An Analysis of the Budget of Bangladesh for the

Fiscal year 2015-16 Along with

Its Previous Trend of Growth and Reduction
Submitted to

Halima Begum, Ph.D.

Associate Professor,

Department of Urban and Regional Planning,

Jahangirnagar University, Savar, Dhaka 1342

Submitted by

Naima Farzana Roll: 797

Salman Jahangir Roll: 803
Joyanta Das Roll: 811
Md. Remon Ahmed Asif Roll: 813
Md. Mashrukur Rahman Roll: 817

Department of Urban and Regional Planning,

Jahangirnagar University, Savar, Dhaka 1342

Date of the Submission:May 29, 2016

Table of content Page No.
Cover 1
Table of Content 2
Introduction 3
Budget Typology 4
Budget FY2015-16 at a Glance 5-6
Budget FY2015-16 Summary 7
Budget FY2015-16 Analysis 8-9
Revenue and Revenue Typology 10-11
Analysis of Revenue 12-14
Revenue by NBR & Non-NBR 15
Expenditure and Expenditure Typology 16
Expenditure by Sector 17
Analysis of Expenditure 18-20
Deficit by Category 21
Analysis of Deficit 22
Finance Type 23
Finance Sources 23
Analysis of Finance 24
References 25-16
 1. Introduction

A budget (from old French bougette, purse) is a financial plan and a list of all planned
expenses and revenues. A government budget is a legal document that is often passed by the
legislature, and approved by the chief executive-or president. The two basic elements:
Revenues and Expenses. Revenues are derived primarily from taxes and non-tax revenue.
Government expenses include spending on current goods and services, which economists call
government consumption; government investment expenditures such as infrastructure
investment or research expenditure; and transfer payments like unemployment or retirement
benefits, Social Safety nets.

1.1 Budget:

Budget is an estimate of costs, revenues, and resources over a specified period, reflecting a
reading of future financial conditions and goals. The term Budget is commonly understood
as a document presented by a government containing an estimate of proposed expenditure for a
given period. Government budget is a schedule of all revenues and expenditures that the
government expects to receive and plan to spend during the following year.

According to Prof. Rene Stourn, Budget is a preliminary approved plan of public revenue
and expenditure.

B.E Buck defines budget as a) Finance plan, b)A procedure formulating, authorizing,
executing and controlling this plan and c) some government authority responsible for each
successive step in this procedure.

Government Budgets contain the strategies for mobilization, allocation and

disbursement of public money by means of fiscal and monetary operations with due
consideration of political, economic, and bureaucratic decision - making process.
Constitutionally, Bangladesh uses the term 'Annual Financial Statement', which shows
the estimated receipts and expenditures of the government for a particular financial
year. In accordance with the Constitutional provisions in the country, the budget is
divided into Consolidated Fund (CF) and Public Account (PA) of the Republic.

1.2 Types of Budget:

Based on the balancing of revenue and expenditure, budget is divided into two types. These
are-

a) Balanced budget:
Is a Government budget where the current expenditure equals current revenue. Most
government budgets are unbalanced almost always on the expense side, purportedly to spur
growth and reduce unemployment by creating demand with additional money supply.
In this budget which revenues are equal to expenditures. Thus, neither a budget deficit nor a
budget surplus exists. More generally, it refers to a budget that has no budget deficit, but could
possibly have a budget surplus.

b) Unbalanced budget.
The budget imbalance may be due to an excess of expenditure over income or an excess of
income over expenditure. Budget may either surplus or deficit. A surplus budget means a
budget when public revenue exceeds public outlay (R>E). A deficit budget means a budget
when public expenditure exceeds revenue (R<E). This budget again divided into two section.
Surplus Budget: If the government collects more revenue than it is spending, it is in surplus

