttar Pradesh's 6.9 trillion Rupee budget this year, 3 trillion Rupee will be provided by Central Govt as a share of Central tax revenue and grants.

Uttar Pradesh Budget Analysis 2023-24

I hope you will now understand the difference.

But how does it matter? A part of central's revenue is distributed among all the states based on a formula not just Uttar Pradesh. It might be receiving more given the population and income distance involved. Anyways India central government spends 45 trillion rupees per it's budget not including this. At the end of the day, Uttar Pradesh has 6.9 trillion (9 trillion taka) to spend on its development without having to worry about defence, foreign affairs, currency, railways, national highways etc. Do you contest that? Effectively it could be worth over 12 trillion taka if everything is taken into consideration. And It has come up with so many expressways lately that it is only a matter of time it becomes a key manufacturing state in India.

The economy of Uttar Pradesh is the third largest of all the states in India. The Nominal GDP of this state is ₹24.39 lakh crore (US$310 billion) in 2022-23. The minister said that there has been a 16.8% increase in state GDP in the year 2022-23. The GSDP growth has been estimated at 19% for 2023-24.

Looking at the stats, it is clear that Uttar Pradesh will beat out Bangladesh soon. So I find it interesting to see how Bangladesh will compete in the coming years.

And please your GDP numbers are untrustworthy. And your budget numbers are always revised downwards by 20% when they publish the actual numbers. Your country missed the budgeted revenue collections 11th time in a row this year. So don't mind if I take your glorified Bangladesh narrative with a pinch of salt.

 

[Bilal9]

But how does it matter? A part of central's revenue is distributed among all the states based on a formula not just Uttar Pradesh. It might be receiving more given the population and income distance involved. Anyways India central government spends 45 trillion rupees per it's budget not including this. At the end of the day, Uttar Pradesh has 6.9 trillion (9 trillion taka) to spend on its development without having to worry about defence, foreign affairs, currency, railways, national highways etc. Do you contest that? Effectively it could be worth over 12 trillion taka if everything is taken into consideration. And It has come up with so many expressways lately that it is only a matter of time it becomes a key manufacturing state in India.

The economy of Uttar Pradesh is the third largest of all the states in India. The Nominal GDP of this state is ₹24.39 lakh crore (US$310 billion) in 2022-23. The minister said that there has been a 16.8% increase in state GDP in the year 2022-23. The GSDP growth has been estimated at 19% for 2023-24.

Looking at the stats, it is clear that Uttar Pradesh will beat out Bangladesh soon. So I find it interesting to see how Bangladesh will compete in the coming years.

And please your GDP numbers are untrustworthy. And your budget numbers are always revised downwards by 20% when they publish the actual numbers. Your country missed the projected revenue collections 11th time in a row this year. So don't mind if I take your glorified Bangladesh narrative with a pinch of salt.

Indian bhakts are far more adept at budgetary numbers voodoo and black magic than Bangladesh will ever be.

Bhakts have their agents at IMF (Gita Gopinath) and all other economic thinktanks too.

Even then the propaganda does not hold water.....

UP is a DOMESTIC CONSUMPTION based economy.

Bangladesh is largely an EXPORT ORIENTED economy. Much more so than UP. Do you understand what that means?


But your UP Dharmic empire has definitely got Bangladesh beat on one sector, Paan Masaala and Ghutka Industry and consumption.

That alone we cannot compete with, forget others.

Jokes aside - here is what IBEF (and MOSPI) says (if you don't believe them then suit yourself),

• UP's GDP at Current Prices in FY2022-23 was $249 Billion
• Bangladesh GDP at Current Prices WAS $416 Billion in 2021 (reported in 2022), and it is expected to touch $500 Billion soon this year or next year.
• Source (https://take-profit.org/en/statistics/gdp/bangladesh/)
• In FY2023 (until August 2022), the total exports from UP stood at US$ 696.28 million (https://www.ibef.org/states/uttar-pradesh-presentation)
• Bangladesh exports in that same year is shown month by month below also in millions.
• Bangladesh exported more in some two months than UP does in a whole year...
• 

Ab Samjha Karo.

 

[protean]

Indian bhakts are far more adept at budgetary numbers voodoo and black magic than Bangladesh will ever be.

UP is a DOMESTIC CONSUMPTION based economy.

Bangladesh is largely an EXPORT ORIENTED economy. Much more so than UP.

But your UP Dharmic empire has definitely got Bangladesh beat on one sector, Paan Masaala and Ghutka Industry and consumption.

That alone we cannot compete with, forget others.

