Premier University

Subject: Public Finance

Topic: Budget Analysis and Deficit Financing

Submitted To-
Name: Rajib Datta
Assistant Professor of Finance Discipline
Faculty of Business Studies
Premier University.

Submitted By-
Name ID.
Md. Fahad Hossain 2103420804170
Atiqur Rahman 2103420804169
Shahadat Rahim Sajjad 2103420804167
Sipen Chakma 2103420804130
Department of Finance
Section: ‘A’
Faculty of Business Studies
Premier University

1
Table of Contents
Abstract .............................................................................................................................................4
Chapter One ......................................................................................................................................5
1. INTRODUCTION ..................................................................................................................................... 5
1.1 History of Budget ................................................................................................................................ 5
1.2 History of Bangladesh Budget ............................................................................................................. 5
1.3 What is budget? .................................................................................................................................. 6
1.4 Types of Budgets ................................................................................................................................. 6
1.4.2 Unbalanced Budget ...................................................................................................................... 7
1.4.3 Surplus Budget ............................................................................................................................. 7
1.4.4 Deficit Budget............................................................................................................................... 7
[Link] Purposes of Deficit Financing .................................................................................................... 7
1.5 Objectives of the study ....................................................................................................................... 8
Chapter Two ......................................................................................................................................9
2.1 Literature Review ................................................................................................................................ 9
2.2 Research methodology: ...................................................................................................................... 9
Chapter Three .................................................................................................................................. 11
3.1 What Causes a Budget Deficit? ......................................................................................................... 11
3.2 Effects of a Budget Deficit ................................................................................................................. 11
3.3 Strategies to Reduce Budget Deficits ................................................................................................ 12
3.4 What is fiscal policy? ......................................................................................................................... 12
3.5 Types of fiscal policy in economics ................................................................................................... 12
3.5.1 Expansionary fiscal policy .......................................................................................................... 12
3.5.2 Contractionary fiscal policy ........................................................................................................ 13
3.5.3 Role of Budget for Effective Administration in Bangladesh ....................................................... 13
Chapter Four .................................................................................................................................... 14
Findings and Discussion .......................................................................................................................... 14
4.1Construct of the Budget ..................................................................................................................... 14
4.2 Composition of Expenditure ............................................................................................................. 14
4. 3 Changes in Sector ............................................................................................................................. 17
4.4 Sector-wise allocation of ADP ........................................................................................................... 19
4.5 Sources for Financing ........................................................................................................................ 19

2
 4.6 Budget, Revenue and Deficits ........................................................................................................... 21
4.7 Summary of Findings......................................................................................................................... 22
Chapter Five .................................................................................................................................... 23
5.1 Conclusion ......................................................................................................................................... 23
References....................................................................................................................................... 24

3
 Abstract
Budget deficit is one of the most significant macroeconomic issues which have been debated both in the
academic and political arena since 1970s. This study aims to explore the current position of government
budget deficit, its trends, and sources of budget deficit financing in Bangladesh. Secondary data has been
used which was collected from the Bangladesh Economic Review and the World Bank etc. Data has been
analyzed through trend analysis. The Government financing budget deficit from two sources like domestic
and foreign sources. The study finds that Government finances most of its budget deficit from the
domestic sources than foreign sources especially from non-banks sources due to the increase in the net
sale of national savings certificates while borrowing from bank sources is on the decline. Along with the
effective measures of generating more internal resources, the government should also focus on other
areas to reduce the budget deficit. The government should be taking the appropriate steps to make
progressively investable resources and generate a fund for financing the non-development spending in
reducing the reliance on debt that can guarantee more distribution on the development sector.

4
 Chapter One

1. INTRODUCTION
"A national debt, if it is not excessive, will be to us a national blessing."

-Alexander Hamilton

A budget deficit occurs when expenditures surpass revenue and then up impacting the financial health of
a country. The term budget deficit is generally used when talking about total economic spending rather
than the budget of businesses or individuals. National debt is made of the accrued deficits in budget. The
economy of Bangladesh is currently going through a period of continuous budget deficit. The term budget
deficit usually applies to governments in a situation when spending exceeds income and urges the
government either to print more money, to levy more tax, or to borrow from the public to finance this
deficit.

