Budget of last 14 years of Awami League government

In 2006, the Awami League launched a strong movement against the BNP-led four-party coalition government, demanding fair elections. At that time, the caretaker government under President Yazuddin Ahmed, along with Election Commissioner MA Aziz, was involved in the voter list process. Facing mass agitation, power eventually shifted to the caretaker government of Fakhruddin Ahmed, which was influenced by the military.

Over the next two years, this government worked on organising a free and fair election, including creating a voter list with photographs. Finally, after much political drama, the Bangladesh Awami League-led coalition won 263 seats in the December 29, 2008 election. During that period, the Awami League successfully attracted young voters by promising a vision of Digital Bangladesh in their manifesto. In that election, the four-party alliance secured 33 seats, with the BNP becoming the main opposition party.

The Awami League held great expectations from the general public and aimed to fulfill them by incorporating various surprises in the budgets announced over the last 14 fiscal years. Among these surprises, the most significant was the 'implementation of large development projects'.
It can be said that Bangladesh has not only dreamed of big dreams for 14 years, but has been able to fulfill those dreams. Undertake and implemented development projects like Padma Bridge, Metrorail, Nuclear Power Plant, Large Coal Power Plant, Bangabandhu Tunnel, Bangabandhu Rail Bridge, Elevated Expressway, Airport III Terminal, Deep Sea Port. At the same time, Digital Bangladesh has been made worthwhile by digitising the entire country. Now the process of converting that digital Bangladesh into Smart Bangladesh has been started. The upcoming budget is expected to have a roadmap to implement Smart Bangladesh and Vision 2041.

The first budget of the grand coalition government 2009-10
After the grand coalition government assumed responsibility in December 2008, the first phase of the budget was announced in June 2009. Late Abul Mal Abdul Muhith, while announcing the budget, indicated to take a comprehensive program for the development of electricity and energy infrastructure. A budget of 1 lakh 13 thousand 170 crore taka was announced in that financial year. But then the whole world was under the grip of recession. As a result, the government had to emphasize the implementation of development programs as well as combating the recession.
A total budget of 83 thousand 319 crore taka was announced for management and non-development; But the revised budget stood at 82 thousand 23 crores at the end of the financial year. 30,500 crores was earmarked for the Annual Development Program (ADB) that year; But at the end of the fiscal year, ADB cut Tk 28,500 crore.

In December of that year, Mr. Muhith highlighted the progress of the budget implementation in the National Parliament. He stated, "I mentioned when presenting the budget for the fiscal year 2009-10 in this great Parliament that it was the first step towards realizing the government's vision. I also mentioned that the budget proposals were formulated considering three factors: preparedness for recession in the country, analysis of resource availability, and our capacity to implement development programs. Simultaneously, I emphasized that we must consider the immense expectations of the people. I ensured that the budgeting process was driven not by passion or ambition, but by realism and a firm sense of purpose."

Budget 2010-11
In November 2009, Bangladesh's foreign exchange reserves surpassed $10 billion for the first time. By June 1, 2010, the reserves had reached $10.2 billion. The Finance Minister highlighted this achievement in his budget speech. However, due to the failure of the BNP and subsequent governments to build power plants, the country faced severe load shedding. This issue posed a significant challenge for the government within a year of taking office. In his 2010-11 budget speech, the Finance Minister acknowledged that his government had not made significant progress in the power sector during the previous fiscal year (2009-10), attributing this to investment impediments in the sector.

In response, the government presented a plan for power sector development within the budget, which led to the establishment of quick rental power plants without tenders, a move that was both highly discussed and criticized.

The late Finance Minister Abul Mal Abdul Muhith presented a budget of Tk 132,170 crore for the fiscal year 2010-11, with Tk 38,500 crore allocated for the annual development program. The economic growth target for that year was set at 6.7 percent.

Budget for the Financial Year 2011-12
During the financial year 2011-12, Bangladesh faced a decline in foreign exchange reserves due to the global recession. The government made continued efforts to increase reserves through foreign borrowing. The total expenditure for the budget was estimated at Tk 1,63,590 crore, with underdevelopment costs accounting for Tk 1,17,590 crore and the annual development program (ADP) expenditure set at Tk 46,000 crore.

In September of that year, Abul Mal Abdul Muhith, the Finance Minister, provided the first quarterly report on the budget implementation. He stated, "Foreign exchange reserves at the end of the 2010-11 fiscal year were about 10.8 billion US dollars. During the same period of the current financial year, the foreign exchange reserves stood at 9.8 billion US dollars, which could cover approximately 3.6 months of import expenses. I had earlier informed the Parliament (December 2010) that foreign exchange reserves might decline due to increased import expenditure driven by a rise in public and private investments and escalating global food and fuel prices."

This statement reflected the government's realistic approach to budgeting and financial management in the face of global economic challenges, highlighting both the achievements and ongoing issues in maintaining economic stability.

2012-13 Budget
The preparations for the 2014 elections were evident in the 2012-13 budget. In the first quarter report of the budget implementation, the government presented a comparative picture of the country's economic condition from 2009-10 to 2012-13. It was noted that the average electricity production increased from 4,000 MW in the 2009-10 fiscal year to 5,500 MW in the 2011-12 fiscal year. A total of 3,900 MW of electricity was newly added to the national grid since the government assumed power until December 2012.

In the fiscal year 2011-12, export income during July-December was $11,775 million. In the same period of the 2012-13 fiscal year, export income increased to $12,600 million.