Deficit Budget: If the Government spends more than it collects, there is a deficit.
Again the government budget is divided into

a) Revenue budget
b) Capital budget

In Bangladesh, on the basis of expenditure budget is categorized as following-

1. Developmental Budget

2. Non Developmental budget

 BUDGET AT A GLANCE
(Taka in Crore)
Budget Revised Budget Actual
Description
2015-16 2014-15 2014-15 2013-14
Revenue and Foreign Grants
Revenues 2,08,443 1,63,371 1,82,954 1,40,375
Tax Revenue 1,82,244 1,40,676 1,55,292 1,16,031
NBR Tax Revenue 1,76,370 1,35,028 1,49,720 1,11,423
Non-NBR Tax Revenue 5,874 5,648 5,572 4,609
Non-Tax Revenue 26,199 22,695 27,662 24,343
Foreign Grants/1 5,800 5,674 6,206 6,357
Total : 2,14,243 1,69,045 1,89,160 1,46,732
Expenditure
Non-Development Expenditure 1,84,559 1,49,399 1,54,241 1,21,008
Non-Development Revenue Expenditure of which : 1,64,571 1,27,371 1,28,231 1,10,567

Domestic Interest 33,396 28,187 29,305 26,601

Foreign Interest 1,713 1,678 1,738 1,604
Non-Development Capital Expenditure 19,988 22,028 26,010 10,441
Net Outlay for Food Account Operation 227 157 309 331
Loans & Advances (Net) 7,755 9,636 9,611 7,718
Development Expenditure 1,02,559 80,476 86,345 59,151
Development Programmes Financed from Revenue Budget 633 786 1,068 714

Non-ADP Project 3,339 3,317 3,469 2,078

Annual Development Programme 97,000 75,000 80,315 55,333
Non-ADP FFW and Transfer 1,587 1,373 1,493 1,026
Total - Expenditure : 2,95,100 2,39,668 2,50,506 1,88,208
Overall Deficit (Including Grants) : - 80,857 - 70,623 - 61,346 - 41,476
(In percent of GDP) : - 4.7 - 4.6 - 4.5 - 3.5
Overall Deficit (Excluding Grants) : - 86,657 - 76,297 - 67,552 - 47,833
(In percent of GDP) : - 5.0 - 5.0 - 5.0 - 4.1
Financing
Foreign Borrowing-Net 24,334 15,909 18,069 3,349
Foreign Borrowing 32,239 23,872 26,519 11,939
Amortization - 7,905 - 7,963 - 8,450 - 8,590
Domestic Borrowing 56,523 54,714 43,277 38,136
Borrowing from Banking System (Net) 38,523 31,714 31,221 18,168
Long-Term Debt (Net) 24,182 22,061 19,824 16,405
Short-Term Debt (Net) 14,341 9,653 11,397 1,763
 BUDGET AT A GLANCE

(Taka in Crore)

Budget Revised Budget Actual

Total - Financing :
2015-16 2014-15 2014-15 2013-14
Description
18,000 23,000 12,056 19,968
Non-Bank Borrowing (Net) 15,000 21,000 9,056 11,774
National Savings Schemes (Net) 3,000 2,000 3,000 8,194
Others 80,857 70,623 61,346 41,485
Memorandum Item: GDP 17,16,700 15,13,600 13,39,500

Source: Ministry of Finance, Government of Peoples Republic of Bangladesh.

2016

6|Budget Analysis
Budget of Bangladesh in 2013-14 to 2015-16 Economic Years:

Developmental and Non-developmental Budget

Category Year 2013-14 Year 2014-15

Amount(in Percentage Amount(in core) Percentage
core)
Developmental 67327 30.26% 81808 32.66%
Non 155163 69.74% 168699 67.34%
Developmental
Total 222491 100% 250506 100%

