The government has projected its expenditure to remain at 17 per cent of the GDP in the next two fiscal years defying the adverse impact of coronavirus, although the pandemic pulled down the rate slightly. In the current 2021-22 fiscal, the government expenditure has been set at 17.3 per cent of the GDP while it was 17.4 per cent of the GDP in the revised budget of the 2020-21 fiscal, according to an official obtained by UNB. According to the official budgetary document, government expenditure was 13.9 per cent of GDP in 2015-16 fiscal and declined to 13.6 per cent in 2016-17 fiscal. Read: Rebased GDP now official in national accounting In the 2017-18 fiscal, the rate increased to 14.3 per cent of the GDP whereas the rate shot to 15.4 per cent in the 2018-19 fiscal. But in the 2019-20 fiscal it slightly went down to 14.9 per cent of the GDP. As per the document, with successful implementation of reforms in Public Financial Management, government expenditure has been increased since 2015-16 fiscal. "In the medium term (2023-24), the government intends to pursue a moderate consolidation path to keep budget deficit within a sustainable limit," the document said. It mentioned that due to the outbreak of coronavirus, the government has changed its spending priority to expand healthcare and provide stimulus programmes to achieve desired economic recovery. On the other hand, as per the document, the growth rate of nominal government expenditure fluctuated between 6 and 21 per cent over the 2015-16 fiscal to 2019-20 fiscal.

The National Board of Revenue (NBR) has devised five strategies to boost its revenue collection offsetting the negative impacts of the Covid-19 pandemic.

The government has planned to borrow Tk 5714.5 billion from various sources both at home and abroad over the next three fiscal years, including the running one, mainly to face the economic challenges posed by the COVID-19 pandemic which has stalled economic activities across the world.

The government plans to spend almost Tk 500 billion over the next 3 years in rural development and for strengthening the local government system.

The proposed budget for the 2020-21 fiscal “represents an unimaginative response to an economic crisis that calls for boldness and creativity”, according to Dr Reza Kibria, general secretary of Gono Forum.