1.1 History of Budget

In historical terms, Budget is a relatively new invention. Its origins, however, lie in centuries of monarchs
mismanaging the country's finances.

It was not until the early 18th century that a version of the annual Budget emerged. The origins of the
word Budget lie in the term "bougette" - a wallet in which documents or money could be kept. While at
first referring only to the Chancellor's annual speech on the country's finances, the word quickly became
used for any financial statement or plan.

The beginnings of what we have come to know as the Budget did not immediately act as a complete
safeguard for Britain's finances. The bursting of the South Sea Bubble in 1720, for example, wrecked the
country's balance sheet and led to the imprisonment of the Chancellor in the Tower of London. Toward
the end of the same century, in 1789, Pitt the Younger introduced income tax.

Budget Day has historically been held during spring because the collection of the Land Tax took place in
April, and much of the country's wealth derived from agriculture.

1.2 History of Bangladesh Budget

First financial budget of the fiscal year 1972-73 was proposed by Tajuddin Ahmed (first Finance and

planning minister of Bangladesh) on 7th July 1972. There was no deficit in the budget rather there was

surplus in the first fiscal budget of newly independent Bangladesh. There were no new taxes in the budget;

5
which was one of the most significant aspects the first budget. Total amount of expenditures in the budget

is 501 crore Bangladeshi taka. Total surplus in the budget is 66.95 crore Bangladeshi taka. Total amount

of taka 317 crore was allocated for the development projects all over the country. Total amount of foreign

aid was taka 375 crore.

Since then, eleven finance minister placed 45 budgets. Finance minister AMA Muhith announces the
country's 44th budget, for the financial year 2015-16 in parliament on Thursday.

1.3 What is budget?

A budget is a quantitative expression of a plan for a defined period of time. It may include planned sales
volumes and revenues, resource quantities, costs and expenses, strategic plans of business units,
organizations, activities or events in measurable assets, liabilities and cash flows.

1.4 Types of Budgets

Different types of Government Budget

6
1.4.1 Balanced Budget
A balanced budget is a situation in financial planning or the budgeting process where total expected
revenues are equal to total planned spending. This term is most frequently applied to public sector
(government) budgeting. A budget can also be considered balanced in hindsight after a full year's worth
of revenues and expenses have been incurred and recorded.

1.4.2 Unbalanced Budget

The budget in which income and expenditure are not equal to each other is known as Unbalanced Budget.
Unbalanced Budget is of two types:

1.4.3 Surplus Budget

A surplus budget is a condition when incomes or receipts overreach costs or outlays (expenditures). A
surplus budget normally refers to the financial conditions of the governments. However, individuals
choose to use the term ‘savings’ rather than ‘budget surplus.’ Surplus is a manifestation that the
government is being effectively operated and regulated.

1.4.4 Deficit Budget

A deficit budget is said to have occurred when expenses exceed the revenue and it is a symptom of
financial health. The government normally uses this term to its spending instead of entities or individuals.
Accrued government deficits form the national debt.

[Link] Purposes of Deficit Financing

✓ To overcome the problem of lack of funds for speeding up the country's development.
✓ Promote additional investment in the country to side away the adverse impacts of
depression period of the country.
✓ To arrange fund for ensuring the holistic development of the country.
✓ To arrange fund for the unforeseen events and arrange resources for wartime
expenditure.
✓ To upgrade the infrastructure of the country so that the taxpayers of
the country are convinced that the tax paid by them is spent on the
right things.
When a budget deficit is documented, it means that the total current expenses are more than the amount
of income generated by the country through regular operations. A country that wants to improve the
budget deficit will have to scale down specific expenses, boost their revenue-generating activities, or even
turn to a combination of the two. The opposite of a budget deficit is a budget surplus. In this case, revenue

7
is more than the total current expenses and this leads to excess funds that can be used by the country as
desired. In situations in which the inflows equal to the outflows, the budget is balanced.

