Analysis of Budget Essay

Submitted By spalit1
Words: 1541
Pages: 7
Open Document
Executive Summary

The budget size for the year 2013-14 is Tk 222,491 crore. The budget is 16 % higher from the current fiscal year. The revenue target of the budget has been set at Tk 1,67,459 crore while the budget deficit will be Tk 55,032cr, which is 4.6 % of the gross domestic product. Of the revenue, Tk 1,36,090cr is expected from NBR tax revenue, Tk 5,129 crore from non-NBR tax revenue and Tk 26,240cr from non-tax revenue. The government expects Tk 6,670cr in foreign grants.

Budget FY: 2012-2013 at a Glance:

• Size of the Budget will be around BDT 2224 Billion

• Size of ADP could be BDT 658 Billion

•Total Income: 1741 Billion

• Targeted GDP Growth Rate 7.2%

• Revenue Earning BDT 1360 Billion (from NBR source)

• Priority given to

Check Inflation

Facilitate Power Sector

Promote Agriculture etc

Reinforcing Priorities

Budget 2013-2014 confirms government’s ongoing commitment to its key fiscal plan objectives:

• Protection of essential health care, education, and social services;

• A fiscally sustainable taxpayer-supported debt to GDP ratio that maintains a AAA credit rating.

In support of these priorities, government is continuing its management strategy of prudence and spending discipline.

Budget 2013-2014 focuses on maintaining government services within existing budget allocations for most ministries, requiring them to continue to carefully manage priorities. Incremental funding has been provided to key core services, including healthcare, K-12 education, justice and social supports. Budget reallocation have been made through the draw down of the Contingencies vote and from administrative efficiencies and reduced debt servicing costs. Over the fiscal plan period, government will be redirecting over $1.0 billion to priority areas in ministries.

Estimated Revenue and Expenditure for FY2013-14

Estimating of Revenue Income
The revenue income for FY 2013-14 has been estimated at Tk. 1,67,459 crore which is 14.1 % of GDP, of which NBR tax revenue is Tk. 1,36,090 crore (11.4 % of GDP). Revenue from Non-NBR sources has been estimated at Tk. 5,129 crore (0.4 % of GDP). In addition, Tk. 26,240 crore (2.2 % of GDP) will be collected as Non Tax Revenue (NTR).

Estimating of Expenditure
The total expenditure for FY 2013-14 has been estimated at Tk. 2,22,491 crore (18.7 % of GDP). The allocation for non-development and other expenditure has been estimated at Tk. 1,56,621 crore (13.2 % of GDP). Expenditure for ADP has been estimated at Tk. 65,870 crore (5.5 % of GDP).

Budget Deficit & Financing
The overall budget deficit will be Tk. 55,032 crore which is 4.6 % of GDP. Of this amount, Tk. 21,068 crore (1.8 % of GDP) will be financed from external sources and Tk. 33,964 crore (2.9 % of GDP) from domestic sources. Of the domestic financing, Tk. 25,993 crore (2.2 % of GDP) will come from the banking system and Tk. 7,971 crore (0.7 % of GDP) from savings certificates and other non-banking sources. Govt. increased budget deficit. So, Govt. financed by borrowing from banking system. Bank may become liquidity shortage. Interest rate goes up. That’s why production cost goes up. So, aggregated supply curve shifts inwards.

[pic]

Annual Development Programme

ADP of Tk. 55, 870 crore (5.5% of GDP) has been proposed for FY 2013-14. In the ADP for FY 2013-14, human resource sector (education, health, and other related sectors) will receive 23 %, overall agricultural sector (agriculture, rural development and rural institution, water resources and other related sectors) 25.4 %, power and energy sector 17.2 % and communication sector (road, railway, bridges, and other related sectors) 23.1 % and other sectors 11.3 % of total allocation.

