The Finance and Planning Minister M Saifur Rahman is set to unveil the last budget within the tenure of the present coalition government tomorrow (Thursday). Sources said a number of concerns related to businesses, poverty alleviation, social safety net, health and nutrition and donor pressure are being taken into consideration in the next national budget, which is the second to cover the aims of the Poverty Reduction Strategy Paper (PRSP).

Though encouraging industrial and manufacturing growth, better export performance and strong foreign exchange reserves are positive points for the budget, yet the nagging inflationary pressure and poor implementation of the Annual Development Programme (ADP) are set to undercut the attainment of its goals.

The parliament session on budget begins in the evening today (Wednesday) with Deputy Speaker Akhter Hamid Siddiqui in the chair. He will preside over the session as Speaker Barrister Jamiruddin Sircar is now working as the Acting President.

Finance ministry sources said Saifur Rahman will present his 12th budget of nearly Tk 700 billion for 2006-07 fiscal having a deficit of around five per cent. The revenue earning for the next budget is likely to be set at Tk 525.0 billion, up by 15 per cent of the current fiscal's revenue target of Tk 457 billion.

The allocation for the annual development programme (ADP) has been set at Tk 260 billion -- showing a rise by 21 per cent over that of the previous year -- and the revenue expenditure is likely to be projected at Tk 390 billion for the forthcoming fiscal, sources said.

The budget deficit of about Tk 160 billion is likely to be met by domestic borrowings, said sources. Sources said the Asian Development Bank (ADB) and the World Bank (WB) have committed to provide US$ 3.0 billion as loans, while additional $300 million might come from donors under country assistance strategy (CAS) programme.
The incentives that are now being offered to trade and industry are likely to remain unchanged, sources added.

Social safety net may be widened with the increase of allowances and also the number of beneficiaries for freedom fighters and the elderly. Female students stipend allowance may also be raised. Besides, there will be an allocation of Tk 500 million for facing any abrupt natural calamities like floods and draught.

The government may also increase the tax on mobile subscriber identification module (SIM) and withdraw customs duties on mobile sets.
Sources said the National Board of Revenue (NBR) collected Tk 259.90 billion during the July-April period. The amount was 12.41 per cent higher than that of the corresponding period of the last fiscal.
The current fiscal's budget of Tk 643.83 billion may be revised downward by about Tk 35 billion.

The agriculture subsidy is likely to see an increased allocation from the existing Tk 12 billion. To ensure that agri-subsidy reaches the end-users, the government might propose for the introduction of new mechanisms like Vulnerable Group Feeding (VGF) cards.
The strategy for uplift of rural farm and non-farm sectors, small and medium enterprises (SMEs) and raising of public investment in education, health and nutrition may remain unchanged under the new budget.

Sources said the Jatiya Sangsad is likely to experience heated debates on various issues.
BDNEWS adds: The main opposition Awami League (AL) which returned to the Parliament on February 12 this year after a prolonged boycott, will join the budget session.

The session may witness excited debate as the AL lawmakers will raise many issues, including crises of gas, water and power, Kansat killings, demonstration by the people of Shanir Akhra in demand of water, recent labour unrest at different parts of the country, including Dhaka, Savar and Gazipur, reforms to the Election Commission (EC) and the caretaker government system, resignation of the Chief Election Commissioner (CEC) and two other commissioners, price-hike of essentials, corruption and grenade attack on the rally of Sheikh Hasina.