Govt in great pickle over next fiscal year’s budget

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Finance Minister AHM Mustafa Kamal plans to unveil the national budget for next fiscal year on June 11 amid deepening uncertainties due to the deadly coronavirus.

Earlier this week, he proposed two dates to the prime minister for presenting the budget for fiscal 2020-21. The premier chose June 11 over June 4.

The finance minister in addition has kept the coronavirus situation at heart as he prepares the budget for the next fiscal year. The final decision about how big is the budget, targets and modes will be taken in the first week of May.

Although the complete country has been on lockdown since March 25 due to the rising cases of the novel virus, the finance ministry's budget formulation team has been attempting to prepare it in June.

The core teams of the budget formulation committee are going to the office as usual.

Kamal discussed alternatives with the prime minister if the pandemic makes the situation in Bangladesh a lot more complex.

Among the alternatives may be to unveil a short-term cover three months in line with a provision of the constitution. Alternatively, a temporary cover two months may be presented beneath the presidential ordinance.

During the period of the momentary budget, the finance ministry would polish off the entire fiscal year budget.

Last year, ahead of the polls, India had announced an interim budget.

Another option is to provide the full-year budget and revise it after 25 % or so.

COVID-19, which has brought the economy to its knees, is not the only cause for concern for the finance minister.

Deficits and public borrowings were already increasing for the past year-and-a-half amid sluggish earnings generation before coronavirus hit.

How big is the national budget was primarily planned at more than Tk 600,000 crore, in keeping with the growth observed in the last decade. 
Source: https://www.thedailystar.net

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