Report on
BUDGET FY 2012-2013

Submitted To:
Nazmul H. Palash,
Lecturer,
Finance and Banking
Department of Business Administration
Faculty of Business & Economics
Daffodil International University

Submitted By:
Rakib Uddin
ID No: 103-11-1716
Section: C
B.B.A (27th Batch)
Date of Submission: 3rd June, 2012
Department of Business Administration
Daffodil International University

BUDGET FY 2012-2013

According to the latest forecast, the growth of global economy may stand at 3.5 percent in 2012. The developing and emerging economies might grow at 5.7 percent. In FY 2010-11, we achieved a growth rate of 6.7 percent and as per the provisional estimates of BBS, in FY2011-12 the growth will be 6.3 percent.
GDP growth will stand in the neighborhood of 7 percent. We have set our growth target at 7.2 percent for FY2012-13. In the last three years, we had an export growth of 21.2 percent. In the current fiscal year, up to April 2012, the export growth is 8.4 percent. Besides export, our import increased by 22.2 percent on an average in the last three years. In the current fiscal year, up to April 2012, import grew by 8.7 percent. During this period, import of capital machinery increased by 20.7 percent and that of industrial raw materials increased by 19.8 percent.

We are pursuing a restrained monetary policy to manage aggregate demand. Up to March 2012, the growth of money supply, on year on yearbasis, stood at 17.6 percent. Private sector credit flow grew by 19.4percent.

In the first half of the current fiscal year, we observed that foreign currency reserve is depleting and the exchange rate of Taka going down. This yielded result and there is a current account surplus of US$ 455 million up to March of the current fiscal. The exchange rate of Taka against dollar is settling down. On 29 May, 2012 the rate stood at Tk. 81.9.

Now, I will briefly present the proposed