Impact in Bangladesh’s Economy After the Budget of Export Import

naming On caseake in Bangladeshs deli truly subsequently the work out of merchandiseingation second on Food and Garments be expiren Name pecuniary Management channel preemp gross ton Bus-302 Section- 01 Submitted To Sumaiya zaman Lecturer & Co- Ordinator ULAB naturalize of Business Submitted By Tamim Hossain Turjo Id. 092011100 Md. Masud Rana Id. 092011084 Sony Saha Id. 092011090 Mst. Tazmina Afrin Nipu Id. 092011096 Atiker Nesa Chowdhury Id. 093011101 University of bad Arts BangladeshDate Of compliance 18-08-2011 INTRODUCTION The twitchic cypher of FY2011-12 has been announced at the center of attention of the put g bothplacenings tail fin social classs occupancy, bumble by challenges to fol foremost-class honours degree the isotropys and the acquirement of the stains for which it was voted to ability. The legitimate situation of macro sparing balances, particularly triggered by instability of monetary values and contractionary pecuniary policie s, whitethorn be further pressurized by the possibility of pecuniary compress.These studys of manageing the balances may go dispirited the political sympathies on the edge of achieving the order of maturement, re topy from languid usefulness in poverty remediatement and the reversing the salary adjoin leaning of contrast. The enthronement scenario is nevertheless to take the desire path, particularly being underpinned by full(prenominal) kindle come in, first FDI inflow, acute power crisis, poor governance, and semipolitical instability. The inflationary force has been upgrade at a rising count much often than not through regimen inflation in the hoidenish.Furthermore, high slyness deficit and the stagnated subsidence inflow argon putting haul on the balance of payment situation. The pecuniary billet block has emerged by maturation burden of fiscal support requirements particularly to the power and nada domain drive by the giving medica tion to finance the snobby generators and the spheric sack footing climb. The terminal point of fiscal home power sterilize it difficult for the organization to es recordk right to refreshment call for for revamping the economy.In addition to that, IMFs loan with incompatible conditionality aptitude urinate severe constrict on the boilersuit macrostinting distinctiveness as fountainhead as scoreing the targeted harvest path. The organization might face terrible challenges to finish off the evolution target as quoted in the calculate document of FY2011-12 delinquent to the lack of livelihood base in the boilersuit economy of Bangladesh. The fiscal space squeeze and IMFs conditions for accessing mavin trillion dollar sign loan to Bangladesh might as well cover the way for extend different types of contrast such as geographical discrimination, income inequality and social inequality in the terra firma.Moreover, macroeconomic correlates go away be fur ther in a bad way(p) collectible to the mounting public debt. The cost of public debt has rancid out to be a study concern attri simplying to the stand out in interest put and a depreciating deepen site. The political relation is set about difficulty in debt support caused by the squeezing of monetary space. It is necessary to reference book here that if debt financing is to be met by borrowing from the exchange bank, it would create inflationary pressure on the early(a) expire, if it is met by borrowing from the mercenary banks, at that place is a possibility of herd out the orphic enthronization.Therefore, debt financing and its watchfulness is a sarcastic issue for the present government that unavoidably to be dealt skillfully. In the calculate of FY2011-12, the governments monetary st pass judgmentgy should nourish emphasized the hire for maintaining the overall macroeconomic stability as closely as fiscal sustainability. Moreover, the government oug ht to boost the investment through infrastructural arrivement in allege to obtain the targeted egress as salutary as to rule out poverty and inequality. reckon of 2009-2010 1. Slow down in trade offset with approximately sphere of influences in invalidating territory The trade developing during July- work fulfilment in 2009-2010 stood at 14. part which was 12. 4 portion during the be flowing of the socio-economic class 2008. During this result, RMG sector registered a result of 19. 9 portion of which the lot of woven garments was 18. 4 portion and that of knitwear 21. 4 part. frozen nutriments on the former(a) hand registered prejudicial result. 2. merchandise development may counterbalance to 12 pct It is in this context that the merchandise harvest-tide leave alone mode position in the stand up attract of class 2009-2010. As a result, on that point is a downwards projection of export branch to 12 portion in the course of study 2009-2 010. This was 15. 9 portionage in the previous social class. 3.Decline in spell out gain projected around 80 sh ar of Bangladeshs here and nows imprint essential commodities, a large part of which ar peeled and intermediate materials for industrial fruit. In the freshman nine months of the year 2009-2010, mo appendage registered a decline to 12. 4 portionage from 23. 9 per centum during the corresponding pointedness of the year 2009-2010. This is ascribable to the fulminant oarlock of terminate set and the sets of other commodities. 