UP is a land locked state unlike Bangladesh. It is not an LDC to game the chaddi stitching ecosystem. We'll see who beats out who in the coming years. It had built 2000 kms of expressways without having to take China's money or help. With Apple and Samsung taking their factories there, we'll see how long lungi land keeps ahead in exports as well.

U.P. govt working on war footing for groundbreaking ceremony

The state government received investment proposals of ₹35 lakh crore through the Global Investors’ Summit held in Lucknow in February

www.google.com

 

[Homo Sapiens]

But how does it matter? A part of central's revenue is distributed among all the states based on a formula not just Uttar Pradesh. It might be receiving more given the population and income distance involved. Anyways India central government spends 45 trillion rupees per it's budget not including this. At the end of the day, Uttar Pradesh has 6.9 trillion (9 trillion taka) to spend on its development without having to worry about defence, foreign affairs, currency, railways, national highways etc. Do you contest that? Effectively it could be worth over 12 trillion taka if everything is taken into consideration. And It has come up with so many expressways lately that it is only a matter of time it becomes a key manufacturing state in India.

As I have said, Bangladesh's revenue collection is just 9% of GDP while it is more than double, 20% of GDP in case of India. For India's case, 60% of total national revenue is collected by central govt. and 40% by states. A portion of Central govt. revenue than latter distributed among the states.

Bangladesh govt. is a low earning, low spending govt. For the first 40 years of it's existence as an independent country, only big infrastructure project was a 4.8 km bridge in Jamuna river. Currently, a number of big infrastructure projects is under-construction, but mostly with foreign loans. There are historical reasons as well as deliberate govt. policy and corruption for low revenue generation capacity in Bangladesh.

1. For historical reason, East Bengal and later Bangladesh had low revenue potential. At the time of partition in 1947, it had no big urban center, no port, no industries, no tax paying merchants and affluent middle class people. All of these things gone to West Bengal and India. Entire East Bengal was a rural peasant society with very few taxable person and entities. By comparison, India got almost all the revenue generating institutions, few got by West Pakistan but almost none by East Bengal. After Independence in 1971, the country was in ruin, govt. was heavily dependent on foreign aid for delivering budget. It hampered efficient tax revenue eco-system to develop. But India inherited a developed base of revenue collection sources and worked to enhance it, as such a vast country can not be dependent on foreign aids for it's need. So the trajectory of two countries were radically different when it comes to developing revenue collection capacity and budget spending.

2. Currently Bangladesh govt. provide tax weavers for various industries and institutions as big an amount as it's collection of tax revenue. For India, tax weavers is not as pervasive as Bangladesh.

3. Tax revenue collection in Bangladesh is very inefficient and corrupt. Only 1% people in Bangladesh give income tax. Most of the revenue is generated by indirect method which impose burden to all irrespective of economic status of the common people. Most of the rich in Bangladesh dodge tax through corruption and manipulation.

And please your GDP numbers are untrustworthy. And your budget numbers are always revised downwards by 20% when they publish the actual numbers. Your country missed the budgeted revenue collections 11th time in a row this year. So don't mind if I take your glorified Bangladesh narrative with a pinch of salt.

There was never a glorified Bangladesh narrative from Bangladesh in general. It was a hype created by Indian media after Rahul Gandhi's tweet. Some BAL politicians in Bangladesh also swayed by such favorable foreign media depiction of their rules and parroted those hype.

But common people and economists in Bangladesh were never mislead by such hype. Economist in Bangladesh always warned about the underlying vulnerabilities of Bangladesh's economy. You only have to blame your Indian media(mainstream and social) for creating a shitstorm and mud-sliding about 'Bangladesh surpassing India' after Rahul Gandhi and some other Indian economist's tweet.

 

[bluesky]

UP is a land locked state unlike Bangladesh. It is not an LDC to game the chaddi stitching ecosystem. We'll see who beats out who in the coming years. It had built 2000 kms of expressways without having to take China's money or help. With Apple and Samsung taking their factories there, we'll see how long lungi land keeps ahead in exports as well.

U.P. govt working on war footing for groundbreaking ceremony

The state government received investment proposals of ₹35 lakh crore through the Global Investors’ Summit held in Lucknow in February

www.google.com

But, which Indian states have barred UP from using sea ports located there.

Do not please bit about the bush. Why do you compare oranges with apples?

 

[protean]

As I have said, Bangladesh's revenue collection is just 9% of GDP while it is more than double, 20% of GDP in case of India. For India's case, 60% of total national revenue is collected by central govt. and 40% by states. A portion of Central govt. revenue than latter distributed among the states.