Compared to remittances of about $6,680 million in the July-December period of the 2011-12 fiscal year, remittances in the 2012-13 fiscal year were $7,400 million.

Foreign exchange reserves in December 2011 were $9,635 million. At the end of December 2012, foreign exchange reserves stood at $12,751 million.

The inflation rate was 10.7 percent in December 2011; by the end of December 2012, the inflation rate had decreased to 7.6 percent (point-to-point basis).

The report provides a glimpse of the economy gaining momentum. However, Bangladesh faced challenges both domestically and internationally, such as the trials of war criminals and the effects of the global recession. Additionally, there were obstacles in the country due to direct support for the BNP-Jamaat-e-Islami.

For the fiscal year 2012-13, the total expenditure estimate in the budget was Tk 1,91,731 crore. Of this, Tk 1,36,731 crore was allocated for other expenditures, including underdevelopment costs. The annual development program expenditure for that year was set at Tk 55,000 crore.

Budget for the Financial Year 2013-14
The government presented the budget ahead of the 2014 elections, marking the last budget of that administration. A budget of Tk 2,22,491 crore was presented that year. This period was marked by significant challenges: the ongoing trials of war criminals, the BNP and its allies demanding elections under a caretaker government, and tensions between the government and donors due to allegations of corruption by the World Bank in the Padma Bridge project. As a result, the opportunity for obtaining cheap loans was diminishing.

Despite these obstacles, the government allocated Tk 6,852 crore for the construction of the Padma Bridge in the budget. Contrary to claims that the government made additional allocations in the annual development program (ADP) due to the election, the ADP allocation followed a general pattern of increase. The ADP allocation for 2013-14 was Tk 65,870 crore, compared to Tk 55,000 crore in 2012-13 and Tk 46,000 crore in 2011-12. For 2013-14, it was proposed to set non-development expenditure at Tk 1,56,621 crore.

Budget for the Financial Year 2014-15
The Awami League came to power by organizing elections amidst significant opposition, rather than intense competition. Following the 2014 elections, the BNP and opposition parties continued to protest and create unrest across the country. Abul Mal Abdul Muhith presented the first budget of the Awami League's second term in a challenging environment.

For the financial year 2014-15, the total expenditure target was set at Tk 2,50,506 crore. Of this, non-development expenditure was set at Tk 1,70,191 crore, while the ADP expenditure was fixed at Tk 80,315 crore. This represented an increase of about Tk 14,500 crore over the ADP allocation of the 2013-14 fiscal year. Whereas the government had increased the ADP allocation by an average of Tk 10,000 crore in the previous three budgets, the ADP allocation was increased by one and a half times in a single move for 2014-15.

Budget for the Financial Year 2018-19
In the fiscal year 2018-19, the total expenditure in the budget was estimated at Tk 4,64,573 crore, which represented 18.3 percent of GDP. When considering the allocation of Tk 7,869 crore for autonomous bodies in the annual development program (ADP), the budget size stood at approximately Tk 4,72,442 crore, equating to 18.6 percent of GDP. The total allocation for other sectors, including non-development expenditures, was Tk 2,91,573 crore (11.5 percent of GDP), and the allocation for the ADP was Tk 1,73,000 crore.

Budget for the Financial Year 2019-20
Due to the impact of Covid-19, the entire world experienced significant turmoil. Despite the pandemic, the government of Bangladesh did not shut down garment factories, the main export sector. Instead, it provided incentives and low-interest loans to help the sector overcome the challenges posed by the pandemic. Additionally, investment in the health sector was increased to address the health crisis.

The total expenditure for the financial year 2019-20 was estimated at Tk 5,23,190 crore. In the revised budget, this expenditure was reduced by Tk 21,613 crore to Tk 5,01,577 crore. The size of the ADP was reduced from Tk 2,02,727 crore by Tk 9,806 crore to Tk 1,92,921 crore. Meanwhile, due to Covid-19, there was an increase in expenditure for the health sector and the implementation of various incentives. However, by saving costs in less critical sectors, the estimate for other expenses, including management, was reduced by Tk 11,813 crore.

Budget for the Fiscal Year 2021-22
In the fiscal year 2021-22, the government organized two significant events: the birth centenary of Mujib and the golden jubilee of independence. The total budget size or expenditure was estimated at Tk 6,03,681 crore, which is 17.5 percent of GDP. The total allocation for management and other sectors was Tk 3,78,357 crore, while the allocation for the annual development program (ADP) was Tk 2,25,324 crore.

Budget for the Fiscal Year 2022-23
In the fiscal year 2022-23, the total government expenditure was initially estimated at Tk 6,78,064 crore. However, considering the overall progress of expenditure until April, the revised budget proposed reducing government expenditure by Tk 17,557 crore, bringing it down to Tk 6,60,507 crore. Within this, the ADP size was reduced from Tk 2,46,066 crore to Tk 2,27,566 crore.

Budget for the Fiscal Year 2023-24
The budget for the fiscal year 2023-24 announced a goal to transition from a digital Bangladesh to a smart Bangladesh. The proposed revenue target for the fiscal year was estimated at Tk 5 lakh crore. Of this, Tk 4,30,000 crore was proposed to be collected through the National Board of Revenue, and Tk 70,000 crore from other sources. The total budget size was estimated at Tk 7,61,785 crore, which is 15.2 percent of GDP. Out of this, Tk 4,36,247 crore was proposed for management and other sectors, and Tk 2,63,000 crore was allocated for the annual development program.