Every Fiscal Year One-Third of Budget Not Executed

Economic Tag: Govt.

Every year, by mid-fiscal year, budget implementation is often dismal, with even one-third of the budget sometimes not executed, necessitating revisions. Despite these amendments, the budget remains partially unimplemented each year. The primary reasons are twofold: first, the government consistently fails to meet its revenue collection targets, falling short by 14 to 30% over the past decade; second, 15 to 20% of development expenditures remain unspent annually.

From 2009-10 to 2022-23, an average of 15 to 20% of the budget was not implemented. The worst implementation occurred in FY 2016-17, with only 79% executed, while the best was in FY 2010-11, with a 97% implementation rate. The gap between proposed and actual budget implementation has widened, particularly since FY 2012-13 when the budget first exceeded Tk 2 lakh crore but only 84.59% was executed.

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