Bangladesh govt. is a low earning, low spending govt. For the first 40 years of it's existence as an independent country, only big infrastructure project was a 4.8 km bridge in Jamuna river. Currently, a number of big infrastructure projects is under-construction, but mostly with foreign loans. There are historical reasons as well as deliberate govt. policy and corruption for low revenue generation capacity in Bangladesh.

1. For historical reason, East Bengal and later Bangladesh had low revenue potential. At the time of partition in 1947, it had no big urban center, no port, no industries, no tax paying merchants and affluent middle class people. All of these things gone to West Bengal and India. Entire East Bengal was a rural peasant society with very few taxable person and entities. By comparison, India got almost all the revenue generating institutions, few got by West Pakistan but almost none by East Bengal. After Independence in 1971, the country was in ruin, govt. was heavily dependent on foreign aid for delivering budget. It hampered efficient tax revenue eco-system to develop. But India inherited a developed base of revenue collection sources and worked to enhance it, as such a vast country can not be dependent on foreign aids for it's need. So the trajectory of two countries were radically different when it comes to developing revenue collection capacity and budget spending.

2. Currently Bangladesh govt. provide tax weavers for various industries and institutions as big an amount as it's collection of tax revenue. For India, tax weavers is not as pervasive as Bangladesh.

3. Tax revenue collection in Bangladesh is very inefficient and corrupt. Only 1% people in Bangladesh give income tax. Most of the revenue is generated by indirect method which impose burden to all irrespective of economic status of the common people. Most of the rich in Bangladesh dodge tax through corruption and manipulation.

There was never a glorified Bangladesh narrative from Bangladesh in general. It was a hype created by Indian media after Rahul Gandhi's tweet. Some BAL politicians in Bangladesh also swayed by such favorable foreign media depiction of their rules and parroted those hype.
But common people and economists in Bangladesh were never mislead by such hype. Economist in Bangladesh always warned about the underlying vulnerability of Bangladesh's economy. You only have to blame your Indian media(mainstream and social) for creating a shitstorm and mud-sliding about 'Bangladesh surpassing India' after Rahul Gandhi and some other Indian economist's tweet.

How does all this negate my point that Bangladesh will be competing with Uttar Pradesh? Uttar Pradesh still has 9 trillion taka to spend and a lot of investment coming in. For your second part may be you have to inform @Bilal9 about Bangladesh's position.

 

[Homo Sapiens]

How does all this negate my point that Bangladesh will be competing with Uttar Pradesh? Uttar Pradesh still has 9 trillion taka to spend and a lot of investment coming in. For your second part may be you have to inform @Bilal9 about Bangladesh's position.

Govt. spending is not the only driver of economy. Poor Uttar Pradesh's big budget only indicate that, it is heavily dependent on Central assistance and govt. spending to propel it's economy.

Bangladesh's socio-economic parameter is comparable with Indian average. It is much better than 2nd poorest state in India, Uttar Pradesh. Bangladesh's per capita GDP in Purchasing Power Parity(PPP) and market exchange rate is at neck to neck with India. While UP has half of the Indian average per capita GDP. Most of the social development parameter of Bangladesh is better than India, while UP is much worse than Indian average. Constructing some expressways does not mean, it is surpassing Bangladesh in overall development. Road infrastructure spending constitute just 1 percent of GDP in Bangladesh and 2% of GDP in India.

 

[protean]

Govt. spending is not the only driver of economy. Poor Uttar Pradesh's big budget only indicate that, it is heavily dependent on Central assistance and govt. spending to propel it's economy.

Bangladesh's socio-economic parameter is comparable with Indian average. It is much better than 2nd poorest state in India, Uttar Pradesh. Bangladesh's per capita GDP in Purchasing Power Parity(PPP) and market exchange rate is at neck to neck with India. While UP has half of the Indian average per capita GDP. Most of the social development parameter of Bangladesh is better than India, while UP is much worse than Indian average. Constructing some expressways does not mean, it is surpassing Bangladesh in overall development. Road infrastructure spending constitute just 1 percent of GDP in Bangladesh and 2% of GDP in India

I am contesting your GDP and per capita numbers given how small your consumption is. Given UP collects more tax than Bangladesh makes me think it's GDP is actually bigger than Bangladesh. Wait till IMF finishes its work, all the realities will come out.

 

[Homo Sapiens]

I am contesting your GDP and per capita numbers given how small your consumption is. Given UP collects more tax than Bangladesh makes me think it's GDP is actually bigger than Bangladesh. Wait till IMF finishes its work, all the realities will come out.

