The national budget proposed by the government on Thursday is approximately $3 billion less than the budget proposed for the previous financial year,聽 considering the massive devaluation of the local currency.
The budget size between two financial years in dollar terms instead of the local currency taka also provides a clearer understanding of the real value and purchasing power of the budget, market experts said.
Finance Minister Abul Hassan Mahmood Ali on the day announced a budget size estimated at Tk 7,97,000 crore, equivalent to $67,571 million, based on the interbank rate of Tk 117.95 against $1 on the day.
In contrast, the budget proposed by AHM Mustafa Kamal on June 1, 2023, was Tk 7,61,785 crore, equivalent to $70,535 million, using the rate of Tk 108 against $1 at that time.
The scenario illustrates the significant impact of currency devaluation.
Although the government has allocated more funds in local currency, the real value of the budget, in terms of its purchasing power on the global market, has decreased, financial experts said.
This can affect the government鈥檚 ability to import goods, service foreign debt, and fund international projects, they said.
