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Military spending increases slightly

The Ronin

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The proposed amount of this fiscal (Tk32,101 crore) is 9.4% more than the previous fiscal

The chunk of defence budget for the next Fiscal Year 2019-20 has been increased slightly compared to that of the outgoing fiscal.

The proposed amount of this fiscal (Tk32,101 crore) is 9.4% more than the previous fiscal, according to the budget proposed by Finance Minister AHM Mustafa Kamal, placed in parliament on Thursda.

However, of the total Tk5,231.90 billion, 6.1% has been earmarked for defence sector, scaling down from the allocation of the outgoing fiscal. In the last fiscal the amount was 6.43% of the total budget.

Out of the total amount, Tk1,480 crore will be used for the development works.

Of the overall allotment, Tk30,765 crore has been set aside for defense services while Tk1,928 crore has been appropriated as operating cost of the Ministry of Defence and other services.

Tk38 crore has been set aside as operating costs of the Armed Forces Division which was Tk35 crore in the last budget.

https://www.dhakatribune.com/bangla...RdYz9i3D1mWRzxsK91foGJGHj3j7XO-bXkuTphcRdTKZ4

Law enforcement agencies to get a giant chunk

Of the total budget allocation, Tk2,166 has been proposed for the development alone, which is Tk908 crore more than the last fiscal

Law enforcement agencies are getting a mammoth allotment in the proposed budget for the fiscal year 2018-19, as the public order and safety sector alone will get 5.3% (Tk27,636 crore) of the Tk5,231.90 billion budget, rising 3.78% from the previous fiscal.

According to the budget proposal placed by the AHM Mustafa Kamal in parliament on Thursday, the Public Security Division under the Home Ministry, which includes all law enforcement agencies, will receive a Tk21,922 crore allotment, which was Tk21,406 crore in the last fiscal.

Of the total budget allocation, Tk2,166 has been proposed for the development alone, which is Tk908 crore more than the last fiscal.

On the other hand, allocation for the Security Services Division has been proposed at Tk3,694 crore, which was Tk3,334 crore in the previous fiscal. Of this, Tk1,585 crore will be allocated for the development of the sector, up from Tk1,251 crore in the previous fiscal.

These two divisions -- the Public Security and the Security Services divisions– were made in 2017 after splitting the Ministry of Home Affairs.

Kamal, a businessman-turned politician, unveiled his first national budget of the fiscal year 2019-20 at the parliament on Thursday.

Tk195 crore has been proposed for the Supreme Court for its operation, with an increase of Tk15 crore over the previous fiscal. The highest court of the country however has not been allocated any development budget this year.

This Public Order and Safety sector includes the Supreme Court, Law and Justice Division, Public Security Division, Legislative and Parliamentary Affairs Division, Anti-Corruption Commission, and Security Division.

Tk32,520 crore allocated for defenceministy

On the other hand, the Ministry of Defence has been allocated Tk32,520 crore, which is Tk3,454 crore more than the previous fiscal.

Armed forces division is supposed to get Tk38 crore with no development expenditure which is Tk3 crore more than the previous one.

https://www.dhakatribune.com/busine...OOOoah6nyehoUflPbpy8VMD4XWDC5xec5rtVT_7APQtps
 
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Defence spending has increased in real terms but reduced as percentage of GDP.

This is ok as this budget does not take into account arms imports which comes from a separate fund.
 
Defence spending has increased in real terms but reduced as percentage of GDP.

This is ok as this budget does not take into account arms imports which comes from a separate fund.
Everything that going to be spend is in the budget. where is the separate fund? Even foreign loan and grant is in the budget.
 
Everything that going to be spend is in the budget. where is the separate fund? Even foreign loan and grant is in the budget.

So they already predict what they are going to buy and how much it costs?
Dude, arms imports are running at .5-1 billion dollars a year and they say around 150 million dollars on development spending a year on military. The math gives us the answer here.
 
So they already predict what they are going to buy and how much it costs?
Dude, arms imports are running at .5-1 billion dollars a year and they say around 150 million dollars on development spending a year on military. The math gives us the answer here.
There can not be anything outside of budget.... if it says 150 million then it is 150 million.
 
There can not be anything outside of budget.... if it says 150 million then it is 150 million.

Please Google SIPRI arms imports for BD.
2017 was 320 million dollars.
The arms imports are mainly loans that are part of debt repayment in the budget.
 
Please Google SIPRI arms imports for BD.
2017 was 320 million dollars.
The arms imports are mainly loans that are part of debt repayment in the budget.
In the arms import a major portions are replenishment which are not development. But everything is in Budget. If anybody claims that BD govt can spend money outside of budget and from their own pocket are misinformed about the way govt spend money
 
Development budget is a tricky issue.

Any project/purchase, even defence purchase, that costs more than BDT 100 crore, have to be approved by ECNEC/purchase committee.

After approval by ECNEC only then gov. allocates funds that will be spent in the project on that particular fiscal.

BN next generation frigate project already approved by ECNEC in 2017-18. So you won't see entire $2 billion purchase allocation in a single fiscal. Rather the necessary funds will be divided in portions & allocated over the fiscals the project will take to complete.

Also keep in mind gov. can divert unused fund of one dept. to another. Our MBT2000 & Euro Dauphin's were bought using funds of Disaster Management Bureau.
 
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In the arms import a major portions are replenishment which are not development. But everything is in Budget. If anybody claims that BD govt can spend money outside of budget and from their own pocket are misinformed about the way govt spend money
Govt. will spend Taka 570 billion in this budget for debt servicing. I think any arms purchase will be paid from this money. For example we have procured 1 billion dollar arms from Russia with loan. Don't you think a portion of it's repayment will be given from this 570 billion Taka? Is not this debt servicing money is separate from money allocated to various sectors like education, health, defence?
 
Govt. will spend Taka 570 billion in this budget for debt servicing. I think any arms purchase will be paid from this money. For example we have procured 1 billion dollar arms from Russia with loan. Don't you think a portion of it's repayment will be given from this 570 billion Taka? Is not this debt servicing money is separate from money allocated to various sectors like education, health, defence?
Yes you got a point there. But govt borrow money in any fiscal year to cover budget deficit. First they have to show the expenditure then the income plus the rest is borrowing.

For instance not all the money (3.85 bln) govt allocated for defense forces will come from exchequer but from some borrowing. This money will be paid back over the years in the following budgets. Govt cant just randomly borrow money and give it to the army to purchase arms. Even if it was done in a contingency basis, will be reflected in the revised budget at year end. It must be shown in expenditure.
 
There can not be anything outside of budget.... if it says 150 million then it is 150 million.

Unlike in Western nations, the published budget is not end all be all in Bangladesh. The government manipulates spending in various ways with both good and bad intent.

The government downplays the military budget in various ways as public opinion is overwhelmingly against military spending. Ask ten random strangers around you about their opinions on military spending and see how they respond. The donor agencies too do not look at military spending favourably when handing out soft loans.

The government channels funding for major military procurement (such as the $1 billion deal with Russia) via debt servicing and other sectors.
Military rations are sourced through the food ministry budget, so on and so forth.
 

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