An optimistic budget

THIS is our preliminary reaction to the proposed budget for the fiscal 2013-14, pending an elaborate analysis of it in the coming days. The size of the budget is around Tk 2.225 trillion, which is 16 per cent higher than the budget for the outgoing fiscal.

Evidently, the proposed budget, the largest till date, has been made an ambitious one keeping an eye to the voters.

But how is the government going to make the big figures on paper see the light of day? More to the point, how is it going to implement the budget when underutilisation of allocations has been a chronic feature with our budgetary management?

The revenue target set at over Tk. 1360 billion is a case in point. It exceeds that of the outgoing fiscal's at Tk. 1120 billion by around 23.14 per cent. It is worthwhile to note that until April last, realisation of the target fell short by about Tk. 41 billion. So, achieving the higher revenue target appears to be a harder proposition, especially in absence of new taxes on income and with fewer duties on commodities for the next fiscal,

If the expected foreign aid of Tk. 60.67 billion is forthcoming, budget deficit will be Tk 480 billion. And to meet overall deficit, the government will have to borrow about Tk. 331 billion from local banks and non-bank sources.

The challenges the budget face include arresting inflation, attracting more investments, implementing many old and new development and so on.

The focus on agriculture, energy and safety net is well taken.