Only 50% of ADP Implemented in 10 Months

In the upcoming budget for the fiscal year 2023-24, the government plans to set aside Tk 1,000 crore to address the capital shortfall of state-owned commercial banks, even though no funds have been released for them in the past four fiscal years. The allocation is part of the recapitalization fund, intended to support the banks, but the finance ministry has not provided financing for them since FY19-20.

Finance Minister AHM Mustafa Kamal is set to present the budget for fiscal year 2023-24 (FY24) on June 1, with a focus on building a smart Bangladesh, creating jobs, and addressing the challenges of the fourth industrial revolution (4IR). The budget, estimated at Tk 7,61,785 crore, will be guided by the theme "Unnayner Agrayatra Periye Smart Bangladesher Abhimukhe" (Towards Progress for a Smart Bangladesh).

The government's allocation for social safety net programs is expected to see minimal growth in the next fiscal year, despite the challenges faced by low-income individuals due to soaring inflation. According to a finance ministry draft plan, social security programs are projected to receive around Tk 1.2 lakh crore, accounting for approximately 15.76 percent of the Tk 7.61 lakh crore budget for 2023-24.

Over the past seven years, this expense has almost tripled. In the budget announcement for the fiscal year 2022-23, a proposal was made to allocate Tk 80,375 crore for interest payments. This expense will increase to Tk 1,02,376 crore in the coming fiscal year. As a result, the government's expenditure on various loans has increased by Tk 19,100 crore in just one year.  The government has taken out a large amount of loans over the past decade for the development of the country's infrastructure.

Bangladesh and China are poised to join hands in the Beijing-sponsored Global Development Initiative (GDI), a significant development program aligned with China's Belt and Road Initiative (BRI). The Chinese government has shared the final draft of the memorandum of understanding (MoU) on the GDI with Bangladesh for feedback and confirmation. The proposed partnership aims to elevate the strategic cooperative partnership between China and Bangladesh, leveraging Chinese grants, interest-free loans, concessional loans, and development funds.

Bangladesh's public expenditure is failing to keep up with the country's expanding economy, hampering the implementation of development programs and the provision of expected services. In the fiscal year 2021-22, public expenditure accounted for 13.05% of the GDP, totaling Tk 518,191 crore. The government's target expenditure for the current fiscal year is Tk 678,064 crore, but sluggish execution of the Annual Development Programme (ADP) may hinder reaching this goal.