The New Nation - Internet Edition

Staff Reporter

With giving importance on agriculture and rural infrastructure the budget outlay for the next fiscal year would be around Tk 99,500 crore, Finance Adviser Dr Mirza Azizul Islam disclosed Monday.

"Deficit in the 2008-09 budget may widen but not beyond 5 per cent of Gross Domestic Product (GDP). The budget will be placed on June 8 or 9," he told reporters on the sidelines of a seminar on Privatisation at a city hotel.

Disclosing the facts and figures relating to the budget outlay the Finance Adviser said the Annual Development Programme (ADP) would be around Tk 25,500 crore in FY09 as compared to the revised budget of Tk 22,500 crore for the current fiscal year.

The Adviser informed newsmen that tax rates would no be increased, moreover, few cases of domestic output could get some protection. "The existing subsidies would continue in the next fiscal year like those in petroleum products and fertiliser, the Adviser said.

Replying to another question, Dr Aziz said the budget deficit would increase next year, but it would remain within 5 per cent of GDP. The overall deficit for the outgoing fiscal has been estimated at 4.2 per cent.

He said the revised budget would increase significantly than the original allocation due to increased subsidies on petroleum products and fertiliser well as increased food imports.

The total budgetary outlay for the outgoing fiscal was Tk 87,137 crore.

Dr Aziz said the external assistance increased significantly. Revenue collection also increased substantially.

He, however, remained skeptical about the aid inflow during the next fiscal year, for which he is waiting to present his second budget during the tenure of the caretaker government.

"The donors may prefer to go for wait and see strategy as the election will be held in December," he said, adding that the main donors are unlikely to wait for the elections.

Meanwhile, officials indicated that revenue earnings is estimated to grow by 17 per cent in the next fiscal year as compared to the target of the outgoing fiscal year, with the authorities busy in preparing the budget for 2008-09.

The revenue target is being considered not much commensurate with the estimates of nominal GDP and inflation that aggregates 15.5 percent.

The revenue target for the current fiscal year was fixed at Tk 43,850 crore, while the earnings during the July-March period stood at Tk 31,300 crore, registering 24 per cent growth over the corresponding period of the previous fiscal and 70 percent of the total target.

Authorities expected that the revenue earnings of the current fiscal year are likely to exceed the target for the first time.