One of the chief hazards of a deficit in budget is inflation. This refers to the growth of the price levels of
different goods. Continued budget deficits can also lead to inflationary monetary policies, year after year.

Over the years, Bangladesh has experienced continuous budget deficits and rising debt levels
accompanied by a fall in revenue sources. Even though the economy is growing, there is a slow-down
within the growth because of increasing government expenditure relative to the revenue. Therefore, the
financing of budget deficit requires more borrowing and external credits, because the collection of
revenue is slower as opposed to total expenditure. There are various causes of budget deficits. The
foremost being when the actual revenues collected fall short of the projected amount. This may be
attributed to low economic performance affecting the power of the government to gather enough. The
other causes may be due to the alters in weather outlook that suppresses the productivity of an economy,
the uncertainty that dampens the travel industry, outer elements like the worldwide emergency that
reduces the private and public speculations, catastrophic events like dry spells, floods, and tropical storms
that demolish resources and hamper economic functions.

1.5 Objectives of the study

➢ To focus on the effect of budget deficit the economic growth of
Bangladesh
➢ To show the individual relationship of budget deficit with some selected
macroeconomic indicators of Bangladesh.
➢ To show the trend of the change of budget deficit with some selected macroeconomic
indicators of Bangladesh.
➢ To analyze the present scenario of the budget deficit in Bangladesh
➢ To investigate the various methods used by the Government of Bangladesh to finance
the budget deficit.

8
 Chapter Two

2.1 Literature Review

Ahmed (2019) analyzed the causes and cures of the budget deficit in Bangladesh established that the
implementation of the budget generally relied upon the proper mobilization of domestic resources such
as the tax revenue collection both from the sources of direct, and indirect taxes. But the tax revenue
collection had not reached the expected level in Bangladesh. To decrease the budget deficit, the
government should take efficient and appropriate measures of creating more domestic resources.
Simultaneously to escape the shortage of the budget, the legislature should undertake steps to diminish
public spending. Lamichhane (2018) examined the source of budget deficit financing in Finland. This study
demonstrated that in financing the government budget deficit, the contribution of economic growth was
significant. Raising employment, increasing investment and exports, expenditure on education,
empowering, and making development indicates a positive driver in restoring economic growth.
Moreover, the aggregated obligation will leave an enduring blemish on the economy as it occured in the
Finnish economy. Therefore, the study asserted that economic growth is simply the best financing solution
to the ‘manageability hole’. Impacts of budget shortfall was found from the contextual analysis which
were abundant, an ascent in joblessness, decline in standard of living, increment in charge, increment in
private sparing, a decline in public sparing, increment of owing debtors, and an increase in the financing
cost. economic growth was significant. Raising employment, increasing investment and exports,
expenditure on education, empowering, and making development indicates a positive driver in restoring
economic growth. Moreover, the aggregated obligation will leave an enduring blemish on the economy
as it occurred in the Finnish economy. Therefore, the study asserted that economic growth is simply the
best financing solution to the ‘manageability hole’. Impacts of budget shortfall was found from the
contextual analysis which were abundant, an ascent in joblessness, decline in standard of living, increment
in charge, increment in private sparing, a decline in public sparing, increment of owing debtors, and an
increase in the financing cost.

2.2 Research methodology:

The assignment has been done mainly based on secondary sources of data or information. Secondary data
has been collected from journals and websites. Data relating to the Ministry of Finance, Bangladesh
Planning Commission, World Bank Reports, Bangladesh Bank reports, Economic Survey of Bangladesh etc.
The data and information thus collected have been processed manually as well as through personal
computer. Statistical tools, namely, average; percentage, rank etc. have been used in the study. For the

9
study to show the post effect of budget deficit the following variables are selected as a dependent
variable.

