Bangladesh - Public finance



The fiscal year runs from June to July. In 1993, Bangladesh successfully completed a three-year IMF structural adjustment program. This program resulted in growth in the money supply of 11% in 1993, 15% in 1994, and 16% in 1995. In addition, government spending was curbed by a decline in subsides to money-losing parastatals and the value added tax (VAT) continued to generate higher than predicted revenues for the government, with collections up 18% over 1994. In 1996, the government reported that exports were up, GDP grew by 4.4%, and tax revenues climbed 9% to $3.1 billion. Encouraged by the good news, the government proposed a 1997 budget that would reduce domestic taxes, further cut import duties, and provide special incentives for foreign investors. The government stressed, however, a continuing need for foreign aid. International aid disbursements in 1996 totaled $1.5 billion, down from $1.7 billion in 1995. Almost half of government revenues come from foreign aid. In 1999, primarily because of flooding, foreign aid increased by 19% from $1.3 billion in 1998. The global economic downturn of the first few years of the new millenium has had devastating effects on Bangladesh's economy. Exports had been growing 18% a year prior to the recession; they are now growing only 8% a year. The World Bank and the IMF predict that GDP will grow approximately 4.5% in the next 5 years, well short of the 7–8% they believe it needs to lift itself out of poverty.

The US Central Intelligence Agency (CIA) estimates that in 1999/2000 Bangladesh's central government took in revenues of approximately $4.9 billion and had expenditures of $6.8 billion. Overall, the government registered a deficit of approximately $1.9 billion. External debt totaled $17 billion.

Also read article about Bangladesh from Wikipedia

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