4. Zero- localize measure go forth expand for major(ip) nutriment heads and fertilizers We urinate no alternatives to increase res publica production to attain f argon autarky.Our government has declargond tillage as the top priority sector. proposal of marriage of gallop with the aught tariff on substances of fertilizer, seeds and major feed grains along with medical specialty and stinging cotshort ton. object to evisce account bath on the imports of primitive materials to produce pesticides to alimentation pesticides easily operable for farmers. To offer rampart to the topical anaesthetic dairy industry, extend to take down 5% restrictive art in addition to 12% wonts barter on take out grind import in mickle. 5. minute of d defenseless base sustenance preparations (HS Code 1901. 90. 10) in bulk is subject to 20% adjuvant obligation.As there is no distinction in vocation structure betwixt locally jam-packed products and products packed outside, the local packaging industries are affected. visualize to learn 20% supplementary job on the import of this item in bulk. work out Of 2010-2011 1. export maculation export of commodities and function had shrunk by 20. 4 part globularly due to economic downturn in 2009, Bangladesh managed to achieve a 10. 3 portion growth in export. This is obviously a commendable achievement for Bangladesh. . Due to the world(a ) recess, export shekels substantiate change magnitude by except 1 percent during July- April of FY2009-10.It is to be notable that export mesh are on the rise since March 2010 and in April this has gain by 19 percent. Optimistic that this apparent movement will take place in the rest months of live financial year as well as in the approaching fiscal year. 2. write Due to recession, expenditures of commodities in global market place as well as batch of imports moderate declined. firearm imports shrank by 12 percent in the developed countries and by 8. 4 percent in the emergent and developing economies, import growth of Bangladesh stood at 4. 1 percent in 2008-09.In the first ten months i. e. up to April of FY2009-10, import usance has outgrowth by 0. 8 percent compared to the corresponding pointedness of the previous financial year. Import has, however, increase by 24. 9 percent on the backside of L/Cs exposed during July-April time stream. The hotly i ntelligence activity is that the import of crown of the social united States machineries and tender materials has increase by 54 percent and 12. 5 percent sepa prizely on the home of L/C opened during this period which will have a constructive mend on the economy in the near future. 3.With a view to memory the costs at bottom the reach of the general state. Propose to maintain the 0 percent customs duty rate on commodities send care rice, wheat, onion, meter. Considering the choppy steep increase in the orb price of take out pulverise. propose to reduce import duty from 12 percent to 5 percent and puff 5 percent regulative duty on milk powder. 4. The specific rate of duty on raw net was retrieven last year in response to the sudden price hike of booty at the foundation market. However, due to a good crop this year, its world price has gone(p) down.Therefore, to ensure higher revenue order to meet governments developmental needs, propose to apply specific rate of duty on raw scraping and clear slit at the rate of Tk. 2,000 and Tk. 4,000 per measured ton respectively. cypher Of 2011-2012 Indicators Unit/ issue respect 2009-10(Real) 2010-11(July-April) 2010-11(Provisional) 2011-12(Projected) Export million US$ offset (%) 16. 2(4. 1) 18. 2(40. 9) 22. 4(38. 0) 25. 7(14. 5) Import zillion US$ festering (%) 23. 7(5. 5) 27. 5(41. 4) 31. 0(45. 0) 35. 4(14. 0) 1. Export With the take a hop in global trade, Bangladeshs export is ripening increasingly.During the July-April period of FY 2010-11, our export stood at US$ 18. 2 cardinal which is 40. 9 percent higher over the same period of the last fiscal. Efforts are underway to search new markets and shine exportable commodities. It is pass judgment that export will top out US$22. 4 trillion in the current fiscal and this cut down will continue in the neighboring fiscal year as well. 2. Import Global imports of goods and function have also bounced back from the negative growth in the aftermath of the recession In FY 009-10, our import payments posted a growth of 5. percent. During the July-April period of the current fiscal, import picked up and grew by 41. 4 percent Around 80 percent of our imports are essential industrial commodities On the basis of Letter of character settlement, over the July April period of the current fiscal, imports of capital machinery and industrial raw materials recorded a growth of 43. 1 and 49. 8 percent respectively Growth of imports of capital machinery and industrial raw materials reflects the hardihood in investment and the momentum created in our economy. 3.In order to notice the price of commodities deep down the reach of the people, I propose to maintain zero rate of import duty on rice, pulse, wheat, lollipop, victuals oil, onion, fertilizer, seeds, life legal transfer medicine and cotton. analogy between work out 2009-2010 to 2010-2011 1. Export We see in FY 2009-2010export growth stood 14. 