Budget 2022-23 has been presented. All the information about the budget such as increase or decrease in taxes, increase or decrease in price, how much money will be made in any sector etc. were discussed.
Before discussing the budget 2022-23, we should know what is the budget, and how is the budget prepared? Where does the budget money come from? Etc.
What Is Budget?
The budget of a country is the calculation of the potential income and expenditure of that country. The government runs the whole country. There is a lot of spending in different sectors to run the country. For example, the employees who work for the government have to pay their salaries, moreover, a lot of money is needed in the education sector, medical sector, transport sector, etc. Again, various initiatives have to be taken for the development of the citizens. All this costs a lot of money. So, budget is the name of the plan where and how to spend in a particular financial year in running the country.
Accounts of income and expenditure are not only prepared by the state. But every man calculates his own income and expenditure. However, there is some difference in calculating the state budget with the individual. That is, the person calculates the expenditure based on his own income. But the state does just the opposite. The state first determines the potential sectors of expenditure and then decides where the money will come from. That is, the individual spends based on income and the government plans to make income based on expenditure. Budget money is earned from common people’s taxes. If there is a deficit in the possible budget, then the government increases taxes on various sectors. Even if there is a budget deficit, it can borrow money from other countries.
Type Of Budget
With regard to income and expenditure, the budget of a state or country is usually of two types.
- Balanced Budget
- Unequal Budget
Balanced means equal. So if the total income and total expenditure in the government is equal then it will be a balanced budget. This means that the potential income should be equal to what the government plans to do in total.
Unequal budget is the mismatch between budget expenditure and income. Many times government expenditure is much more than income. The unequal budget can again be divided into two ways. That is surplus budget and deficit budget.
If the income is more than the government expenditure, it is called a surplus budget.
If the expenditure is more than the revenue of the government, it is called a deficit budget.
Now the question is, which budget would be best for a country. A balanced budget is supposed to be good for every country. Every country wants to plan a balanced budget. However, it is not possible for all countries to formulate a balanced budget every year. Economists think that it is not good to have a balanced budget on a regular basis, but the budget should be adjusted in line with the economic situation. Because, a balanced budget reduces interest rates, and increases savings and investments. It also reduces the trade deficit. In this case, the economy moves forward in the long run.
Budget History Of Bangladesh
In the history of Bangladesh, a total of 50 budgets have been formulated from 1971 to 2021. The budget has been increasing every time. Compared to last year, the size of Bangladesh’s budget has also increased in the 2022-23 financial year. In the 50 years since the independence of Bangladesh, a total of 13 budgets have been presented by 11 finance ministers and financial advisers. Looking at the size of the past budget, one can understand how much progress Bangladesh has made. In 1972, the amount of the first budget was only 786 crore taka. In the 49th budget 2020-21 financial year, its amount is 5 lakh 68 thousand crore taka and in the last 50th budget 2022-23 financial year it has been 6 lakh 3 thousand 681 crore taka.
After independence, on 30 June 1972, Tajuddin Ahmed announced the first budget. On the same day, he presented the budgets for the two fiscal years 1971-72 and 1982-83. Then he gave the budget twice more and at the end of all, the amount of his announced budget stood at Tk 1,084 crore. After the first budget, it took 3 years to cross one thousand crores.
We know that so far a total of 13 people have presented the budget, among them Abul Maal Abdul Muhith and M Saifur Rahman have given the budget most times. Both of them have given 12 budgets so far. However, Abul Maal Abdul Muhith has given 10 consecutive budgets. He gave the first budget in 1982-83 and the last in 2018-19. First of all, his budget was Tk 4,738 crore and after increasing it by about Tk 4 lakh crore, his last budget amount stood at Tk 4,64,573 crore.
Finance ministers use different types of slogans or quotes in their budget speeches. The same slogan or quote is not used by two finance ministers. However, this has happened once in the case of announcing the budget of Bangladesh. M Saifur Rahman ended his speech at the end of the budget announcement in 1970-71 by saying, “I remember a saying of one of the oldest countries in the world:” A journey of a thousand miles begins with a single step. ” Let us come together and take that one step. ”Then, at the end of the 1996-97 budget speech, Finance Minister Shah AMS Kibria said almost the same thing. A Chinese proverb rightly says, “A journey of a thousand miles begins with a small step.” No matter how inaccessible our destination is, we have started moving.
The presentation of the budget twice in the same financial year has also happened in Bangladesh. Former caretaker government’s financial adviser Wahiduddin Mahmud presented the budget for the 1996-97 fiscal year, but Shah AMS Kibria later presented a new budget, keeping the basic financial structure in place through elections.
In Bangladesh, the national budget is announced in June every year. Today, June 3, 2021 at 3 pm in the National Assembly, Finance Minister AHM Mustafa Kamal presented the proposed budget for the fiscal year 2022-2023. The amount of this proposed budget is 6 lakh 78 thousand 064 crore taka. Which is 17.5 percent of the total GDP. That budget is the 51st budget of the country. Moreover, the 23rd budget of the Awami League government. Finance Minister AHM Mustafa Kamal’s third budget. The title of the budget for the fiscal year 2022-23 is ‘Bangladesh on the path to a strong future with a focus on livelihood’. So let’s take a look at the budget of Bangladesh 2022-23 fiscal year.