1. GDP (at current market prices) (billion Taka)

2. Overall deficit (including grants)
3. Exchange rate (Taka/Dollar)
4. Investment
5. Domestic Savings
6 Net domestic financing
7 Domestic debt
8 Per capita GNI in current market price.
For all of the dependent variables budget deficit has been considered as an independent
variable.

10
 Chapter Three

3.1 What Causes a Budget Deficit?

Both levels of taxation and spending affect a government's budget deficit. Common
scenarios that create deficits by reducing revenue and increasing spending include:

✓ Tax structure that under taxes high-wage earners but overtaxes low-wage earners.
✓ Increased spending on programs like Social Security, Medicare, or military
spending.
✓ Increased government subsidies to targeted industries.
✓ Tax cuts that decrease revenue but provide corporations with funds to increase
employment.
✓ Low GDP, or gross domestic product, results in lower tax revenue.
Budget deficits may occur as a way to respond to certain unanticipated events and
policies, such as the increase in defense spending after the September 11 terror
attacks.

3.2 Effects of a Budget Deficit

Budget deficits affect individuals, businesses, and the overall economy. As the
government takes steps to improve the deficit, spending for programs such as Medicare
or Social Security may be curtailed. Improvements to infrastructure may also be
affected.
To increase revenue, tax hikes may occur for high-income earners or large corporations
which may affect their ability to invest in new business ventures or hire new
employees.
A looming concern of a budget deficit is inflation, which is the continuous increase of
price levels. In the United States, a budget deficit can cause the Federal Reserve to
release more money into the economy, which feeds inflation and continued budget
deficits can lead to inflationary monetary policies, year after year.

11
3.3 Strategies to Reduce Budget Deficits

Countries counter budget deficits by promoting economic growth through fiscal policies, such as reducing
government spending and increasing taxes. Determining the best strategies regarding which spending to
cut or whose taxes to raise are often widely debated.

To pay for government programs while operating under a deficit, the federal government borrows money
by selling U.S. Treasury bonds, bills, and other securities. This strategy carries the risk of devaluing the
nation’s currency, which can lead to hyperinflation.

Reduced regulations and lower corporate income taxes improve business confidence, stimulate further
employment, and promote economic growth leading to higher taxable profits and an increase in income
tax revenue.

3.4 What is fiscal policy?

Fiscal policy is one of the main pillars of government policy. It relies on John Maynard Keynes’ idea that
the government can influence economic performance by changing the level of government spending or
taxes. Fiscal policy uses government spending and taxes to regulate economic output.

3.5 Types of fiscal policy in economics

There are two main types of fiscal policy: expansionary and contractionary.

3.5.1 Expansionary fiscal policy

Expansionary fiscal policy, designed to stimulate the economy, is most often used during a recession,
times of high unemployment or other low periods of the business cycle. It entails the government
spending more money, lowering taxes or both. The goal of expansionary fiscal policy is to put more money
in the hands of consumers so they spend more to stimulate the economy. Explained in economic language,
the goal of expansionary fiscal policy is to bolster aggregate demand in cases when private demand has
decreased.

12
3.5.2 Contractionary fiscal policy
Contractionary fiscal policy is used to slow economic growth, such as when inflation is growing too rapidly.
The opposite of expansionary fiscal policy, contractionary fiscal policy raises taxes to cut spending. As
consumers pay more taxes, they have less money to spend, and economic stimulation and growth slow.

3.5.3 Role of Budget for Effective Administration in Bangladesh

We know that, Budgeting is the process of creating a plan to spend our money. This spending plan is called
a budget. Creating this spending plan allows we to determine in advance whether we will have enough
money to do the things we need to do or would like to do. Budgeting is simply balancing our expenses
with our income. If they don't balance and you spend more than we make, we will have a problem. Many
people don't realize that they spend more than they earn and slowly sink deeper into debt every year. So
every people should balance their expenses and income.

