Government budget spending in the first 11 months of fiscal year 2023 fell below expectations, primarily due to underwhelming development expenditure. Official figures reveal that spending reached 64% of the total revised estimate, largely attributed to non-development expenses. However, this rate marks a 5% improvement from the same period in the previous year.
The revised estimate for FY23 was Tk 6.60 trillion, 2.6% lower than the original budget. Total spending during this period amounted to Tk 4.25 trillion, with non-development spending representing 74.5% of the revised estimate. Interest payments, subsidies, and food account expenditures contributed to the increased non-development spending. In contrast, development expenditure, including the annual development program (ADP), lagged significantly behind, reaching less than 50% of the allocated budget.
Tax revenue collection exceeded 73% of the revised target, while non-tax revenue reached 74% of the annual goal. Foreign grants remained low, receiving only 14% of the estimated budget. The overall balance, excluding grants, stood at a negative 2.41% of GDP.
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