Welcome to BDResearch.org Online National Budget 2010-11 Webcasting

Government of Bangladesh is announcing the National Budget 2010-2011 at 1600 hours (BDT Time)

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Honourable Finance Minister is entering the National Parliament for delivering the Budget Speech

Honourable Finance Minister A.M.A Muhit started his Budget Speech

Vision is to achieve Digital Bangladesh

According to the latest forecast, the world economic growth is expected to reach 4.2 percent in 2010 whereas it shrank to 0.6 percent in 2009.

According to the final computation, Bangladesh recorded 5.7 percent growth in FY2008-09 in place of the estimated 5.9 percent growth.

overall economic growth in FY2009-10 will be 6 percent.

The total expenditure was estimated at Tk. 1,13,819 crore (16.6 percent of GDP) in FY 2009-10 budget.

In FY 2009-10, the allocation for cash incentive/subsidy in export sector was scaled up to Tk. 2,100 crore with an increase of Tk. 300 crore.

Tk. 2,500 crore in the budget of FY 2009-10 for supporting PPP (Public Private Partnership).

allocate Tk. 3,000 crore for PPP sector for the next fiscal year.

‘Bangladesh Infrastructure Finance Fund’ (BIFF) is formed to strengthen PPP activities and to encourage the potential investors. An amount Tk. 1,600 crore has already been placed in this fund from the allocation made for PPP this year.

Government is formulating the sixth 5-year plan.

Government has already drafted two documents; a perspective plan for the period up to 2021 and a 5-year plan for the period covering 2010-15.

economic growth will be 6.7 percent in the next fiscal year.

increase revenue collection by 0.5 percent of GDP each year

increase ADP allocation to 6.0 percent of GDP

increase investment to 32.0 percent of GDP.

inflation at 6.5 percent in next year

In FY 2010-11, total estimated revenue income will be Tk. 92,847 crore, which is
11.9 percent of GDP.

the estimated NBR tax revenue will be Tk. 72,590 crore (9.3% of GDP).

The estimated tax revenue from non NBR sources will be Tk. 3,452 crore

From non-tax sources Tk. 16,805 crore (2.6% of GDP).

FY 2010-11, the total expenditure has been estimated at Tk. 1,32,170 crore.

21.2 percent is allocated for overall agriculture sector (agriculture, rural development, rural institutions and water resources)

15.78 percent for power and energy

15 percent for communication (roads, railway, bridges, river transport, civil aviation and tele-communication)

24.2 percent for human resources (education, health, science and technology).

33.3 percent of total outlay has been allocated to social infrastructure of
which, 23.9 percent is allocated to human development (education, health,
science and technology and other related sectors).

30.4 percent of total outlay has been proposed for physical infrastructure of
which 16.9 percent goes to wider agriculture and rural development, 7
percent to overall communication sector and 4.6 percent to power and
energy.

21.1 percent of total outlay has been proposed for general service sector that includes an allocation of 9.6 percent of total outlay for PPP projects, cash incentives for various industries and implementation of last year’s pay commission.

15.1 percent will be spent for interest payment and net lending

Government has taken steps to produce 9,426 MW power by 2015.

837 km of power grid lines, 17 sub-stations and more than15,000 km of distribution lines in next 3 years

The Renewable Energy Policy has already been prepared

‘Sustainable Energy Development Agency’ (SEDA) has been set up

allocate Tk.6,115 crore for power and energy sector development and non-development combined, for the next financial year.

allocate Tk. 4,000 crore for subsidy in agricultural sector in the budget for
FY2010-11.

FY2010-11, targets have been fixed to produce and distribute 1,18,450 MT

In 2010-11, adopted schemes to grow hybrid paddy in 12 lakh hectares and salinity resistant Bri-47 in 50 percent of salinity affected 10 lakh hectares of land.

allocation of Tk. 300 crore in Expansion of Irrigation and Removal of Water Logging

target of distribution of agricultural loan to Tk. 12,000 crore.

Tk. 412 crore for Agricultural Research Fund

‘Agriculture Insurance’ scheme to provide the small and medium farmers

allocate Tk. 7,492 crore, for development and nondevelopment budget combined, for the Ministry of Agriculture in FY 2010-11.

In FY2010-11, production target for cattle and poultry vaccine has been fixed at 41.63 crore doses.