Budget play an important role for effective and good administration for any country especially developing
countries like Bangladesh. Now a question arises in my mind this is "How Budget Play an Important role
for Effective Administration in Bangladesh"?

I try to answer this properly. We know budget is important term for Bangladesh. Every year Bangladesh
passed the budget for next one year. If Budget properly implement in Bangladesh which help to create a
good and effective administration. I notify some sectors which are the main term to ensure good &
effective administration in Bangladesh Budget involve this sector directly or indirectly.
This are given below

1) Budget & Education sector

2) Budget & Heath sector

3) Budget & good governance;

4) Budget & infrastructure development.

Many terms of sectors develop by the budget. I think above this term are vital sectors which related with
budget and I this above this sector proved “How budget play and important role for the people of
Bangladesh.

13
 Chapter Four

Findings and Discussion

4.1Construct of the Budget
The national budget in essence is a delicate conceptualization of expense fields and revenue sources. In
the existing turbulent global economic context and our continuous import dependencies, this year’s
budget focused on a conservative expenditure plan and a push toward an ambitious revenue target.

4.2 Composition of Expenditure

Total public expenditure (BDT 6.78 trillion) has increased 14.2% from the previous budget. Sector-wise
segregation of expenditure shows that public services, education and technology, and transport and
communication have been the top three sectors just as it was in the previous budget. However, the
budgeted expenditures in these sectors increased by 21%, 14%, and 24% respectively from the revised
budget for 2021 – 22 [2]. Other than that, the agriculture sector now has been allocated 6.2% of total
expenditure and the health sector 5.4%. From the previous budget, these sectors have been allocated
20% and 14% more. In total, a 13% increase in the allocation has been earmarked for interest payment.
On the flip side, Social Security and Welfare have been allocated 5.5% of the total budget expenditure
with an increment of a meager 4.7%. Similarly, the Energy and Power sector has also seen a 6.3%
increment. Current and previous budgetary allocations for all sectors are given below.

Budget in
Budget in (2021-
SL NO Sectors (2022- Differences
2022)
2023)
1 Public expenditure 19.9 18.7 1.2
2 Education and technology 14.7 14.8 -0.1
Transport and
3 12 11.1 0.9
communication
4 Interest 11.9 12 -0.1
5 LGRD 6.6 7.2 -0.6
6 Agriculture 6.2 5.9 0.3
7 Defense Services 5.9 6.3 -0.4

14
8 Social Security and welfare 5.5 6 -0.5
9 Health 5.5 5.4 0.1
10 Public order and safety 4.6 4.9 -0.3
11 Energy and power 3.8 4.1 -0.3
12 Housing 1 1.2 -0.2
Recreation, Culture and
13 0.8 0.9 -0.1
Religion Affairs
Industrial and Economic
14 0.6 0.7 -0.1
services
Others (Memorandum
15 1 0.8 0.2
Item)

15
 25

20

15

10

0
Recrea Indust
Transp
Educat Social tion, rial Others
ort Defenc Public
public ion Securit Energy Cultur and (Mem
and Interes Agricul e order Housin
expen and LGRD y and Health and e and Econo orand
comm t ture Servic and g
diture techno welfar power Religio mic um
unicati es safety
logy e n service Item)
on
Affairs s
Budger (2022-2023) 19.9 14.7 12 11.9 6.6 6.2 5.9 5.5 5.5 4.6 3.8 1 0.8 0.6 1
Budget (2021-2022) 18.7 14.8 11.1 12 7.2 5.9 6.3 6 5.4 4.9 4.1 1.2 0.9 0.7 0.8
Budger (2022-2023) Budget (2021-2022)

16
4. 3 Changes in Sector
Change
SL NO Sectors (%)
1 Transport and communication 23.70%
2 Public sectors 21.40%
3 Agriculture 20.40%

