LETTER OF TRANSMITTAL

August 19, 2018.

The Course Teacher,
Kazi Omar Siddiqi
Assitant Professor,Comilla university
Subject: Prayer for granting our term paper.

Dear Sir,

By the grace of almighty Allah, the most benevolent and merciful, we have been
successful to complete this term paper.

Here is the term paper on “Comparison: Budget FY 2015-16 & 2016-17”. You
assign us to prepare it. Preparing of this term paper help us to gather experience
and knowledge that would be needed for us to meet today’s challenging job
market and to prepare for exam.

We have tried our best to make the term paper comprehensive and reliable within
the given time period. Nevertheless, some mistake might be occurred, please notice
this type of unconscious mistake with sympathy. Your suggestion and comment for
the improvement of this term paper will be thankfully received and if you needed
any quires about the study, please call us.

Sincerely yours

----------

(Group Leader)

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 ACKNOWLEDGEMENT

By the grace of Allah we have completed our Term paper on “Comparison:

Budget FY 2015-16 & 2016-17”. At first a special thanks goes to our honorable
course teacher.

We have tried to our best to make the term paper comprehensive and reliable
within the given time period. Nevertheless, some mistake might be occurred,
please notice this type of unconscious mistakes with sympathy and pardon. Your
suggestions and comments for the improvement of this term paper will be received
thankfully and if you need any quires the study, please inform us.

Yours faithfully

--------------

Group leader,

On behalf of the group no- 2

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 TABLE OF CONTENTS
No. Topics Page
Chapter: 01: Introduction 5-7
01  Background of the study 6
02  Objectives Of The Study 6
03  Budget as definition 7
Chapter: 02: Budget at a glance 8-12

01  Budget FY 2015-16 9-10

02  Budget FY 2014-15 11-12

Chapter: 03: Comparison Budget : FY 13-37

2014-15 and 2015-16

01  Comparison top 5 expenditure 14-30

02  Comparison top 5 income 31-37

Conclusion 38

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 EXECUTIVE SUMMARY

A government budget is a legal document that is often passed by the legislature,

and approved by the chief executive-or president.

Forecast of governmental expenditures and revenues for the ensuing fiscal year.
In modern industrial economies, the budget is the key instrument for the
execution of government economic policies. Because government budgets may
promote or retard economic growth in certain areas of the economy and because
views about priorities in government spending differ widely, government budgets
are the focus of competing political interests. The budget has been announced
with eight major objectives including creating employments, maintaining prices
of essentials at a tolerable level, ensuring food security and extending social
safety net.

The annual budget is prepared by the Ministry of Finance and presented to

Parliament for approval each year, except during periods of martial law, when the
Budget has been announced by the martial law administration. It is divided into a
revenue budget and a development budget, on both the receipts and the
expenditures sides.

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 CHAPTER: 01.
Introduction
1.1 Background of the Study:
Our term paper is on the comparison of top 5 income and expenditure on the
Budget FY 2015-16 and 2016-17.A budget is a quantified financial plan for a
forthcoming accounting period. A budget is a quantitative expression of a plan for
a defined period of time. It may include planned sales volumes and revenues,
resource quantities, costs and expenses, assets, liabilities and cash flows. It
expresses strategic plans of business units, organizations, activities or events in
measurable terms.

Top five expenditures on the Budget FY 2015-16 and 2016-17 are public service,
education and technology, transport and communication, agriculture and local
government and rural development. We compare those items between two FY year
budgets.

On the other hand top five incomes on the Budget FY 2015-16 and 2016-17 are
vat, import duty, income tax, supplementary duty, defense receipts. We compare
those items between two FY year budgets.

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1.2 Objectives Of The Study
We mainly conduct the study in order to achieve some specific objectives. Here
we have mentioned some major objectives that we approach by studying the
comparison of top 5 incomes and expenditure on the Budget FY 2015-16 and
2016-17.To build up the strong knowledge about the comparison of Budgets.

 To increase our knowledge about Budget.

 To clarify the nature & practice of Budget.
 Analyze the FY2015-16 and 2016-17 BD budget.
 To measure the impact of the budget in the economy.
 To increase our skill.
 To increase the ability of making any document.
1.3 Budget as Definition:
A budget (derived from old French word bougette, purse) is a quantified financial
plan for a forthcoming accounting period.

A budget is a quantitative expression of a plan for a defined period of time. It may

include planned sales volumes and revenues, resource quantities, costs and
expenses, assets, liabilities and cash flows. It expresses strategic plans of business
units, organizations, activities or events in measurable terms.

Budget is an estimation of the revenue and expenses over a specified future period
of time. A budget can be made for a person, family, group of people, business,
government, country, multinational organization or just about anything else that
makes and spends money. A budget is a microeconomic concept that shows the
tradeoff made when one good is exchanged for another.

Investopedia explains 'Budget':A surplus budget means profits are anticipated,

while a balanced budget means that revenues are expected to equal expenses. A
deficit budget means expenses will exceed revenues. Budgets are usually compiled
and re-evaluated on a periodic basis. Adjustments are made to budgets based on

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the goals of the budgeting organization. In some cases, budget makers are happy to
operate at a deficit, while in other cases, operating at a deficit is seen as financially
irresponsible.

