As the government eyes a much inclusive budget next term, questions often arise in public minds these days as to what’d be the priorities in the ensuing national budget for the fiscal year 2022-23 amid the ongoing spell of Covid-19 pandemic.
The third Covid-19 budget, which will be submitted to parliament in early June this year, is being finalized by the finance minister keeping project prioritization and implementation challenges in view with an eye on various government expenditures and allocations.
- Investment in health sector is a top priority for government
- As budget comes in June, finance minister now finalizing priorities
- GDP rose by 6.9% in FY2020-21, reveals Bangladesh Bureau of Statistics
On the expenditure side, the increase in government spending will have to account for inflationary pressure. As a result, the budget deficit will need to be reduced significantly from the FY2021-22 target of 6.2 per cent of GDP. Traditionally, it’s targeted at 5 per cent.
According to figures from the central bank, the budget deficit in FY22 was Tk 4,428 crore smaller than that of FY21. The Bangladesh Bureau of Statistics (BBS), however, revealed that the country’s gross domestic product (GDP) rose by 6.9% in FY2020-21.
In terms of sector-wise allocation, greater sums are required in a few high-priority projects. Still, investment in the challenging health sector remains a top priority – not just to combat the continuing epidemic, but also to boost the country’s entire health ecosystem.
Many view that the national economy is facing various repercussions in the fiscal year 2021-22 as a result of the deadly claws of the coronavirus. When overall public life gets affected by this, it becomes even more important to manage the economy efficiently. In such a scenario, formulating a budget emphasizing on relevant sectors to meet all the challenges by setting realistic targets has become an area of public interest.