4 Health 14.20%
5 Education and Technology 13.90%
5 Interest 12.80%
6 Defense Services 7.7%
7 Public Order and Safety 6.9%
8 Energy and Power 6.3%
Local government, Rural development and co-operatives
9 (LGRD) 5.1%
10 Social security and welfare 4.7%
11 Housing -0.3%
12 recreation, culture and religious affairs -1%
13 Industrial and economic services -5.6%
Change in Sector-Wise Allocation from the Fiscal Year 2021-2022 to the Fiscal Year
2022-2023

17
 Change (%)
Transport and communication

Public sectors

-1% -4%
0% Agriculure
3%
16%
4%
Health

4%
Education and Technology

5%
Interest

Defence Services
5% 15%
Public Order and Safety

Energy and Power

9%

Local government, Rural development

and co-operatives (LGRD)

Social security and welfare

14%
10%
Housing
10%
recreation, culture and religious affairs

Industrial and economic services

18
4.4 Sector-wise allocation of ADP
From another perspective, expenses can be divided up into two segments: operating and development
expenses. BDT 4.32 trillion or 60.6% of total expenditure was allocated for operating expenditure while
BDT 2.46 trillion or 36.3% was set aside for Annual Development Program (ADP) [17]. This allocation is
17.2% higher than the revised ADP from FY 2021-22. ADP is historically financed through internal and
external resources. In the current budget, 56% is expected to be sourced from internal and 44% from
external resources [3]. Among the external resources, BDT 930 billion is expected to be sourced from
Project Aid [2]. The top five sectors which will utilize the ADP are given below

Allocation Share (%) of ADP in FY 2022-

Sectors
2023
Transport and communication 0.287
Power and Fuel 0.16
Education 0.118
Housing and community facilities 0.1
Health 0.078
Sector-wise allocation of ADP share in FY 2022-2023

4.5 Sources for Financing

The total BDT 6.78 trillion budget will be financed through tax revenue from the National Board of
Revenue or NBR, domestic loans, foreign loans or grants, and other revenue sources. A total of BDT 3.7
trillion tax revenue from NBR is targeted for the upcoming fiscal year and it accounts for 54.6% of the total
finances. This is a 12.1% increase from the revised budget of the previous fiscal year. The domestic loan
will source 21.6% of finance which is a 17.7% increase from last year. Foreign borrowings account for over
BDT 95 billion which is almost 24% more than the previous revised budget. A breakdown of finances is
given below

Breakdown of Finance FY 2022-

SL No Particulars
2023
1 Tax-Revenue -NBR 55%
2 Domestic Loans 22%

19
 3 Foreign Loans 14%
4 Non Tax Revenue 7%
5 Tax-Revenue -Non-NBR 2%
6 Foreign Grants -1%

Brakedown of Finance FY 2022-2023

2%
7% -1%

14%

54%

22%

1 Tax-Revenue -NBR 2 Domestic Loans 3 Foreign Loans

4 Non Tax Revenue 5 Tax-Revenue -Non-NBR 6 Foreign Grants

Among Tax revenue from NBR: VAT accounts for 38%, Income tax 33%, Import duty 12%, and
Supplementary duty 16%. The overall deficit (excluding grants) of BDT 2.42 trillion accounts for 5.4% of
GDP down from the previous budget’s 6.2%. BDT 1.46 trillion of the deficit will be financed through
domestic sources wherein the banking sector will source 72.7%

20
4.6 Budget, Revenue and Deficits
Size of
Revenue
Budget Deficits (In
SL NO Year collection (In
(In Trillion)
Trillion)
Trillion)
1 Budget 2022-23 6.78 4.33 2.45
2 Budget 2021-22 6.03 3.89 2.14

Budget, Revenue and Deficits(2022-2023 & 2021-2022)

8

7 6.78

6.03
6

5
4.33
3.89 Budget 2022-23
4
Budget 2021-22
3
2.45
2.14
2

0
Size of Budget (In Trillion) Revenue collection (In Trillion) Deficits (In Trillion)

Measures to relieve people on an individual level from the rising economic stress have been a continued
focus, with this year’s budget planning to not increase prices on the consumer level by covering subsidies
across fuel, natural gas, fertilizer, and electricity.