Table: Summary of the Budget (BDT bn) Year 2015-16

FY '16 FY '15(Revised)
Revenue Earnings 2084.43 1633.71
NBR tax revenue 1763.7 1350.28
Non-NBR tax revenue 58.74 56.48
Non-tax revenue 261.99 226.95
Public Expenditure 2951 2396.68
Non-development expenditure 1645.71 1273.71
Development Expenditure 1025.59 804.76
Other Expenditure 279.7 318.21
Budget deficit 866.57 762.97
Financing
Domestic Sources 565.23 547.14
Bank Borrowing 385.23 317.14
Non- Bank Borrowing 180 230
External Sources 301.34 215.83

1.3 Analysis:

In between 2013-14 and 2014-15 economic year developmental budget is

increased 2.4%, on the other hand non development budget decreased 2.4% which

7|Budget Analysis
indicate that government has given more emphasis on development activity rather
than non-development sector. The budget for FY16 is BDT 2951.00 billion in size
which is 23.1% higher compared to that of the FY15 revised budget and the
largest of its history.

Estimated GDP growth rate for fiscal 2015-16 is 7.3%.If GDP growth in FY15 has
to be 7.3%, private investment (as % of GDP) has to grow from 21% to 25% (4-
5% percentage points or around Tk. 75,000 core additional amount of private
investment or USD 9.5 billion) in a single year. It is an impossible target. GDP
growth rate was estimated 6.5% for fiscal year 2013-14.

The budget has revenue target of BDT 2084.43 billion which is 27.6% higher than
that of the FY15 revised budget. Projected deficit of the budget is BDT 675.52
billion which is 5.0% of GDP and 29.4% of the budget. Non-development
expenditure is BDT 1645.71 billion which is 55.8% of the budget and development
expenditure is BDT 1025.59 billion, 34.8% of the budget. Sector-wise, Public
services has got the highest allocation (19.2%) followed by Interest Payment
(11.9%) and Education (10.6%) respectively.

Private sector credit growth for FY14 is reported to be 16.5% (11.5% as of March
2014). Inflation rate to come down to FY14 at 7.0% (7.5% in April 2014) and
target for FY15 is set at 6.0%. Export is expected to increase by 15% in FY15.
Import on the other hand is anticipated to grow by 15% in FY15. 10% growth of
remittances inflow is envisaged for FY15 ((-) 3.6% growth during Jul- May FY14).
Foreign exchange reserve at the end of FY14 will be $16.9 billion (20.4 billion on
3 June14).
The total ADP size in the Budget FY16 is BDT 970.00 billion which is 29.3%
higher than that of FY15 revised budget. In the ADP for FY16, 22.0% is
allocated to Human Resource sector (education, health and others), 25.3% to
overall agricultural sector, 19.1% to energy sector, 22.3% to communication sector
and the rest 11.4% is allocated to other sectors. The government has scaled up its
revenue generation target to BDT 2084.43 billion, a rise of 27.6% from BDT
1633.71 billion of the FY15 revised budget. The targeted revenue is 12.1% of the
GDP, down from 13.7% of GDP in previous fiscal year. Estimated 12.1% revenue
to GDP ratio is very low. Our Tax-GDP ratio (around 10.6% in the FY16
proposed budget) still lags behind many developing countries. This years budget
deficit is kept unchanged to that of the previous years budget at 5.0% of the GDP.

8|Budget Analysis
The total Budget deficit is estimated to be BDT 866.57 billion. Out of which
domestic source will finance 65.2% and external source will finance 34.8%. Out of
domestic sources, Govt. will borrow BDT 385.23 billion from the banking system,
which is 23.4% jump from the FY15 targeted bank borrowing (21.5% up from the
revised budget FY15).

9|Budget Analysis
 2. Revenue:

Government Revenues refer to all receipts the government gets, including taxes,
custom duties, revenue from state-owned enterprises, capital revenues and foreign
aid. Government Revenues are part of government budget balance calculation.

Government of Bangladesh collects its revenue from various sources and they are
mainly categorized in two types, Tax Revenue and Non Tax Revenue. The income
of government through different sources is known as revenue or public revenue or
public income. These sources include income from taxes, fees, fines, gift and
grants etc.