At a glance of Budget 2021 of Bangladesh:
- Fiscal Year: 2022-23.
- Budget Title: ‘জীবন-জীবিকায় প্রাধান্য দিয়ে সুদৃঢ় আগামীর পথে বাংলাদেশ’ / ‘Bangladesh on the path to a strong future with a focus on livelihood’.
- Number: 51st.
- Amount: 6 lakh 78 thousand 064 crore taka.
- GDP: 17.5%.
- Targeted Revenue:
- Annual Development Program:
- Targeted Growth:
- Tax-free income limit:
- Corona Tackle:
- Deficit Financing Will Come From Foreign Sources:
- Internal Sources:
- Allocation In The Education Sector:
The Price Of The Products That May Rise
Foreign rods and similar products
Products That Can Be Priced Lower
Domestic LPG cylinder
Prices And Duties On Tobacco Products
The cost to smokers is going to increase. Because in the budget of 2022-23 financial year, the finance minister has proposed to increase the price of cigarettes. In this case, it is proposed to reduce the use of tobacco products and increase revenue. Such as:
- The price of a low level 10-stick cigarette is Tk 40 or more and the supplementary duty is 57%.
- The price of a middle level 10-stick cigarette is Tk 65 or more and the supplementary duty is 65%.
- The price of a high level 10-stick cigarette is Tk 111 or more and the supplementary duty is 65%.
- The price of a very high level 10-stick cigarette is Tk 142 or more and the supplementary duty is 65%.
The Finance Minister has proposed to keep the prices and tariffs for locally made filter-separated (excluding machine aided) bidi makers as in the previous year.
- The price of 25 sticks without filter is 18 taka, the price of 12 rods is 9 taka and the price of 8 rods is 6 taka and the supplementary duty is 30%.
- The price of 20 sticks of filtered bidi is 19 taka and 10 sticks is 10taka and the supplementary duty is 40%.
Jorda and Gul
- The price of 10 grams of Jorda is 40 taka and the supplementary duty is 55%.
- The price of 10 grams of Gul is 20 taka and the supplementary duty is 55%.
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Private Colleges And Universities Have To Pay Taxes
According to the budget proposal for the fiscal year 2022-23, private colleges or universities will have to pay 15% income tax. However, since 2010, it has been imposed on all these private institutions. However, due to some cases, it was not possible to collect tax from private colleges or universities. Now, as the case has been settled, the finance minister has proposed a new tax of 15% on the income of these non-governmental organizations.
The budget proposal said, “The general tax rate applicable through notification has been reduced to 15 per cent of the income from private universities, private medical colleges, private dental colleges, private engineering colleges or private colleges teaching only in information technology.” In this great parliament, I am proposing to increase this tax rate to 15 percent through law. ‘
The Company’s Tax Rate Reduction Proposal
Finance Minister AHM Mustafa Kamal has proposed a reduction in the company’s tax rate in the 2022-23 budget. In the case of companies registered or unregistered in the stock market, it has already proposed a reduction in taxes. The current proposed company tax amount is:
- The tax rate of companies currently listed on the stock exchange is 22.5% as against 25%t earlier.
- The tax rate of unregistered companies in the stock market is 30% which was 32.5% earlier.
- The tax rate for an individual company is 25% which was earlier 32.5%.
The rate of registered and unregistered mobile financial companies has increased in the stock market.
- The tax rate of registered mobile financial companies has increased from 32.5%t to 37.5%.
- The tax rate on unregistered companies has risen from 32.5% to 40%.
In addition, banks and insurance companies registered in the stock market, unregistered banks and financial institutions, merchant banks have been proposed to keep the tax rate unchanged. At present their tax rates are 37.5%, 40%, and 37.5% respectively.
Tax Release Of ‘Made in Bangladesh’ Brands
“Made in Bangladesh” brands can be tax-free for 10 years subject to conditions, the Finance Minister has proposed in the budget 2022-23.
The budget proposal said, “The government is committed to establishing the Made in Bangladesh brand in the interest of developing mega industries in the country and accelerating the import of alternative industries.” To this end, I am proposing to give 10 years conditional tax exemption to automobile-three wheeler and four wheeler manufacturing companies in Bangladesh and another 10 years conditional tax exemption.
In addition, some home appliances and kitchen appliances products and light engineering products manufacturing companies are subject to conditional 10-year tax exemption.
Must Need TIN To Buy Savings Certificates Worth More Than Two Lakh Taka
Buying Sonchoypotro is a profitable business. That is why many people buy Sonchoypotro of different prices. This time, in the budget of 2022-23 financial year, the obligation of accepting TIN has been imposed to buy Sonchoypotro above Taka 2 lakh and to open a postal savings account.