The BDT 3.4 trillion budget is consistent with the finance minister’s recent strategy of setting higher target which will fall short of target but register a modest growth.
IID’s rapid response to national budget highlighted this trend and explained how the government has been playing out the balancing game of big budget and deficit financing over the years. The government will fall short of revenue target and foreign resources, and in the end, a low ADP implementation and higher borrowing from the banking sources will balance out the budget deficit. However, it will continue to put pressure on private investment and cost of domestic credit.
IID’s rapid response was prepared within hours of the Finance Minister’s budget speech on 2nd June 2016, and was published in the Dhaka Tribune on the following morning. The rapid response also highlighted the context of the national budget, money flow, and analysis of the education budget.