2.1 Type of Revenue

A. Tax Revenue
Tax revenue mainly collected by National Board of Revenue (NBR) but
there are some other sources of taxes which are not collected by NBR.
a. National Board of Revenue (NBR) Tax

Taxes on Income and Profit

Value Added Tax (VAT)
Import Duty
Export Duty
Excise Duty
Supplementary Duty
Other Taxes and Duties

b. Non-NBR Tax
Narcotics and Liquor Duty
Taxes on Vehicles
Land Revenue
Stamp Duty (Non Judicial)

B. Non-Tax Revenue

10 | B u d g e t A n a l y s i s
 Dividend and Profit
Interest
Administrative Fees and Charges
Fines, Penalties and Forfeiture
Receipts for Services Rendered Rents, Leases and Recoveries
Tolls and Levies
Non-Commercial Sales
Defense Receipts
Other Non-Tax Revenue and Receipts
Railway
Post Offices
Capital Revenue

Foreign grants, 2.0%

Foreign loans, 8.2%

Domestic financing,
19.1%

Tax revenue(NBR),
59.8%
Non-tax revenue,
8.9%

Tax revenue(non-
NBR), 2%

Figure: Sources of Revenue (overall)

11 | B u d g e t A n a l y s i s
 Fig: Internal Revenue Target '16

25.00%
37.40% Corporate Tax
Import SD
11.20% Import VAT
Custom Duty
10.70% Local SD
12.20%
Local VAT
3.50%

2.2 Analysis:
The revenue budget pays for the normal functioning of the government and is
intended to be fully financed from domestically generated sources. Tax revenues,
almost half of them from customs duties, accounted for about 80 percent of
revenue receipts. Excise duties and sales taxes also were important, each producing
more revenue than taxes on income.

Most types of revenue have increased from 2013-14 to 2014-15. Tax on income
and profit is the major source of revenue, after that VAT hold second position,
supplementary duty is in third position which is decreased 0.59% in 2014-15 year
to 2013-14 year. NBR collect the lions share of revenue. Export duty is a minor
source of tax. Overall there is 9.25% increased in revenue collection between two
years.
.

12 | B u d g e t A n a l y s i s
 Analysis of Budget Revenue of 2013-14 and 2014-15 Economic Year of Bangladesh

Year 2013-14 Year 2014-15

Amount(in % Amount(in %
core) core)
Tax NB Taxes on Income and 48,297 28.84 56,086 30.66
revenue R Profit
Tax Value Added Tax (VAT) 49,956 29.83 55,013 30.07
Import Duty 14,629 8.7 14,590 7.97
Export Duty 45 0.03 33 0.02
Excise Duty 1,310 0.78 1,251 0.68
Supplementary Duty 20,853 12.45 21,334 11.66
Other Taxes and Duties 1,000 0.60 1,413 0.77
Non Narcotics and Liquor Duty 70 0.04 77 0.04
NB Taxes on Vehicles 1,155 0.69 1,248 0.68
R Land Revenue 640 0.38 738 0.4
Tax Stamp Duty (Non Judicial) 3,264 1.95 3,509 1.92
Dividend and Profit 4,693 2.8 4,932 2.7
Non Interest 1,087 0.65 727 0.4
Tax Administrative Fees and 4,374 2.6 4,501 2.46
revenue Charges
Fines, Penalties and 427 0.25 458 0.25
Forfeiture
Receipts for Services 831 0.50 495 0.27
Rendered
Receipts for Rents, 155 0.09 159 0.09
Leases and Recoveries
Tolls and Levies 475 0.28 495 0.27
Non-Commercial Sales 383 0.23 389 0.21
Defense Receipts 2,518 1.5 2,539 1.39
Other Non-Tax Revenue 9,973 5.96 11,507 6.29
and Receipts
Railway 1,000 0.60 1,100 0.6
Post Offices 264 0.16 294 0.16

