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    ECO104.16 Assignment

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    Ridwan Ahmed
    The Bangladesh government budget for 2018 had a deficit of 4.8% of GDP. Major areas of government expenditure include education, interest payments, transportation, agriculture, and defense. The government is focusing on social safety net programs as well as nine mega infrastructure projects including the Padma Bridge and Rooppur Nuclear Power Plant. While some funding comes from domestic sources, foreign borrowing is also used to finance large projects that require significant investment. Increasing government expenditure has boosted investment and reduced unemployment, shifting the aggregate demand curve to the right and creating inflationary pressure in the economy.

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    ECO104.16 Assignment

    Uploaded by

    Ridwan Ahmed
    72 views5 pages
    The Bangladesh government budget for 2018 had a deficit of 4.8% of GDP. Major areas of government expenditure include education, interest payments, transportation, agriculture, and defense. The government is focusing on social safety net programs as well as nine mega infrastructure projects including the Padma Bridge and Rooppur Nuclear Power Plant. While some funding comes from domestic sources, foreign borrowing is also used to finance large projects that require significant investment. Increasing government expenditure has boosted investment and reduced unemployment, shifting the aggregate demand curve to the right and creating inflationary pressure in the economy.

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    The Bangladesh government budget for 2018 had a deficit of 4.8% of GDP. Major areas of government expenditure include education, interest payments, transportation, agriculture, and defense. The government is focusing on social safety net programs as well as nine mega infrastructure projects including the Padma Bridge and Rooppur Nuclear Power Plant. While some funding comes from domestic sources, foreign borrowing is also used to finance large projects that require significant investment. Increasing government expenditure has boosted investment and reduced unemployment, shifting the aggregate demand curve to the right and creating inflationary pressure in the economy.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    72 views5 pages

    ECO104.16 Assignment

    Uploaded by

    Ridwan Ahmed
    The Bangladesh government budget for 2018 had a deficit of 4.8% of GDP. Major areas of government expenditure include education, interest payments, transportation, agriculture, and defense. The government is focusing on social safety net programs as well as nine mega infrastructure projects including the Padma Bridge and Rooppur Nuclear Power Plant. While some funding comes from domestic sources, foreign borrowing is also used to finance large projects that require significant investment. Increasing government expenditure has boosted investment and reduced unemployment, shifting the aggregate demand curve to the right and creating inflationary pressure in the economy.

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    Assignment on

    Budget of Bangladesh Government


    Submission Date: 08-08-2018

    Done by,

    Aninda Singha Sourav

    ID: 1711304030

    Prepared for,

    Ms. Nazneen Imam (Nnm),

    Lecturer,

    North South University


    Budget of Bangladesh Government:

    Bangladesh Government Budget is deficit equal to 4.80 percent of the country's


    Gross Domestic Product in 2018. Government Budget in Bangladesh averaged
    -3.39 percent of GDP from 1991 until 2017.

    Components of Government Budget Expenditure:

     Education and Technology


     Interests
     Transport and Communication
     LGRD
     Fuel & Energy
     Health
     Agriculture
     Defense Service
     Public Service
     Social Security & Welfare
     Public Order & Safety
     Housing
     Recreation, Culture, Religion
     Industrial & Economic Services
     Others
    Here is the pie chart showing Bangladesh Government's 2017-2018 overall budget
    summery.

    Focus of Bangladesh Government:

    In this fiscal year, the government allocated Tk 54,206 crore for the programme,
    which accounts for 13.54 percent of the total outlay. The amount will cross Tk
    65,000 crore in the next budget, said the officials.

    At a recent meeting on social safety net, a minister demanded that the number of
    beneficiaries be increased as the national election is approaching.

    Another major focus of the next budget will be on speeding up implementation of


    nine mega infrastructure projects, including Rooppur Nuclear Power Plant, Padma
    Bridge, Padma Rail Link and Metro Rail.
    For the projects, Tk 32,555 crore has been set aside, which is around 19 percent of
    the development budget.

    Besides, some other mega projects such as Dhaka Underground Metro Rail,
    circular railway and the second Padma Bridge have been included in the Annual
    Development Programme (ADP).

    Hiring or own funding?

    Bangladesh Government has taken many projects for development in their hand in
    recent years. Those projects need huge amount of investment. For which
    government need huge funding. And that is made by both own funding and hiring
    from other countries.

    Outcome of increased expenditure:

    Projects like Padma Bridge, Rooppur Nuclear Power project, Paira Sea Port, the
    coal fired large power projects of Matarbari and Rampal, Metro Rail and LNG
    terminal.

    Recently, another project -- Padma Bridge Rail Link project -- was included in the
    fast-track project. But it has not seen much progress as the Ecnec approve the Tk
    34,988-crore scheme only early this month.

    A ninth such project -- the Sonadia Deep Sea port -- remains shelved for now.

    The Rooppur project alone claims $12.65 billion. The Paira port project, which
    would take seven years to complete in three phases, also may need over $15 b --
    depending on the final plan. The feasibility report of the Paira port project was just
    submitted last month.
    Construction of the LNG terminal started in 2010 but due to management issues,
    the project limped along for long although the authorities were holding unsolicited
    negotiations under the Special Act for 'Quick' Supply of Power and Energy, 2010.
    Finally the government signed contract with a US based company on March 31
    last.

    These projects have increased expenditure by which investment of government has


    increased. By increasing investment, unemployment has decreased. Government is
    utilizing resources fully so economy is in inflationary gap now.

    Shifting in AD curve:

    We know,

    AD= C+I+G+NX

    Government expenditure (G) is increasing so AD curve will obviously shift


    rightward. As well as, unemployment has been reduced so consumption (C) has
    increased and also Investment (I).

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