Tk. 861 crore, development and non-development budget combined, for fisheries and livestock sector

4-Year Gorai River Dredging Project with an estimated cost of Tk. 942.14 crore

Taka 1,588 crore as block allocation in the ADP for dredging and construction of Padma Bridge.

construction of 270 km flood protection and coastal embankment, repairing of another 2,520 km, construction/repairing of 1,600 flood control structures, maintenance of 40 km new river banks and repairing 75 km in FY 2010-11.

bring 15,000 hectares of land under irrigation facility in FY2010-11.

undertaken to protect 20,000 hectares of land from salinity every year.

undertaken to recover 18,000 hectares of land in the coastal areas by constructing embankments.

rehabilitate 16,000 poor families in about 11,055 hectares of land.

allocate Tk. 2,049 crore, development and non-development budget combined, for the water resources sector.

For FY 2010-11, plans to construct 3,900 km new roads and maintain 16,500 km roads

targets for construction of 20 cyclone shelters, development of 207 rural hat-bazars and carrying out afforestation along 18,600 km roads in FY2010-11.

‘One House One Farm’ programTk. 1,197 crore estimated cost

supply of pure and safe drinking water for all by 2011.

construct 2 lakh water-sources during FY 2010-11

In FY2010-11, install another 97 deep tube wells and reconstruct 63 km of water supply line in Dhaka city.

1.9 lakh sets of sanitary latrine will be produced and installed in FY2010-2011.

aim to raise birth registration to 100 percent.

allocate Tk. 10,309 crore, development and nondevelopment budget combined, for rural development and local government in the next fiscal year. This allocation is 18.8 percent higher than that of FY 2009-10.

32 km long Elevated Expressway from Uttara to Jatrabari to ease the traffic jams in Dhaka city.

Circular Railway would be installed around Dhaka city

allocation of TK. 7,549 crore, development and nondevelopment budget combined, for FY 2010-11 for Roads and Railways Division and Bridges Division. This is 26.6 percent higher than the revised budget of the last fiscal.

develop and operate 12 land ports under BOT (Build, Operate and Transfer) basis.

Launching Circular Waterways around Dhaka city

4409 Union Parishad bhaban will be brought under optical fiber network.

1 crore land phone connections across the country

8 thousand rural post offices in phases into Community Information Centres (CIC) within a short span of time.

Bangabandhu Sheikh Mujib International Airport at the outskirts of Dhaka.

purchase 10 new generation air crafts within 2013-2015.

allocation of TK. 31,562 crore for FY2010-11, development and non-development
combined, for the education and technology and the health sectors. This is 23.9 percent of the total budget and 17.7 percent higher than the budget for the current fiscal.

Government has already approved the National Education Policy 2010

Education up to Class VIII has been made free and compulsory.

establish IT-based madrashas for modernization of this system of education

universities at Barishal, Rangamati and Gopalgonj has begun

establishing 1500 primary schools in areas without schools

Government will continue with distribution of stipend amounting TK. 4,035 crore from its own resources till 2013

allocate TK. 17,959 crore in the budget for FY2010-11, development and non-development combined, for the Ministry of Education and Ministry of Primary and Mass education. This allocation is 13.5 percent higher than the revised budget of the current fiscal.

bring all Ministries/Divisions/ Directorates/Districts/Upazilas under a public network.

Controller of Certifying Authority (CCA) has been set up and has started functioning to launch digital signature for introducing e-commerce by 2012.

allocation of TK. 112 crore in FY2010-11 from non-development budget.

allocate Tk. 200 crore in the existing Equity and Entrepreneurship Fund to promote entrepreneurship in the IT sector.

recruitment of 20,391 Health Assistants

recruitment of 4,133 doctors on ad-hoc basis

recruitment of 2,627 nurses

allocate Tk. 8,149 crore for FY 20010-11, development and non-development combined, for the Ministry of Health and Family Welfare.

22,000 flats for middle and lower middle income groups at Uttara extended project area on 21 May 2010.

National Child Labor Elimination Policy 2010 to reduce prevalence of child labor.

set up 6 Child Development Centers in big cities

establish 10 more day care centers. Out of these, 7 are for lower income and 3 for middle income working mothers.

allocate Tk. 1241 crore, development and non development combined, for the next fiscal including Tk. 125 crore as block allocation against various programs for women empowerment and children welfare. About 25.9 percent ( 4.4 percent of GDP) of the total proposed expenditure in FY2010-11 will be allocated for ensuring gender parity.

allocation for honoraria to Tk. 61.11 crore for freedom fighters in the next fiscal year.

construction of the Freedom Fighter Complex building in all districts will begin from FY 2010-11.