Chapter– 02.
Budget At A Glance
2.1 BUDGET ANALYSIS OF FY 2015-16
2.2.1 THE MAIN FEATURE OF BUDGET 2015-2016:
 Revenue income (19.87%) will grow faster than government expenditure
(17.49%). Total budget expenditure is set at 18.71% of GDP Revenue
income will be 14.08% of GDP
 Incremental revenue will go to ADP financing. Development expenditure
(25.20%) will grow faster than non‐development revenue expenditure
(10.28%)
 Budget deficit (ecl. Grants) has been projected at 4.6% of GDP (4.8% in
RBFY13).Balance in financing budget deficit will be restored.
 Government’s net bank borrowing will decrease by (‐) 8.74% as well as
borrowing from non-banking sector will be almost double.

Highlights of budget 2015-2016

Size of the budget :
2,95,100 crore

Total expense :
2,95,100 crore

Budget deficiency :
80,857 crore

GDP growth :
7.0 percent
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Inflation rate :
6.20 percent
  The Padma Bridge alone got an allocation of tk.6,852 crore. The

2.1.3Top 5 incomes 0f budget FY 2015-16

Position Name of income Percentage(%)
1 Tax revenue (NBR) 59.8%
2 Domestic financing 19.1%
3 Non-tax revenue 18.9%
4 Foreign loan 8.2%
5 Non NBR 2.0%

According to Development & Non-Development budget 2015-16 the income

resources are shown through pie chart:

Object 2

2.1.4 Top 5 expenditure of budget 2015-16

Position Name of expenditure Percentage(%)
1. Education and technology 14.9%
2. interest 12.0%
3. Transport and communication 10.1%
4. Public service 9.0%
5. LGRD 8.1%

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 Object 5

2.2BUDGET ANALYSIS OF 2016-17

2.2.1 KEY FEATURES OF 2016-17 FY BUDGET

 The outlay of the new budget stands at Tk. 3,40,605 crore, up by 28.73
percent from the previous Tk. 2,95,100 crore.
 The GDP growth target is 7.2 percent. In the last budget, this target was 7.2
percent, but was later revised down to 6.5 percent.
 It plans to keep the average inflation within six percent. In the last budget,
this target was 7 percent. By the end of April, the average inflation was 7.47
percent.
 Revenue target is set at Tk. 2, 42,752 crore, almost 73 percent of the
budgetary outlay.

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Highlights of budget 2016-2017

Size of the budget :

3,40,605 crore

Total expense :
2,42,752 crore

Budget deficiency ( with

donation) :
97,853 crore

GDP growth
: 7.2 percent

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2.2.2EXPENDITURE DETAILS OF DEVELOPMENT &
NON-DEVELOPMENT BUDGET 2016-17

According to budget 2016-17 the details of Development & Non-Development

Expenditure are shown through pie chart

Object 8

The total expenditure for FY 2016-17 has been estimated at Tk.3,40,506 crore .
The allocation for non-development and other expenditure has been estimated at
Tk. 2,42,752 crore (12.7 percent of GDP).whereas the development expenditure
has been set at Tk. 1,10,700 crore(6.4 percent of GDP) of which Tk. 97,853 crore
has been allocated for Annual Development Programme (ADP) which is six
percent of GDP.

Top 5 expenditure of budget2016-17

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Position Name of expenditure
Percentage
1 Education and technology 15.5%
2 Public services 13.9%
3 Interest 11.7%
4 Transport and communication 10.9%
5 LGRD 6.9%

2.2.3INCOME DETAILS OF BUDGET 2016-17

According to Development & Non-Development budget 2016-17 the income
resources are shown through pie chart:

Object 11

Revenue earning of government largely depends on the collection of taxes.

Although an increasing trend of collection in tax revenue continues, the country
still lags behind other developing countries in collecting taxes. Of the total revenue
collection targeted at Tk. 2,42,752 crore in FY 2016-17,. Thus, in FY 2016-17,
total revenue is expected to be scaled up to 13.7 percent of real GDP. This figure is
only 0.4 percentage points higher than the revised budget estimates of FY 2016-
17. On the other hand, total expenditure is planned at Tk. 2,50,506 crore, which is

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0.4 percent higher than the revised budget estimates of FY 2016-17. Although both
the total revenue and total expenditure have an increasing trend.

Top 5 incomes 0f budget FY 2015-16

Position Name of income Percentage(%)
1 Tax revenue (NBR) 59.8%
2 Domestic financing 19.1%
3 Non-tax revenue 18.9%
4 Foreign loan 8.2%
5 Non NBR 2.0%

CHAPTER– 03.
COMPARISON:
BUDGET-2015-16 & 2016-17

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CONCLUSION:
Finally, we try our best to compare top 5 incomes and expenditure in the
FY 2015-16 and 16-17.We the find that in the top 5 expenditure that in
the FY 2016-17 the amount of budget is more in public service,
education and technology, transport and communication, agriculture and
local government and rural development sectors. On the other handwe
find that in the top 5 income that in the FY 2015-16 the amount of
budget are more in 4 sectors. Those are vat, income tax, supplementary
duty, defense receipts. But in import duty budget is more in FY 2016-
17than FY 2015-16.

Bibliography:

www.bangladesh-government –org
https://ministry-of45finance.bd
https://www. brac-bank.uk/hr/law/policy/
http://www.bank.com/on-the -methods
http://brac.act.com/bank/define
http://.brac- bank + act/org.bd
http://www.informationbible.com/
http:// blr.com/commerce.bank/ltd.org
http://bank.banglades.hact /define.

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