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Budget Speech 2012-2013

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A Chronicle of Last Three Years: Building the Future Budget Speech 2012-13 Abul Maal Abdul Muhith Minister Ministry of Finance Government of People’s Republic of Bangladesh Dhaka 24 Jaisthya 1419 7 June 2012 Contents Issues Page Permission 1 Chapter I: Introduction and Background Tribute, Acknowledgement, The Vision, Budget: A 1-4 Tool for Realising the Vision Chapter II: Macroeconomy and Global Perspective Global Perspective, Growth, External Sector, Remittance and Manpower Export, Current Account, 5-7 Foreign Exchange Reserve and Exchange Rate, Inflation, Monetary Policy Chapter III: Budget for FY 2011-12: Problems and Corrections Revised Revenue Targets, Revised Expenditure Targets, Budget Deficit, Revised ADP, Recent 8-11 Economic Scenario, Economic Strategies Chapter IV: FY2011-12 Budget Structure Assumptions: Global Economy, Monetary and Fiscal Space, Sustained Growth in Agriculture, Private Sector 12-14 Investment, Revenue Mobilisation, Inflation Structure: Estimates of Revenue Income, Estimates of Expenditure, Budget Deficit and Financing, Annual 14-15 Development Programme, Overall Expenditure Structure Chapter V: Reform Programmes Public Financial Management: Medium Term Budget Framework, Multi-module Database (iBAS), Reforms in Expenditure Management, ADP Implementation, 16-18 New Budget Classification Structure and District Budget, Information Technology in the Public Financial Management, Strengthening Audit Ensuring Private Participation in the Infrastructure Sector: Public-Private Partnership, Institutional 18-19 Framework, Progress of PPP Projects and Future Plans Financial Sector: Sovereign Credit Rating, Modernisation of Bangladesh Bank, Reforms in 19-20 Financial Sector, Anti-Money Laundering, Reforms in Insurance Sector Capital Market: Capital Market Restructuring, Surveillance and Clearing & Settlement System, 20-21 Financial Reporting Act and Council Business Environment: Reducing Cost of Doing Business, Regional Trade, Ensuring Fair Competition 22-23 and Transparency, Economic Zones Chapter VI: Some Key Sectors (I) Power and Energy Sector 24-27 Power: Power Generation Situation, Power Generation 24-26 Plan, Alternative Sources Energy: Energy Production, Offshore Exploration of Oil and Gas, Onshore Exploration of Oil and Gas, 26-27 Development of Energy Management (II) Agricultural and Rural Development 27-36 Agriculture: Agricultural Inputs Support, Seeds, Protection of Soil Quality, Incentive for Maize and Beet Cultivation, Agriculture Credit and Crop Insurance, 28-31 New Variety of Paddy, Widening the Area of Cultivable Land, Agricultural Marketing, Agricultural Research, e-Agriculture Fisheries and Livestock: Development of Fisheries Sector, Development and Management of Marine 31-32 Fisheries Food Security: Food Security Programme, Emergency 32-33 Food Stock Water Resources: Recent Achievements, Increased Navigability, Development of Haor and Wetland, Rehabilitation of Landless People in Coastal Areas, 33-34 Development of Flood Forecasting and Warning System Rural Development: Construction and Development of Rural Infrastructure, Supply of Safe Drinking Water, 35-36 Sanitation, Protecting Interest of Marginalised People, Rural Electrification (III) Human Resource Development 36-45 Overall Education Sector: Implementation of Education Policy, Elimination of Disparity and Quality Enhancement in Education Sector, Decentralisation of 37-38 Education, Higher Education, Prime Minister’s Education Assistance Foundation Primary and Mass Education: Achievement in Primary Education Sector, Qualitative Improvement of 38-39 Primary Education, Prevention of Drop-out, Information Technology in Education Sector Health and Family Welfare: General Health Service, Urban Health, Community Clinic, Population, Family 39-42 Planning, Manpower and Infrastructure Development, ICT in Health Services, Nutrition Culture: Promoting Bangalee Culture, Archeological 42-43 Exploration Religion: Religious Harmony, Hajj, Mosque and 43-44 Temple based Education Programme Youth and Sports: National Service, Training and Micro Credit, Sports Infrastructure and Management, 44-45 Achievement in Sports (IV) Physical Infrastructure 45-52 Roads and Bridges: Integrated Transport Policy, Strategic Transport Plan, Easing Traffic Congestion in 45-48 Dhaka and Chittagong City, Achievements in Road Sector, Padma Bridge Railways: Priority on Rail Communication, Expansion 48-49 of Railway Service, Rail Infrastructure Expansion Water Transportation :Sea Port, Land Port 50-51 Civil Aviation: Capacity Building of Biman 51 Housing and Planned Urbanisation: Plot Development and Flat Construction, Housing Fund, 52 Housing Policy (V) Industrialisation 53-56 Private Sector Development, Stimulus Package