What consumption you are talking about? Bangladesh's nominal GDP can not be less than 400 billion Dollar, otherwise, all other economic data, indicators will not match up. GDP is not some random number you can inflate without anyone noticing. There are agricultural production statistics, industrial production statistics, service sector statistics, Household expenditure surveys, Demographic and health surveys, Export-Import statistics, Forex reserves, Govt. spending and many other things to make sense of GDP figure. Largescale discrepency is not possible. Bangladesh is not North Korea, all it's data are open to IMF, World Bank to scrutinize. If it had largescale irregularity, then those global institutions would not have published Bangladesh's data, just like IMF do not publish data of North Korea, Cuba, Afghanistan etc. You should come out with concrete evidence of discrepency between GDP figure and other metrics, not some sweeping statement.

UP's own tax collection is less than Bangladesh, it's revenue only goes above after getting Central funds.

 

[protean]

What consumption you are talking about? Bangladesh's nominal GDP can not be less than 400 billion Dollar, otherwise, all other economic data, indicators will not match up. GDP is not some random number you can inflate without anyone noticing. There are agricultural production statistics, industrial production statistics, service sector statistics, Household expenditure surveys, Demographic and health surveys, Export-Import statistics, Forex reserves, Govt. spending and many other things to make sense of GDP figure. Largescale discrepency is not possible. Bangladesh is not North Korea, all it's data are open to IMF, World Bank to scrutinize. If it had largescale irregularity, then those global institutions would not have published Bangladesh's data, just like IMF do not publish data of North Korea, Cuba, Afghanistan etc. You should come out with concrete evidence of discrepency between GDP figure and other metrics, not some sweeping statement.

UP's own tax collection is less than Bangladesh, it's revenue only goes above after getting Central funds.

UP own tax revenue would be more than Bangladesh if there was no central taxation on its citizens. They have share in all the GST, income taxes and custom taxes as they are mainly collected by Central government, hence the devolution. However, at the end of the day they still have 9 trillion taka to spend for themselves and have their priorities sorted lately. I still don't understand how having higher revenues to spend is bad for UP.

GDP is a composition of consumption, investment, government spending and net exports. In consumption and investment UP will beat Bangladesh shortly if not already. Government spending is where UP will take a huge lead going forward. Net exports is where it will still need to work on. Here is where infrastructure will help them.

There is a lot of discrepancy with Bangladesh's data which was so far neglected as IMF didn't have mechanism to verify Bangladesh's statistics. They were taking them at the face value. Your budget is hyped by 20% and IMF will simply report the your revenue projection as true projection without validating them. And it is revised downward later without corrections. For example NBR revenue projection for next year is increased to 4.3 trillion when it couldn't even reach 3.7 trillion they set for this year (3.2 is expected). No country does this kind of over estimations and under deliver. Budgets are supposed be somewhat precise projections of revenue and expenditure but in Bangladesh, they are tool to glorify GOB incompetence. India and most countries revise upward their revenue projections mid year and yet exceed even the revised estimations.

Like we saw with forex reserves, IMF will find out what is your true GDP since now you are in their loan plan. We can agree to disagree here but I foresee a Pakistan like situation going forward.

Ambitious revenue target for FY24

The revenue growth target for the next fiscal year is set at around 15%, while the actual revenue growth in the outgoing fiscal year was around 7%. Economists said the target was unrealistic and there will be a huge deficit in fulfilling the target by the end of the upcoming fiscal year. In the...

www.tbsnews.net

 

[Homo Sapiens]

UP own tax revenue would be more than Bangladesh if there was no central taxation on its citizens. They have share in all the GST, income taxes and custom taxes as they are mainly collected by Central government, hence the devolution. However, they still have 9 trillion taka to spend for themselves and have their priorities sorted lately. I still don't understand having higher revenues to spend is bad for UP.

Most of India's central govt. tax revenue comes from economically better off states, not from states like UP, Bihar etc. Bulk of Central govt. tax revenue is collected from five Southern states, Maharashtra, Gujarat, Haryana and Delhi. So, even if all the tax were collected by states by themselves, still I don't think UP could have surpassed Bangladesh in tax collection yet. But overall India has twice the tax GDP ratio of Bangladesh, this is even true in places like UP. So it would have come close to Bangladesh figure may be. I have read somewhere that Southern states give the center around 170-180 Rupee for every 100 Rupee it get, while Bihar, UP give just 30-40 Rupee for every 100 Rupees they get in return from Center. So, there is no way UP's tax revenue is greater than Bangladesh.