Overview of Fiscal measures

Increasing revenue: The government will be able to collect a significant amount of
Show More

Related Documents: Analysis of Budget Essay

CAFR Budget Analysis Paper

CAFR Budget Analysis Paper April 19, 2007 Introduction The Comprehensive Annual Financial Report (CAFR) that our team chose to analyze is for the State of Ohio. The CAFR is for the fiscal year that ended June 30, 2006. The information that was reviewed for the CAFR budget analysis was: the population, the State of Ohio’s governmental structure, the size of the budget and its interrelationship with the CAFR, major industries located in the…

Words 1220 - Pages 5

Case Analysis: U.S. Budget Essay

Case Analysis of U.S. Budget By: Adrienne Chavis Professor: Frank Pidgeon PA 581- Government Budgeting and Finance Introduction This paper discusses the financial complexities of the U.S. Government and its Department of Education. The purpose of this paper is to analyze the funding level of the U.S. Government and its Department of Education. It also reviews several trends that are identified at 2009 actual, 2010 and 2011 amounts for outlays and receipts, and relationship to the Gross Domestic…

Words 1953 - Pages 8

School Budgets 101 Analysis

I find that the main problem presented in the the video of School Budgets 101 was the fact the federal government gives very little to states and local districts in order to support education. This fact may explain why so many teachers across the nation have been protesting for more funding for schools. Over the past few months anyone that follows the news have seen the phenomenon of teachers from West Virginia, Arizona and North Carolina, to name a few, marching on their state capital demanding…

Words 1010 - Pages 5

Essay on Hong Kong Budget Airline Analysis

Kong Budget Airline Industry Analysis By Jaeyeong Ahn 1155032046 Xie Jianting 1155001899 Shi Weiran 1155002072 Tan Jiayi 1009609441 Gao Jingya 1155001997 TABLE OF CONTENTS 1. Introduction 2. Budget Airline Industry 2.1 Definition & Pricing Model 2.2 Common Practices to Lower Overall Costs 2.3 Development of Budget Airline in America, Europe and Asia 3. Hong Kong Market Analysis 3.1 Competitive Landscape 3.2 Major Budget Airlines…

Words 4113 - Pages 17

Budget Analysis I | GHIAL 2012 Essay

Case Study Assignment Part I Budget Analysis I | GHIAL 2012 As a health care administrator/manager it will be imperative for you to work with the organizational budget but also have an exemplary understanding and purpose of the budget for your health care organization. Medicare payments for health care organizations have a complex set of rules. Medicare has paid skilled nursing facilities on a prospective basis since July 1, 1998. The rate is a per diem rate that is calculated to include…

Words 2257 - Pages 10

Omb Vs Taylor Case Study

CBO The Office of Management and Budget or OMB, is a division that serves as an Executive Office of the President of the United States. It administers the United States federal budget and watches over the performance of federal agencies. The Congressional Budget office or CBO, is part of the legislative branch inside the United States government. It provides economic and budget information to congress. Both the Office Management and Budget and the Congressional Budget office have duties to the process…

Words 514 - Pages 3

Pad 505 Assignment 2 the Capital Budget Essay

PAD 505 ASSIGNMENT 2 THE CAPITAL BUDGET To purchase this visit here: http://www.activitymode.com/product/pad-505-assignment-2-the-capital-budget/ Contact us at: SUPPORT@ACTIVITYMODE.COM PAD 505 ASSIGNMENT 2 THE CAPITAL BUDGET Due Week 6 and worth 280 points Refer the Scenario for Assignments 1–5. Forecast salaries, revenue estimating, and prepare the capital budget. Using the budget from the selected agency, write a five to six (5-6) page paper in which you: 1. Analyze the agency’s…

Words 1709 - Pages 7

Variance Analysis Essay

Variance Analysis HCA-530 Sue P. Gombio Grand Canyon University Variance Analysis is utilized to support the management during the initial stages. It is the procedure of investigating each variance between the actual and budgeted costs to determine the reasons as to why the planned amount was not met, in more detailed explanation (Ventureline, 2012). There are several influences that contribute to the variance report and one is the department’s assumptions, second is the possible risk…

Words 1006 - Pages 5

City of Kelsey Budgeting Essay

Tiera Bristol November 19, 2012 Policing in Kelsey: Budget Report Professor Charles McClelland Abstract Working as the budget director for the mayor of the city of Kelsey, we have recently been getting numerous complaints from the citizens about an increase in crime and also an issue of the public demanding for more police officers. With the population of the city growing daily, the increase of crime is continuing to progress as well. The mayor has informed us that this past year is…

Words 1551 - Pages 7

What Is The Relationship Between Management By Exception And Variance Analysis

Finkler 1. The relationship between management by exception and variance analysis: Variance analysis can be used to evaluate a manager’s performance. Variance analysis can assist managers take corrective measures when their costs are too high. It can also help them change their strategy when they are coming in short in sales. 2. The two possible sources of information to compute the budgeted amount in variance analysis: Data from other companies that use the same process and data form previous…

Words 574 - Pages 3