With the looming debt servicing timeline ahead and demand from all fronts, management of subsidies is
considered a critical source of relief to the people and stress to government funds. Hence the government
has tried to hit the right balance for subsidies. The budget proposed a BDT 827 billion allocation (1.9% of
GDP, increased from 1.7% in the previous FY) for subsidies. The major sectors to be relieved by these
subsidies are fuel, electricity, gas, and fertilizer. Electricity will be given BDT 170 billion [4], fertilizers BDT
160 billion [5], and LNG BDT 173 billion.

21
Further efforts to ensure stability in food security for the population has also been extended through the
agriculture sector, where the allocation of 6.2% [6] of the total budget is expected to contribute to the
mechanization of the agricultural process in an attempt to promote synchronized cultivation. A project to
provide 51,300 units of agro-machinery to 12 categories worth BDT 302 billion [7] titled ‘Mechanisation
of Agriculture Work through Integrated Management’ would add to the objective. Prospects to increase
production of all crops including maize and paddy along with necessary research and development in;
seed using biotechnology, best farming practices, and soil health analysis is also expected to attain food
security through higher production.

However, many essential commodities (sugar, palm oil, etc.) import tax rates were not reduced. Hence,
inflation would directly create pressure on personal finances. For the low-income segments of the
population, the impact might become even more severe.

4.7 Summary of Findings

A very positive feature relates to subsidies given on Transport and communication, food oil agricultural
inputs aimed at both raising productivity and alleviating poverty. And transport and communication
budget has been increased from the previous budget which is very necessary for the development of the
country. Because of the fast communication export, import and other businesses can communicate
faster.
And negative feature is that in Defense Services Budget have been decreased from 6.3 to 5.9. And also,
in the Social Security and Welfare & Health Budget also decreases from the previous Budget (2021-
2022).

22
 Chapter Five

5.1 Conclusion

In fine we can say that budget is an important terms or factor for Bangladesh. Because we noticed this
term above. Above this description we tried to show the present scenario of budget and deficits in
Bangladesh. We know that Bangladesh is vulnerable country in the world, Bangladesh wants overcome
this issues that means vulnerability. To reduce vulnerability budget should be effective for country. But
above this study we noticed some there are some negative sides of the budget which influence to create
a good & effective administration badly in our country. So, need to introduce some policy to reduce the
deficits and negative side of budget. So, at last we can Say that budget is the backbone for the people of
Bangladesh.

23
References
1. Budget at a Glance- Ministry of Finance, Government of Bangladesh (GoB)
2. An Analysis of the National Budget for FY2022-23 – Center for Policy Dialogue (CPD)
3. Statement IX, Resources for Annual Development Programme – Ministry of Finance,
Government of Bangladesh (GoB)
4. Graph-1, Operating and Development Budget 2022-23 – Ministry of Finance, Government of
Bangladesh (GoB)
5. Budget 2022-23: Inflationary concerns not addressed adequately – The
Daily Star
6. 5.6% average inflation in FY2022-23 – The Business Standard
7. Hurrah for Bangladesh Inc! – The Business Standard
8. Govt lowers corporate tax to 12% for non-RMG sectors – The Business
Standard
9. A 10-year tax break for fruits and vegetable processing, dairy products – The Business
Standard
10. Govt proposes to keep tax exemption for women-owned SMEs – The Business Standard
11. Businesses to get utilities snapped for unpaid tax – The Business
Standard
12. Four sectors come under tax deduction at sources – The Business
Standard
13. Govt proposes doubling source tax on exports – The Business Standard
14. No more capital injection for state-owned banks – The Business
Standard
15. Tax return mandatory for Facebook, Google, and Twitter – The Business Standard
16. Middle class: A slur is all they get – The Daily Star
17. Kamal places a budget of Tk 6.78 trillion for FY23 – The Financial
Express

24