Staff Reporter :
The government has spent Tk 186,286 crore on the operating budget during the first half of the current 2024-2025 fiscal year, representing 36.7 percent of the total allocation.
This is an increase from the 31.2 percent utilisation rate recorded during the same period of the previous fiscal year (FY24).
The latest Monthly Fiscal Report published by the Finance Division highlights that a significant portion of this expenditure has been directed towards interest payments, public order and safety, and subsidies.
Interest payments have claimed one of the largest shares, amounting to Tk 62,560 crore, while Tk 35,589 crore has been allocated for subsidies. Together, these two categories account for over half of the total operating expenditure.
Interest payments and subsidies combined made up 53 percent of total operating expenses in the first six months of FY25, a notable increase from 44 percent in the previous year.
In the FY25 budget, salaries, allowances, and pensions account for 23 percent of operational costs, while loan interest repayments consume 22 percent, and subsidies and incentives make up another 20 percent.
However, development expenditure, including the Annual Development Programme (ADP), during the first half of FY2025 was the lowest in 12 years, with government agencies spending only 17.97 percent of the Tk 2.78 lakh crore allocated for the development programme.
Officials from the Finance Division noted that since the fiscal year preceding the 2014 one-sided election, the Awami League government has been increasing subsidies and incentives to appease business interests.
In 2015, alongside doubling salaries and allowances, various benefits were introduced for government employees, including those in law enforcement. New allowances, such as risk allowances, were also introduced for members of law enforcement and other agencies.
Ahead of the 7 January 2024 national elections, the Hasina government introduced an additional 5 percent salary increase along with a 5 percent incentive for government employees, a policy which is still in effect.
Meanwhile, the government’s revenue collection has fallen short of its target by Tk 57,700 crore, or 25 percent, during the first half of this fiscal year.
The authorities had aimed to collect Tk 214,143.10 crore in revenue during this period, according to provisional data from the National Board of Revenue (NBR).
Revenue collection dropped by 6 percent in the first half of FY2024-25 (FY25) compared to the same period last year, making it highly unlikely that the target for FY25 will be met.
