FE Report (June 30, 2011)
The parliament unanimously passed Wednesday the Appropriation Bill- 2011, giving the authority for spending up to Tk 2.324 trillion from Consolidated Fund in fiscal year (FY) 2011-2012, for making necessary development and non-development expenditures by the government.
Finance Minister Abul Maal Abdul Muhith placed the bill before the Jatiya Sangshad (JS) for its approval.
The JS passed earlier on Tuesday the Finance Bill-2011, with some changes as proposed by the Finance Minister to the original one that was placed before the House at the time of the presentation of the budget for fiscal 2011-12 on June 09.
With the passage of both the Appropriations Bill-2011 and the Finance Bill-2011, the national budget of Tk 1.63 trillion for fiscal 2011-2012 received the approval of the JS on Wednesday, a day before the current financial year that concludes on Thursday which is a public holiday this year on account of the holy Shab-e-Meraj.
The members of parliament from the main opposition party were absent in the House so far during the budget session of parliament this year.
Following the proposal mooted on Wednesday in the House by the Finance Ministry for parliamentary approval of appropriations of fund for making necessary development and non-development expenditures of the government in fiscal 2011-12, the ministers concerned placed justification of the expenditure by their respective ministries, through 54 demands for grant. The demands were passed by the House through voice vote.
Some 600 cut-motions were tabled in the house by the opposition members but only an independent lawmaker Fazlul Azim, from Noakhali-6 constituency, spoke on seven proposals. Later, the cut-motions were rejected by voice vote.
Under the appropriations approved Wednesday by the JS for fiscal 2011-12, defence ministry got allocation of Tk 121.22 billion, Home Ministry, Tk 77.30 billion, Primary Education, Tk 89.64 billion, Education, Tk 108.73 billion, Health, Tk 88.88 billion, Local Government and Rural Development, Tk 109.11 billion, Agriculture, Tk 74.10 billion, Food Ministry, Tk 108.30 billion, Roads and Railway, Tk 75.53 billion and Power Division, Tk 71.60 billion.
The discussions in parliament on the national budget for fiscal 2011-12 continued for about 60 hours, in all. The discussions began on June 12.
The parliament unanimously passed Tuesday the Finance Bill-2011, in cooperating tax proposals that were made for fiscal 2011-12.
Under the enacted Finance Bill 2011, undisclosed money will be allowed for investment in stock market, in addition to treasury and infrastructure bonds, at a concessional rate of tax. Registration fees for transfers of commercial buildings and tax at source of export earnings - that were earlier proposed to be raised -- have been reduced.
Agencies add: The Finance Bill-2011 that was unanimously passed by the Jatiya Sangsad included some amendments to the original tax proposals. Such amendments were brought to protect public interests. These included, among others, amendments also the withdrawal of tax on poultry industry.
The Finance Bill has also kept a provision for commencement of Alternative Dispute Resolution [ARD] for resolving income tax-related disputes.
Though several existing laws and provisions relating to tax and duties with financial involvement were amended.
Besides those amendments, there were no other major changes in the proposals that the Finance Minister Abul Maal Abdul Muhith placed in the JS on June 09.
The growth target of the national economy has been set under the national budget for fiscal 2011-12 at 7.0 per cent.
Since members of the opposition were absent in the House, their cut motions were not placed.
The parliament sat at around 11am on all working days during the budget discussions. The budget session of the JS started on May 22.
The finance minister amended his original tax proposals before the approval of the Finance Bill, 2011, in line with the suggestions made by the prime minister. Thus, undisclosed money will be allowed for investment in the stock market at a 10 per cent tax rate, in addition to treasury and infrastructure bonds. The export tax at source for the garment sector will be at to 0.6 per cent.
The budget deficit is projected at 5.0 per cent and revenue target has been set at Tk 1.18 trillion.
The domestic borrowing is estimated at Tk 270 billion while Tk 130 billion will come as external resources.
Annual average rate of inflation is projected at 7.5 per cent for fiscal 2011-12.
Since members of the opposition were absent in the House, their cut motions were not placed.
The parliament sat at around 11am on all working days during the budget discussions. The budget session of the JS started on May 22.
The finance minister amended his original tax proposals before the approval of the Finance Bill, 2011, in line with the suggestions made by the prime minister.
Thus, undisclosed money will be allowed for investment in the stock market in addition to treasury bills and infrastructure bonds, at a 10 per cent rate of tax. The export tax at source for the garment sector will be at 0.6 per cent.
The budget deficit is projected at 5.0 per cent and revenue target has been set at Tk 1.18 trillion.
The domestic borrowing for meeting the budget deficit is estimated at Tk 270 billion while Tk 130 billion will come as external resources.
Annual average rate of inflation is projected at 7.5 per cent for fiscal 2011-12.
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