Re-vitalizing Freedom Fighter's Welfare Trust: Tk. 17.18 crore.

In FY2010-11, the target for manpower export has been set at 5, 77,000 workers.

allocated Tk. 70 crore Immigration and Skill Development Fund

National Skill Council under the chair of the Hon’ble Prime Minister

Cultural Centers will be established in New York and Kolkata.

allocate Tk. 314 crore, development and non-development combined, to continue with the existing programs including a special allocation of Tk. 100 crore for development of indigenous culture.

arranging 2,400 income generation training courses and transfer of different resources, the lives and occupations of Garo communities of 6 Garo inhabited upazilas of 4 districts will be improved.

79,452 persons will be trained and provided with temporary employment.

10 percent cash incentive has been given from the public exchequer to support export of jute goods.

establish a ‘Women Entrepreneur Dedicated Desk’

The bank interest rates have been lowered to 12 percent and from 15-16 percent for
importing daily essential food stuff and to 13 percent in case of other items.

allocate Tk. 700 crore for Capacity Building in Disaster Management

Bangladesh Climate Change Resilience Fund (BCCRF) has been created with an amount of US$ 110 million.

Medical Waste Management and Administration Act 2010 and framed Medical Waste Management Rules 2010

widen the beneficiary coverage to 24,75,000 and allocate Tk. 891 crore to
support Old Age Allownce.

increase the number of beneficiaries to 2,86,000 and allocate Tk. 102.96 crore forallowances for the Insolvent Disabled persons.

allocate Tk. 30 crore for allowances for lactating mothers of low income working group in urban areas.

allocate Tk. 66.40 crore and Tk. 225 crore respectively in the next fiscal, for two programs namely Maternal Health Voucher Scheme and National Nutrition Program.

Tk. 2 crore for Acid Burnt Women and Rehabilitation of Physically Disabled and Women Selfemployment Fund

Widow, Divorced, and Distressed Women Allowances Scheme is Tk. 331.2 crore

allocate Tk. 73.13 crorefor programs for the welfare of street children and orphans.

allocate Tk. 33.32 crore for Endowment Fund for Disabled Service and Assistance Centers

allocate Tk. 5,726.25 crore for Food Security programs such as open market sale
of food at low prices, food for work, VGF, VGD, TR (food), GR (food) and food assistance for Chittagong Hill Tracts.

allocate Tk. 1,000 crore forEmployment Generation for the Hard Core Poor

allocate Tk. 19,497 crore for Micro Credit Programs of Different Government Organizations

621.6 lakh man months of employment will be created

new law titled ‘Insurance Act 2010’ to update the ‘Insurance Act 1938’ has been enacted.

frame ‘Bangladesh Economic Zones Act 2010’ which will encourage entrepreneurs to set up industries in these zones by providing various supports along with development of physical infrastructure.

allocate Tk.10,695 crore for defense sector

Performance Based Evaluation System (PBES) has been introduced in the Ministry of Establishment

allocate Tk. 3.08 crore in favor of the Press Institute to provide training to the journalists.

next fiscal year shows that the government expenditure is going to be 16.9 percent of GDP.

A specific software (Bangladesh VAT system, e-VAT) will be used

expand annual turnover limit for turnover tax up to Tk. 60 lakh.

withdraw VAT from plastic and rubber made sandals up to the price limit of Tk. 80 per pair.

reduce import duty from 12 percent to 5 percent and withdraw 5 percent regulatory duty on milk powder.

impose specific rate of duty on raw sugar and refined sugar at the rate of Tk. 2,000 and Tk. 4,000 per metric ton respectively.

continue the PSI system until December 31, 2011.

extend the customs duty and value added tax exemption facilities granted earlier to the import of de-inking chemical and waste paper respectively for another year.

impose tariff value for the assessment of scratch card, optical frame (both metal and
plastic) and cracker biscuit.

amend descriptions or HS Codes or statistical units for six categories of product.

revise the First Schedule of the Customs Act, 1969 by having changes in 677 HS Codes including elimination of 328 unnecessary Codes.

install ASYCUDA++ software-based assessment system in all the important land customs stations