Finance Minister Abul Hasan Mahmood Ali has presented a proposed national budget of Tk 797,000 crore for the fiscal year 2024-25. This new budget introduces reduced import duties on several goods, leading to lower prices for these items.
The budget was unveiled at a parliamentary session on Thursday (June 6) at 3 pm, presided over by Speaker Shirin Sharmin Chaudhury and attended by Prime Minister Sheikh Hasina.
This marks the first budget for the current government’s fourth consecutive term and the 21st budget under Prime Minister Sheikh Hasina’s leadership. It is also Finance Minister Abul Hasan Mahmood Ali’s first budget presentation.
Goods Expected to See Price Reductions
The proposed budget includes the removal of a 20% supplementary duty on the import of packaged powdered milk, which is expected to decrease its market price. Additionally, a 25% reduction in the duty on chocolate imports will lower chocolate prices. VAT on laptop imports has been removed, decreasing the overall tax from 31% to 20.5%, which will reduce laptop prices.
The import duty on polypropylene yarn, a key raw material for carpet manufacturing, has been cut from 10% to 5%, reducing the price of locally produced carpets. The aviation sector will benefit from reduced VAT on engine and propeller imports, leading to lower maintenance costs for aircraft. Import duties on CKD parts for locally manufactured motorcycles have been reduced, which will lower motorcycle prices in the domestic market.
The import duty on manganese, used in the production of rods, bars, and angles, has been reduced from 10% to 5%, decreasing the cost of metal products. Prices for switches and sockets used in households are expected to drop due to reduced import duties on raw materials for their production. Concessions on parts for electric motor production will also result in lower prices for electric motors.
The budget reduces import duties on raw materials for dialysis filters, decreasing the cost of dialysis. Additionally, a 9% reduction in import duties on circuits will lower dialysis expenses. The prices of spinal syringes and dengue kits will also drop due to preferential import duty concessions.
Budget Overview
The budget theme is “Commitment to Building a Happy, Prosperous, Developed, and Smart Bangladesh.” The proposed budget size for FY 2024-25 is Tk 797,000 crore, a 4.6% increase from the current budget.
The current budget for FY 2023-24 was set at Tk 761,785 crore. The upcoming budget proposes an Annual Development Programme (ADP) of Tk 265,000 crore, compared to Tk 263,000 crore for the current fiscal year.
The overall budget deficit is projected at Tk 256,000 crore, a decrease from the revised deficit of Tk 283,785 crore for the current fiscal year. The target for total revenue is set at Tk 545,400 crore, up from Tk 500,000 crore in the previous year.
For FY 2024-25, the GDP growth target is set at 6.75%, potentially reaching Tk 55,97,414 crore. The current fiscal year’s GDP growth target was 7.5%, later adjusted to 6.5%. The proposed budget aims to keep inflation at 6.5%.