13 | B u d g e t A n a l y s i s
 Capital Revenue 60 0.04 66 0.04
Total 1,67,459 100% 1,82,954 100%

14 | B u d g e t A n a l y s i s
2.3 NBR Tax Revenue

The budget for the FY16 has targeted BDT 1763.7 billion revenue from NBR tax
which is 84.6% of the target revenue. This is 30.6% higher than that of FY15s
revised budget. In the revised budget of FY15, this target was BDT 1350.28
billion which was 82.7% of total revenue. Of the total target, 37.4% will come
from income tax and corporate tax, 37.2% from Value Added Tax (VAT) and
25.4% from customs and supplementary duty. In order to achieve these targets,
automation in tax collection is set in to reduce complication in tax collection and
significant administrative reform has been done.

2.4 Non NBR Tax Revenue & Non Tax Revenue

There is target for BDT 58.74 billion or 2.8% of total revenue to collect from Non-
NBR tax which is 3.5% of total revenue in the current fiscal. Revenue from non-
tax sources is estimated to be BDT 261.99 billion or 12.6% of total revenue which
was BDT 226.95 billion or 13.9% of total revenue in the FY15s revised budge

15 | B u d g e t A n a l y s i s
 3. Expenditure:

The expenses incurred by the governments for its own maintenance, preservation
and welfare of the economy as a whole referred as expenditure or public
expenditure. The major cause of increase public expenditure is developmental
functions. Developmental functions include education, public health, social
security, irrigation, canal, drainage, roads, buildings etc.

3.1 Types of Expenditure

Developmental Sector
Energy and power
Transportation and communication
Local Government and Rural development
Education and Technology
Agriculture
Health
Public Administration
Social Security and Welfare
Others

Non Developmental Sector

Interest
Education and Technology
Defense
Public Order and Safety
Pension
Public Administration
Transportation and communication
Social Security and Welfare
Health
Agriculture
Subsidies
Local Government and Rural development
Housing
Recreation , Culture and Religious Affairs
Industrial and Economic Service
Miscellaneous Expenditure

16 | B u d g e t A n a l y s i s
 Sectors (for fiscal year 2015-16) Amount( core Percentage(%)
tk)
Industrial and economic service 2755 0.9
Recreation, culture and religious affairs 2283 0.8
Housing 2918 1.0
Public order and security 13630 4.6
Social security and welfare 16725 5.7
Public administration 56696 19.2
Defense 18383 6.2
Agricultural 19979 6.8
Health 12695 4.3
Energy and power 18540 6.3
Local government and rural development 20996 7.1

Transportation and communication 28700 9.7

Interest 35109 11.9
Education and information technology 34370 11.6
Miscellaneous expenditure 3.9

Sector Year 2013-14 Year 2014-15

Education and Technology 11.3% 12.4%
Interest 12.5% 12.4%
Transport and communication 9.0% 9.5%
Local Government and Rural 6.6% 7.0%
development
Energy and Power 5.1% 4.6%
Health 4.1% 4.2%
Agriculture 3.6% 3.8%
Defense 5.6% 5.8%
Public Administration 10.6% 7.5%
Social Security and Welfare 5.1% 5.6%
Public Order and Safety 4.1% 4.5%

17 | B u d g e t A n a l y s i s
Housing 0.8% 0.8%
Recreation , Culture and Religious 0.8% 0.8%
Affairs
Industrial and Economic Service 1.4% 1.2%
Pension 3.0% 3.4%
Subsidies 6.9% 6.6%
Miscellaneous Expenditure 9.5% 9.9%