for Export Industry, Environment-friendly Industrialisation, 53-55 Product Quality Control, Equity and Entrepreneurship Fund, Strengthening TCB, Tourism Industry, Revitalising Jute Sector, Sugar Industry Small and Medium Enterprise (SME): Refinancing in SME Sector, Women-friendly SME Programme, 55-56 BSCIC Industrial Estate (VI) Climate Change and Environment 56-60 Climate Change, Coping with Disaster, Disaster Resilient Houses and Shelters, Capacity Building for Rescue Operation, Using Digital Technology for Mitigating the Risk of Disaster, Reducing Air Pollution, 56-60 Waste Management, Medical Waste Management, Maintaining Environmental Balance, Preserving Biodiversity (VII) Digital Bangladesh 60-63 Information Technology Services: e-Service for Marginal People, e-Governance, e-Commerce, Postal e- 60-62 Centre, Development of e-Services, Expansion of Internet and Telecom Services Digital Infrastructure: Telecommunication Infrastructure, Regional Information Highway, 62-63 Technology Park, Recognition as an Outsourcing Destination, Producing Expert Professionals Chapter VII: Public Welfare Poverty Alleviation and Social Security: Social Empowerment, Citizen Core Data Structure, Different Types of Allowances, Welfare of Orphans, Survey on the Physically and Mentally Challenged, Autism, 64-68 Welfare of the Physically and Mentally Challenged, Rehabilitation of Beggars, Rehabilitation of Hardcore Poor, Employment of Hardcore Poor, Micro Credit Employment Generation: Expansion of employment 68-69 opportunities, Skill Development Expatriate Welfare and Overseas Employment: Expatriate Welfare Bank, Expansion of Labour Market, 69-70 Expatriate Voting Right and Automated Emigration Process Women and Children Welfare: Ensuring Women 70-72 Rights, Widening the Scope of Women’s Participation, Expansion of Women’s Employment Opportunity, Children Welfare Welfare of Freedom Fighters: Preserving the memories of Liberation War, Allowance, Ration and 72-73 Medical Facility for Freedom Fighters, Housing for the Freedom Fighters Minority and Underprivileged Community: Protecting Interest of Ethnic Minorities, Socio Economic Development of the Hill Tracts, 73-74 Development of Ethnic Minority Cultures, Disadvantaged Communities Chapter VIII: Good Governance Parliamentary Activities 75 Public Administration: Reforms in Public 75-76 Administration, Welfare of Government Employees Local Government 76-77 Land Management: Digital Land Management, Planned Rural Housing, Rehabilitation of the Landless, 77-79 Land Protection and Dispute Resolution Combating Corruption: Preventing Corruption 80 Rule of Law: Law and Justice, Trial of War Criminals and Sensational Cases, Legal Aid, Strengthening Law 80-81 Enforcing Agencies, Passport Development of Mass Media: Development of Broadcasting Media, Improving Quality of Journalism, 81-82 Development of Film Industry Foreign Policy: Restoring Image of the Country, Conquering the Maritime Boundary, Regional/Sub- 83-84 regional Cooperation National Defense: Modernization of the Armed Forces 84-85 Chapter IX: Revenue Sector Revenue Mobilisation: Fundamental Principles of Revenue Mobilisations, Reform Activities, Income Tax 86-89 Act, VAT Act Direct Taxes 89-94 Income Tax: Minimum Tax Payable, Continuing Incentive to Capital Market, Financial Discipline, 89-94 Transfer Pricing and Tax Evasion, Product Diversification in Agriculture and Incentive to Industrial Raw Materials Production, Tax Holiday and EPZ, Prime Minister’s Education Assistance Trust Fund, Expansion of Source Tax and Rationalisation of Tax-Rate Deducted at Source in Export and Others, Strengthening Audit, Strengthening Tax Refund System, Reforms in Tax Administration and Modernisation Indirect Taxes 94-104 Value Added Tax (VAT): Protecting Interest of the Taxpayers, Expansion of Turnover Tax Benefits, 94-98 Protection of Taxpayers’ Interest, Trade VAT, Tariff Value and Truncated Base, Amendment of Laws Import Duty and Supplementary Duty: Assistance to Local Industries, Duty Slabs, Rationalization of Tariff Rates, Duty on Importing ETP Equipments for Export Oriented Industries, Determining Value for New and Old Vehicles, Enforcing Copyright and Intellectual Property Right Laws, Automation of Bond System, 98-104 Capacity Building of Customs Administration and Tenure of PSI System, WCO Standards, Solar Water Distillation Plant, Changing H.S. Code of Bangladesh Customs Tariff, Separate H.S. Code for Hilsha Fish. Chapter X: Conclusion Conclusion 105-106 Annex Annex A 107-132 Annex B 133-149 In the name of Allah, Most Gracious, Most Merciful Mr. Speaker 1. I seek your kind permission to present the Supplementary Budget for the fiscal year 2011-12 and the Budget Estimates for Permission the fiscal year 2012-13 before this august House. Chapter I Introduction and Background 2. At
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