Allowance for the remuneration of civil servants to assist with the increase in the next financial year

| Update:
April 6, 2021 9:03:03 PM

The allocation of funds for salaries and allowances of civil servants will experience an upward trend compared to the next fiscal year after a period of four years.

The government will allocate some 12.2% of the total budget for the next fiscal year 2021-2022 to salaries and allowances of civil servants and other related pockets.

The allocation of this sector will be 12.5% ​​in 2022-2023 of the total budget, according to an official document.

The estimated amount for the next two budgets would be Tk 745.3 billion and Tk 869.8 billion respectively.

After the 2016-2017 financial year, the amount of expenditure on salaries and allowances of civil servants, as a proportion of the budget, has decreased.

In fiscal year 2016-17, the allocation was 18.2%, while it dropped to 14.8% in fiscal year 2017-18.

The amount allocated for fiscal year 2016-17 was Tk 490.43 billion, while the allocation was reduced to Tk 478.5 billion in the following fiscal year.

According to the document, the allocation for fiscal year 2013-14 was Tk 263.94 billion (14 percent) and Tk 288.20 billion (14.8 percent) in 2014-15.

The allocation has seen a strong increase in the 2015-2016 and 2016-2017 finances with 16.7% and 18.2% of the total budget allocation. The amounts during these two fiscal years for salaries and other allowances were Tk 400.50 billion and Tk 490.43 billion.

The document stated that the increase in the allowance was due to the implementation of the new salary scale for civil servants which continued for the two consecutive finances.

Spending in the sector was reduced to 14.8% (Tk 478.5 billion) of the budget for the 2017-2018 fiscal year and to 13.6% (Tk 534 billion) for the 2018-2019 fiscal year.

The trend continued in 2019-2020 with 12.2% and in 2020-2021 with 11.6%.

The allocation for finance was Tk 607.5 billion and Tk 650 billion respectively.

The official document predicted that the expenditure trend for salaries and allowances in the next two budgets would be in the normal trend with an allocation of 12.2% and 12.5% ​​of the total budget.

The country is likely to get a budget of Tk 5,933.14 billion for fiscal year 2021-22, Tk 253.14 billion more than the current budget, aimed at tackling the challenge of the COVID-19 pandemic for the recovery of the economy.

In the midst of the coronavirus crisis, the government adopted a comprehensive plan with four main strategies.

These are to: discourage luxury spending, prioritize government spending that creates jobs, create lending facilities through commercial banks at a subsidized interest rate for affected industries and businesses, and expand coverage of government social protection programs.

Meanwhile, the government has plans to cut its current account spending while increasing capital spending in upcoming budgets 2021-22 and 2022-23.

According to an official document, current expenditure for fiscal years 2021-22 and 2022-23 was estimated at 54.4% and 54.5% of the total budget, respectively.

Salaries and allowances of civil servants, the purchase of goods and services, compensation and moving costs, payment of interest on foreign and domestic loans are part of the current expenditure segment. In addition, “food accounts” and “structural coordination expenses” are also included in these expenses.

In contrast, the government-funded annual development program (ADP) and non-ADP capital expenditure are the two main items of capital expenditure. In addition to loans and advances, development programs from the revenue budget, projects outside the ADP and non-ADP food-for-work program and transfer expenses are also part of these expenses.

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