The growth rate of per capita debt burden is increasing in the country at a higher rate than that of per capita GDP growth, resulting in increased accumulation of debt, says a think-tank.
In FY 2012-13, the rate of growth in per capita GDP and the rate of growth in per capita debt burden stood at 11.6 percent and 13.7 per cent respectively from 28.2 percent and 13.8 percent in FY 2011-12, says Unnayan Onneshan in its August issue of Bangladesh Economic Update.
The research organisation notes that the per capita debt burden is increasing over the years. In FY 2012-13, per capita debt burden of Bangladesh stood at Tk. 3389.84 from Tk. 2982.19 in FY 2011-12.
‘The target for revenue collection in FY 2013-14 is set above the trend observed in the last several fiscal years and the NBR missed its target of revenue collection in FY 2012-13’, observes the organisation.
According to the think-tank, revenue collection target of Tk.167459 crore might not be achieved in FY 2013-14 which was Tk.139670 crore in the last fiscal year.
The growth rate of development and non-development expenditure has been heading towards opposite directions making higher deficit. While the growth rate of non-development expenditure has increased by 21.5 per cent in FY 2013-14 from 14.7 per cent in FY 2012-13, the rate of growth in development expenditure has decreased at 25.1 per cent in FY 2013-14 from 42.0 per cent in FY 2012-13.
Both social and physical infrastructure has received lower budgetary allocation in FY 2013-14.
Unnayan Onneshan notes that the agricultural sector has witnessed a negative rate of growth of 11.9 per cent in FY 2013-14. Like agriculture, total allocation for industry has decreased by 17.1 per cent in FY 2013-14 from 75.3 per cent in 2012-13.
The think-tank also records that in the national budget 2013-14, education and technology, health and family welfare have given lower allocation compared to previous years.
“The size of government expenditure and the size of budget deficit may not necessarily be a matter of concern if deficit has led to augment growth,” adds the Unnayan Onneshan.