3.2 Analysis:

In the proposed budget for FY16, total expenditure has been estimated at BDT
2951.00 billion. This is 17.2% of GDP and 23.1% higher than that of the revised
budget for FY15. The overall expenditure framework has been categorized into
three main groups based on their allocation of businesses. Power & Energy
allocation increased by 98.5% in Budget FY16. These are social infrastructure,
physical infrastructure, and general services. In the proposed budget, 23.4% of
total outlay has been allocated to social infrastructure, 30.6% to physical
infrastructure, and 28.0% to general services. Sector-wise, Public services, Interest
Payment, and Education and Technology have got preference having 19.2%,
11.9%, and 10.6% respectively. The allocation for non-development expenditure
has been set at BDT 1,645.71 billion. For development expenditure, it has been
estimated at BDT 1025.59 billion which is 6.0% of GDP and 27.4% higher than
that of revised budget of FY14. Size of proposed ADP allocation is BDT 970.00
billion which is an increase of 20.8% from the budget for FY15 and 29.3% higher
than revised budget for FY15. In ADP agriculture and rural development got the
highest priority (25.3% allocation). Transport and Communication, Human
Resource, and Power and Energy got 22.3%, 22.0%, and 19.1% of the ADP
allocation respectively.

18 | B u d g e t A n a l y s i s
 Figure: Sector wise Expenditure of the budget 2015-
16 (in crore taka)

Interest, 35109

Public Services, 56696

Transport and
Communication, 28700

Industrial and
Economic Service,
2755 Local Government and
Rural Development,
20966
Agriculture, 19979

Defense services,
18383

Fuel and Energy,

18540

Public
Recreation, Culture Order and
and Religious Affairs, Safety,
2283 13630
Social Security
Housing, 2918 and Welfare, Education and
16725 Technology, 34370
Health,
12695

19 | B u d g e t A n a l y s i s
In 2013-14 economic year interest covers the largest share of expenditure and
education and technology cover the second position, public administration hold the
third position. On the other hand education and technology, and interest both cover
the largest position in expenditure sector but miscellaneous sector holds third
position. Housing and recreation, culture and religious affairs remain same for both
years which are in last position. On transport and communication, social security
and welfare, pension, sector expenditure is increased in between 2013-14 to 2014-
15 year. But the other sectors expenditures are decreased.

This remains constant for both current (non-advancement) and improvement

consumptions of Government in Bangladesh. The non-improvement open
consumption incorporates the wages and compensations bill and all other repeating
sort spending. Under the proposed spending plan for financial 2015-16, such non-
advancement consumption will represent 11.5% of the nation GDP contrasted with
10.7% (of the GDP) in the active one. In supreme terms, government non-
advancement spending will ascend to Taka 1.98 trillion in FY 2015-16 from Taka
1.61 trillion under the changed spending plan for the active financial. On the
advancement side, the proposed spending plan for monetary 2015-16 has dispensed
Taka 970 billion for financing the Annual Development Program (ADP). The
National Board of Revenue (NBR) has been given an objective of acknowledging
Taka 1.76 trillion as duties for FY 2015-16 under the proposed spending plan.
Such an objective, in the background of a setback of Taka 190 billion under the
amended spending plan for monetary 2014-15 in connection to the first one for the
year, will include a Herculean errand in regions of extension of duty system
specifically. Its execution will depend not just on its ventured up drive for income
accumulation additionally on the force of general financial exercises, for the most
part in the private segment.

20 | B u d g e t A n a l y s i s
 4. Deficit:

A budget deficit occurs when a government spends more money than it takes in.
The opposite of a budget deficit is a budget surplus.

According to budget of FY 2015-16 Government Budget deficit equal to 4.70

percent of the country's Gross Domestic Product in 2015. Government Budget in
Bangladesh averaged -3.42 percent of GDP from 1994 until 2015, reaching an all
time high of -2 percent of GDP in 1997 and a record low of -4.70 percent of GDP
in 2015. Government Budget in Bangladesh is reported by the Ministry of Finance,
Bangladesh.

The deficit in the outgoing fiscal year was Tk613.46bn and is now expected to be
Tk866.57bn in the next budget, according to the budget document.

