Even after downsizing the current revised budget by more than Tk 3,000 crore, the bank borrowing marks a 35 per cent rise due to drastic declines both in foreign loans and grants.

While a 12 per cent revenue growth on an average could be achieved over the last four years, a 17 per cent growth for the coming fiscal seems quite ambitious and especially so with more emphasis given to collection from income tax and VAT.

The government's overall expenditure has been raised by 14 per cent in the new budget from the current revised one, of which revenue expenditure has risen by 14.11 per cent and development expenditure by 21 per cent.

In the current revised budget, the overall expenditure has been cut by more than 5 per cent while revenue expenditure has been cut by around 3 per cent and development expenditure by more than 11 per cent.

FY07 BUDGET
Total expenditure for the coming fiscal year has been fixed at Tk 69,740 crore, which is Tk 8,642 crore more than that of the current revised budget. Of it, revenue expenditure has been raised by 14.11 per cent to put it at Tk 42,286 crore.

The total development expenditure has been raised by 20.47 per cent to put it at Tk 28,463 crore. Of it, non-ADP expenditure has been increased by 45 per cent to make it Tk 1,982 crore. Again, ADP expenditure has been raised by 21 per cent to make it Tk 26,000 crore.

Total revenue in the coming fiscal has been raised by 17 per cent from the current revised budget to make it Tk 52,542 crore. Of it, NBR portion has been increased by 19 per cent to put it at Tk 41,055 crore. Again non-tax revenue has been raised by 11 per cent to make it Tk 9,627 crore.

In NBR tax portion, highest emphasis has been put on income tax, which has been raised by 22 per cent while VAT was proposed to be raised by 18.80 per cent. Import tariff has been increased by 15 per cent while supplementary tariff by 20.44 per cent in the coming fiscal compared to the current budget.

The overall deficit except grants has been set at Tk 17,198 crore, which is 3.7 per cent of the GDP.

FY06 REVISED BUDGET
Total expenditure for the revised current budget has been fixed at Tk 61,058 crore, which is 5 per cent less than that of the original budget. Of it, the revenue expenditure has been reduced by 2.69 per cent to put it at Tk 37,057 crore.

Total development expenditure has been reduced by 11 per cent to put it at Tk 23,626 crore. Of it, ADP expenditure has been reduced by Tk 3,000 crore to make it Tk 21,500 crore.

Total revenue in the current revised budget has been reduced by 1.86 per cent from the original budget to make it Tk 44,868 crore. Of it, NBR portion has been reduced by Tk 1,196 crore to make it Tk 34,456 crore. Again non-tax revenue has been raised by Tk 283 crore to make it Tk 8,693 crore.

The overall deficit (except grants) in the original budget was set at Tk 18,661 crore, but because of failure to fully implement the ADP, the deficit has come down to Tk 16,190 in the revised budget, which is 3.9 per cent of the GDP.

DEFICIT FINANCING
A change has been marked in the case of both foreign aid and internal borrowing.

In the revised budget, net foreign loan has been reduced by 21 per cent from the original budget to make it Tk 5,574 crore. In the new budget, net foreign loan has been raised by 5 per cent to put it at Tk 5,856 crore.

In the current revised budget, foreign grant has been reduced by 25 per cent from the original to make it Tk 2,476 crore. In the new budget, it has been raised by 1.2 per cent to make it Tk 2,508 crore.

In the current revised budget, bank borrowing has been raised by 35 per cent from the original to make it Tk 4,911 crore. In the new budget, it has been raised by 11 per cent to make it Tk 5,434 crore.