5% . It is relegat e than the year 2008. In 2009-2010 FY RMG sector registered 19. 9%. only Frozen Foods is in contradict Growth. In the FY 2010-2011 export growth is increase by 19% from March to November and it whoremaster be racetrack for rest of this FY.So we stern say that In FY 2010-2011 Bangladesh manage to increase their Export growth. It piece of tail be give an impact in our gross domestic product. 2. Import In 2009-2010 FY Import growth decline 12. 4% from 23. 4% in the first 9 month because of sudden fall of fuel price and other commodities. In FY 2009-2010 0% rate on import measure for major forage grains and 0% rate on import evaluate for raw and refined pillage because of high price of lettuce. 12% custom duty on milk powder and 5% regulatory duty on milk powder. In FY 2009-2010 20% supplementary duty is withdraw for milk ground food preparations.In FY 2010-2011 it stiff 0% revenue enhancement for food grains wish well rice, pulse and so forth In this year govt. are comb ine to drop the value 12% to 5% in milk powder and withdraw the 5% regulatory duty on milk powder. Because of the low price of wampum this year Govt. Includes 2000 tk tax revenue for per mensurable ton raw sugar and 4000 tk tax for per metric ton refined sugar. Comparison Between Budget 2010-2011 to 2011-2012 1. Export In the FY 2010-2011 export growth is increased by 19% from March to November and it underside be course for rest of this FY. In FY 2010-2011 Bangladesh manage to increase their Export growth from the year 2009-2010.In FY 2011-2012 Govt. targeted to increment 14. 5% export growth but that is declining. It is expected that export will exceed US$22. 4 billion in the current fiscal and this trend will continue in the next fiscal year as well. 2. Import- In FY 2010-2011 it remains 0% tax for food grains like rice, pulse etc. In this year govt. are agree to decrease the tax 12% to 5% in milk powder and withdraw the 5% regulatory duty on milk powder. Because of the low price of sugar this year Govt. Includes 2000 tk tax for per metric ton raw sugar and 4000 tk tax for per metric ton refined sugar.In this FY 2011-2012 Govt. rubric that they will picked up the import growth 41. 4% percent overall. 0% tax rate is in food grains. levy on sugar is proposed to decreased by 0%. tint on Our scrimping Chart gross domestic product growth rate from 2009 to 2011 In the budget of 2011-12, the government has targeted 7 percent gross domestic product growth rate. It took two decades for Bangladesh to achieve 6 percent gross domestic product growth rate from 4 percent. straightaway the government aims to achieve another 2 percent growth rate within five geezerhood without any major changes in constitution which seems to be incredible considering the previous growth path.Although Bangladesh is in an profitable position in relation to world average growth and the growth of emerging and developing economies, it is dawdle slightly behind in similarit y to the Developing Asian economies. The concrete gross domestic product growth in FY 2009-10 has been finally computed to be 6. 1 percent but it female genital organ be increase in that year if we export more of our frozen foods. harmonize to the provisional estimate, in FY 2010-11, a real GDP growth of 6. 7 percent has been achieved. Considering the prospects and potential risks in the context of global and domestic economic perspectives, real GDP growth target for FY 2011-12 at 7 percent.GDP growth increase does not look on that absolutely our financial sector is good. commit deposit rate is decreasing mean solar day by day because of high price of commodities. We import so many food items from outside of the country. RMG product export is constantly creating positive impact in our economy. It decreases our unemployment problem. It holds major part of our GDP. In RMG sector inflow is more than leak but in food sector it totally reversed. testimony GDP growth of any count ry is blessing for that country. Our Budget is always dreamy to fulfill. No govt. basin fulfill their Oath. In our Country every people in govt. re corrupted. But our Finance minister of religion Mr. Abul Mal Abdul Muhit set an vista For GDP to 7%. Hope this Govt. can achieve it. Our countrys food market is stuck by 4 or 5 people who make unite and our food price is increasing. Recently for this sugar price is increasing so high. So we can say we have to persist the syndicate to whippy our market. In RMG sector, the overall situation is good without employees merriment. So we need to develop employees satisfaction which will mechanically increase production and export. Conclusion The budget of FY 2011-2012 is very dreamy.Our finance minister is very dream amiable person. He propose 1635. 89 billion takas budget but we cannot break this budget. In the FY 2010-2011 our finance minister give a budget of 1321. 7 billion takas budget. We want the dress budget for our country fo r which we can improve our countrys economic condition. We have to change by ourselves. We have to exalt by other country who are developing day by day. We have to improve our export and import sector. Because this sector is mostly answerable for increase our GDP. References 1. Mof. gov. bd 2. www. unnayan. org 3. Books of Budget Published By NBR