BFY2015-16 RFY2014-15

Core Taka % of GDP Core Taka % of

GDP
Revenue collection 182954 13.7 156671 13.3
Total Expenditure 250506 18.7 216222 18.3
ADP 80315 6.0 60000 5.1
Non-ADP 170191 12.7 156222 13.2
Overall Deficit(Excl 67552 5.0 59551 5.0
Grants)

4.1 Analysis:

In 2013-14 economic year total amount of the budget including developmental and
non development was 2224.9 million. From this government revenue was 1674.9
million. So there is 550 million deficits in the budget. Government is fulfilled this
deficit by foreign grants, domestic finance, foreign loan. But in 2014-15 economic
years total size of budget was 2505.06 million and deficit was 675.52.

The budget deficit for the FY16 will be BDT 866.57 billion or 5.0% of GDP.
Though budget deficit has increased by 13.6% from the revised budget of FY15,
deficit to GDP ratio hasnt increased. Deficit to GDP ratio in India, Pakistan and
Sri Lanka in the FY16 are 3.9%, 4.3% and 5.0% respectively. Considering that
21 | B u d g e t A n a l y s i s
Bangladeshs deficit is not that high, financing the deficit is challenging but
possible.

4.2 Analysis of Figure: Negative Trend of budget deficit and its share in GDP.
This Data is courtesy of tradingeconomics.com and in X-asis, its indicating the
respective financial year and on the other hand, in Y-asis, its showing portion of
deficit in GDP.

22 | B u d g e t A n a l y s i s
 5. Finance:

Finance of budget is required to accomplish the shortage of the budget occurs from
expense more than revenue generation. The following table shows the contribution
of different sources to overcome deficit in fiscal year 2015-16. The data of fiscal
year 2014-15 is also given for comparative analysis.

There are 6 types of financing source of Budget. They are

Tax Revenue(NBR)
Tax Revenue(Non NBR)
Non Tax Revenue
Domestic Finance
Foreign Loan
Foreign Grants

Financing sources FY2015-16 FY2014-15

Core Taka % of GDP Core Taka % of

GDP
Foreign Grants 6206 0.5 5956 0.5
Foreign Loan-Net 18069 1.3 12613 1.1
Foreign Loan 26519 2.0 21058 1.8
Amortization 8450 0.6 8445 0.7
Domestic Borrowing 43277 3.2 40982 3.5
Bank Borrowing 31221 2.3 29982 2.5
(Net) 12056 0.9 11000 0.9
Non-Bank
Borrowing(Net)
Net Aid Requirement 24275 1.8 18569 1.6
Net Aid Requirement 3.1 1.8 2.4 1.6
(USD)
Gross Aid Requirement 32725 2.4 27014 2.3
Gross Aid Requirement 4.1 2.4 3.4 2.3
(USD)

23 | B u d g e t A n a l y s i s
 % of Total
Budget Expenditure
2015-16
Name of the sources:
Overall Financing: 295,100 100.0
External Sources 30,134 10.2
Foreign Grants 5,800 2.0
Foreign Borrowing (Net) 24,334 8.2
Internal Sources 264,966 89.8
Revenue to finance Non Dev. Rev. Exp 164,571 55.8
Revenue Surplus 43,872 14.9
Domestic Borrowing 56,523 19.2
Borrowing from Banking System (Net) 38,523 13.1
Non-Bank Borrowing (Net) 18,000 6.1

5.1 Analysis:

Tax revenue from National Board of Revenue (NBR) is the major source of
financing. But in 2014-15 economic year Tax revenue (NBR) is increased 1.4%
than the past year. In 2013-14 economic year total revenue is 75.3% of budget and
other 24.7% resources was collected from different sources such as: domestic
finance, foreign loan, and foreign grants and among them domestic finance cover
the lions share. On the other hand in 2014-15 economic year revenue is 73.0 % of
total budget and other 27.0% was collected from different sources, they are
domestic finance, foreign loan, and foreign grants among them domestic finance
are major, which is increased 2.0% from the previous year.

24 | B u d g e t A n a l y s i s
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