|
| Bangla |
Economic Features |
English |
|
|
|
|
 |
National Budget Analysis |
 |
| Continuation |
|
Various departments, directorates, and ministries submit their estimated funding requirements in the form of demand for grants. Demands for each service is shown under the head issued by C&AG (comptroller and auditor general). No change in the heads of account can be effected without his approval. No demand for grant can be introduced in the parliament without prior approval of the President. Article of 92(b) of the Constitution has a provision for making a demand for grant titled 'Unexpected Expenditure'. It is a separate grant shown as lump. There is an elaborate procedure as to how the money should be drawn. The money drawn from this account has to be incorporated in revised budget/supplementary budget. Re-appropriation of funds are effected following the delegation of authority orders which defined the extent to which and on what items re-appropriation of funds can be made by office heads, departmental heads and ministries and divisions.
Stages of Budget Procedure :
Stages of budget procedure in Bangladesh are preparation, approval, implementation, and follow-up. Policy components of the budget are: (a) fiscal measures or revenue policy; (b) expenditure proposed for basic functions of the government, ie, revenue or current expenditure; (c) development or public investment, ie, ADP; (d) money budget, commonly called credit and liquidity programme; and (e) authorisation for implementation of these policies.
Revenue budget follows the traditional process of incremental budgeting. Estimates are adopted on the basis of preceding year's expenditures and their historical trend. Development budget is related to long-term investment within the framework of Five-Year Plan (FYP), mostly in activities of building infrastructures and additional facilities for production and services. Unlike revenue budget, development budget allocations are made on the basis of annual allocations shown in each project documents and the resources realities. New and on-going projects get the full allocations as shown in the Project Proforma (PP).
Finance division, ministry of finance is responsible for finalising the budget documents encompassing all stages from collection, examination of ministerial submission and passage through parliament to final publication of it. Budget and development wings of finance division take care of revenue and development budgets respectively while the internal resources division prepares the Taxation proposals.
|
| |
|
|
Placement of Budget Before Parliament.
The finance minister places the budget before parliament in June. It accompanies an introductory speech known as budget speech consisting of two parts. Part one deals with the overall financial and economic conditions prevailing in the country and government economic performance during the last one year and government economic plans and programmes and the budgetary allocation. Part two deals with taxation measures. After budget discussions, money bills, supplementary bill, and appropriation bill are placed before the parliament. If, for any reason, it is not possible to pass the appropriation bill within 30 June, a vote on account bill has to be placed before the parliament. Usually, through this bill an amount equivalent to two months expenditure is sanctioned.
Implementation of Approved Budget :
Implementation of the approved budget is carried out through various rules and orders embodied in General Financial Rules (GFR), Treasury Rules (TR) and the Delegation of Financial Orders issued by the finance division of ministry of finance. Authorisations embodied in the Appropriation Act constitute the outer framework of a control, while expenditure sanction and disbursement by executive authority at various levels follows a given pattern of delegated financial powers.
Budget implementation also involves balancing of government incomes and expenditures. Measures for realisation of income and its quantum and the direction of expenditure affect the economic life of corporate bodies, individuals and households of different income groups differently during the budget year.
Financial control is closely related to accountability and a control is exercised in order to ensure that the disbursements do not exceed the amount provided for in the budget estimates, the expenditures are made for the purposes specified, and financial propriety is ensured. The C&AG works as the watchdog in this respect. He prescribes the form and manner of keeping the accounts of the Republic. He ensures account compilation and timely auditing, prepares reports, and places them to the President who causes them to be laid before the parliament. This is an annual feature and this calls for compilation of two types of accounts: Finance Accounts, and Appropriation Accounts
Finance Accounts, sometimes called Annual Accounts of the government, is compiled by controller general of accounts (CGA). It incorporates comprehensive accounts of receipts and expenditures of the government. It classifies transactions under respective heads pertaining to all approved heads of government accounts and is kept in two parts. Part one comprises the accounts of total receipts and expenditures, the resultant revenue surpluses or deficits, the capital expenditures, including transactions related to temporary and permanent debts, deposit transactions, and money adjustments. Part two exhibits accounts of debts, deposit transactions, and money remittances. The accounts commence with a certificate of the C&AG that represents and authenticates CGA's reports and accounts.
Appropriation Accounts separately indicates 'charged expenditure' and 'other than charged expenditure' for each budget grant. This is sent to the controlling offices exhibiting budgetary provisions and expenditure thereof and their variation, if any, for their comments. On receipt of the comments of the controlling officers, CGA prepares the accounts. The rendering of audit reports on both accounts is the responsibility of C&AG and it serves the purpose of direction in which rules and governments orders are followed by the disbursing authorities.
Bangladesh followed the financial management system that existed in British India adopted in Pakistan. After the provincial autonomy was allowed in 1935, there had been two sets of financial rules: General Financial Rules (GFR-1922) meant for Central Government and the Bengal Financial Rules (BFR-1937). In 1998, New BFR was issued adjusting the overlaps and duplication of GFR-1922 and BFR-1937.
In 1990, a Committee on Reforms in Budgeting and Expenditure Control (CORBEC) was established and on the basis of its recommendations, a programme named Reforms in Budget and Expenditure Control (RIBEC) was carried out. RIBEC felt that changes in budget format, reduction of budget cycle and identification of flows of funds between government and autonomous bodies are related to classification necessary for budgeting, accounting, expenditure control, and analysis. Computer oriented classification has been evolved and put to practice during financial year 1997-98 and this is based on code groups, such as legal codes, functional codes, and economic codes.
The parliamentary control of budget is implemented through standing committees in respect of financial matters of the government. These committees are (a) Committee on Public Accounts (CPA); (b) Committee on Estimates (CE); and (c) Committee on Public Undertakings (CPU). The terms of references are laid down in the Rules (Rule No. 223- CPA, Rules Nos. 235 and 237 CE and Rules Nos. 238 and 239 CPU).
|
| |
|
|
| |
|
|
|
|
|
| |
| Digital bangladesh Features |
| Ads Search
Job Search
Information Zone :
|
|
| |
|
| |
|
|
|
