Professional Documents
Culture Documents
Budget Highlights
2016-17
Macroeconomi
c Outlook
Description
Revenue Collection
Total Expenditure
ADP
Non- ADP
Overall Deficit (Excl
Grants)
RB FY16
BFY17
% of
GDP
% of
GDP
10.3
15.3
5.3
10.0
5.0
12.4
17.4
5.6
11.7
5.0
Financing
Foreign Grants
0.3
Foreign Loan-Net
1.2
Foreign Loan
1.6
Amortization
0.4
Domestic Borrowing
3.6
Bank Borrowing (Net)
1.8
Non- bank Borrowing (Net)
1.8
Growth
BFY17
over
RBFY16
36.8
28.7
21.6
32.5
12.3
FY15-16
7.0
7.2
30.1
31.0
22.8
23.4
7.3
7.5
4.3
4.3
6.2
6.0
0.3
1.6
2.0
0.4
3.1
2.0
1.2
9.7
54.2
44.0
15.2
(1.0)
22.9
(25.9)
FY16-17
ICOR
CPI inflation (%)
9%
Non-Tax Revenue
18%
60%
10%
2%
Pension
Industrial & Economic
SErvices
Recreation, Culture &
Religious Affairs
Housing
1%
7%
15%
12%
11%
5% 5% 1%
6%
1%5%
7%
6%
4%
7%
4% 5%
Graph: NONDEVELOPME
NT &
DEVELOPME
NT BUDGET:
2016-17
( TAKA
3,406.05
BILLION) Use
of Resources
3%
5% 0%1% 1%
8% 1%
4%
6%
14%
8%
3%
13%
8%
7%
Agriculture
Health
Social Security &Welfare
Transport &
Communication
Public Administration
Pension
Public Order & Safety
Defence
Education & Technology
Interest
Miscellaneous Expenditure
Graph:
NON-DEVELOPMENT
BUDGET: 2016-17
(TAKA 2,280.79
BILLION) Details of
Sector-wise
Allocation
Others
Social Security
&Welfare
Graph:
DEVELOPMENT
BUDGET : 201617
(TAKA 1,125.26
BILLION)
Details of
Sector-wise
Allocation
13%
7% 3%
27%
5%
6%
6%
15%
18%
Public Administration
Health
Agriculture
Education &
Technology
Local Govt. & Rural
Dev.
Transport &
Communication
Energy & Power
1% 3%
5%
14%
44%
Development
Assistance
Unapproved
Carryover
Concluding
Continuing
6%
13%
23%
Development
Assistance
Unapproved
Carryover
Concluding
Continuing
Companies
Tax rate
Nil
10 percent
15 percent
20 percent
25 percent
30 percent
Tax Rate for cigarette, bidi, zarda, chewing tobacco, gul, or any other tobacco products
manufacturers other than Companies
Cigarette, bidi, zarda, chewing tobacco, gul or any other tobacco products
manufacturers
45 percent
30 percent
15 percent
Other
Fiscal Measures
Wealth
Surcharge:
Tax
on
net
wealth
above Tk. 20 crore
has been raised to
30% (from 20%)progressive taxing
for Tk. 5 crore and
above net assets,
higher
revenue
collection
Tax compliance
and combating
tax evasion:
Compulsory return
submission by all
employees of
government, nongovernment, semigovernment and
autonomous bodies
with monthly basic pay
of Tk. 16,000 or higher
FY15-16
FY16-17
Comment
Increased (%)
Rice (all), Maize (flour)
10
25
10
15
10
25
10
Optical fibers
10
15
Decreased (%)
Lubricating oil, petroleum jelly, dextrin, glues,
stripping chemical gum rosin, poly salt, organotin
compounds
25
15
Plastic products
25
10-15
25
25
0-15
Major Changes in
Supplementary Duty
Increased
50% on Tobacco and other manufactured tobacco substitutes; 10% on Broken
or
crushed stone; 10% on Other perfumery
Imposition
10% on boulder stone; 45% on most of the bars and rods, hot rolled, in
irregularly
wound coils, of iron or non-alloy steel; 20% on angles, shapes and sections of
iron
or non-alloy steel; 10% on Electrical goods(lamp holder, connector)
Decreased
10% decrease for agricultural good (stabilizer for milk), Coffee mate; 10%
decrease
on electrical good (DOP); 45% to 20% motor cycle assembling (next two
years)
Exemption
Incidenc
e
According to the budget
documents, CD, SD and
VAT at import stage was
planned
to grow at more than 30%
in FY17
An
additional
Tk.80217
crore (1.5%
of GDP)
worth of
private
investment
has been
targeted
Sectoral Measure:
Industry
Highlights
Rationalization of
duties and taxes on
some inputs used
by toiletries,
ceramic, paper and
rubber industries,
electrical
equipment, IT, gas
and power
Continuation of
incentives for
exports with an
allocation of
Tk.4500 crore
Prospect of
positive changes
in global and local
demand for
industrial products
in FY17 will
directly influence
investors decision
to invest
Description
of goods
Boulder stone
Broken or
crushed stone
3
4
Ferro alloy
Billet
RD-25 percent
Specific duty BDT 7000/MT, VAT-0 Tariff
Value $ 400/MT, percent
CD-10 percent, 25 percent, RD-4Tariff Value
$ 400/MT, percent, VAT-15 percent
Angle
Fly ash
Existing Rate
Proposed Rate
End
Note!!
It can be concluded that if exigent, prudent, context specific and
creative policies are pursued, the economy would march forward and
the country may soon graduate out of its least development status. It
can also be emphasized that the proposed actions for FY 2016-17
should be able to bring about fiscal discipline in implementation of
government expenditure on the one hand, and to increase income
through reforming the tax system on the other.
Sources:
http://www.mof.gov.bd/en/index.php?option=com_content&view=article&id=343&Itemid=1
http://www.unnayan.org/reports/meu/April_2016/MEU%20Full%20Report_April_2016.
http://lankabd.com/mubasherFileServer/File.Exchange_English_Reports/LBSL%20Bangla
desh%20Budget%20Analysis%20FY'17.pdf