Analysis of the budget Digital Bangladesh

1 Analysisof the Budget FY2017-18
Dhaka School of Economics
Analysis of the Budget
FY 2017-18
Digital Bangladesh Sector
Submitted to
Dr. AKM Nazrul Islam
Associate Professor
Dhaka School of Economics
Submitted by
Nahin Mahfuz Seam
Bachelor of Economics in Environmental and Resource Economics
Course: Advanced Macroeconomics
Batch:1
Roll: 09

2 Analysisof the budget
Index
What is budget?
Budget data FY 2017-18
Digital BangladeshSector
Perspective Plan/Vision 2021-CharterofChange “DigitalBangladesh”
6th & 7th Five year Plan “DigitalBangladesh”
SDG Goals
A Snapshot of “DigitalBangladesh”Sector
A Comparisonof Budgets for FY2015-16, FY2016-17and FY 2017-18 in
“DigitalBangladesh” Sector
Annual DevelopmentProgram in ICT Sector
Achievements through the implementation of the Budget
Lacking's in the “DigitalBangladesh” Sector
Suggestions

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Budget FY 2017-18
What is Budget?
Government budget is also known as the Annual Financial Statement of the
country.1
Government budget is an estimation of revenue and expenses over a specified
future period of time. It can be compiled and re-evaluated on a periodic basis.
(Investopedia)
There are 3 types of government budget:
Fig: Types of Budget
BalancedBudget: When total revenue is equal to total expenditure that’s called
balaced budget.
Deficit Budget: When total revenue is less then total expenditure that’s called
deficit budget.
Surplus Budget: When total expenditure is less then total revenue that’s called
surplus budget.
1 (Public Budgeting and Financial Management, 2013)

Bangladesh is a developing country. Present government make a vision to achieve
a goal.In 2008 Political Party Awami League annouced “Vision 2021” to make
Bangladesh Digital. Every year government allocate money in the Digital
Bangladesh sector. Size of the total budget is increasing day by day. In FY 2017-
18 fiscal year government announced 2,00,466 cr. Tk. Which is deficit budget and
5% of GDP. In this budget total revenue earning 1,53,331 cr. Tk and total deficit
1,12,275 cr.Tk. (Budget)
(In Cr. Tk)
In the fig. It shows the last three years total budget of Bangladesh government. In
fiscal year 2015-16 total budget was 2, 95,100 cr. Tk and deficit was 86,657 cr.Tk.
Next fiscal year 2016-17 total budget was 3, 40,605 cr. Tk and total deficit was
FY 2015-16 FY 2016-17 FY 2017-18
Total Budget 295100 340605 400266
Deficit Budget 86657 97853 112275
0
50000
100000
150000
200000
250000
300000
350000
400000
450000

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97,853 cr Tk. Now current fiscal year 2017-18 total budget was 2,00,466 cr. Tk
and deficit was 1,12,275 cr. Tk. Education and Technology got highest allocation
16.40% in this year budget.
Digital Bangladesh is a major part of the government’s vision 2021. Digital
Bangladesh means a digital society which ensure an ICT driven knowledge based
society where information will be available in the online and where all possible
tasks of the government, semi-government and also private will be processed
easily by using the modern technology. (Kabir, 2009)
The vision of “Digital Bangladesh” emerged as the first ever development strategy
in the world that deliberately attempts to grip ICTs for poverty reduction and
transformation of the fate of common men and women of Bangladesh. (Strategic
Priorities of Digital Bangladesh, 2011)
The conceptof digitalization of the Bangladesh was moving around the year in
2015 with its mother platform of Access to Information (a2i) program under Prime
Minister's office in Bangladesh. (Islam, 2017)
In 2021 Bangladesh will celebrating her 50th Independence day. So present govt.
make vision 2021and “Digital Bangladesh” is a part of it. It’s an initiative for
changing people’s life style and ICT is the key driver of Digital Bangladesh.
For realization of Digital Bangladesh, a Perspective Plan has been formulated. The
6th Five Year Plan (FY2010-11-FY2014-15) and the 7th Five Year Plan (FY2015-

16- FY2019-20) to work out operational details of how Bangladesh should
proceed. The National ICT Policy-2009 (updated 2015) was developed with a view
to achieving the middle-income status for the nation by 2021 and the developed
country status by 2041. (Hasanuzzaman Zaman and Rokonuzzaman, 2015)
There are four elements to achieve digital Bangladesh goal.
Fig: Key elements of Digital Bangladesh
Digital Government: ‘Digital Government’, a strategic outcome of Digital
Bangladesh, aspires to leverage ICTs in all spheres of government to ensure
delivery of services to those who are the least served. (Strategic Priorities of
Digital Bangladesh, 2011)
Digital
Bangladesh
Digital
Government
ICT in
Business
Human Resource
Development
Connecting
Citizen

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Connecting Citizens: Digital Bangladesh is envisioned to benefit all so as to avoid
the perils of digital divide. Hence, finding sustainable connectivity channels to
ensure the benefits of Digital Bangladesh reach the marginalized and the
disadvantaged are the second outcome area of Digital Bangladesh vision. (Strategic
Human ResourceDevelopment:One of the key outcome of Digital Bangladesh is
to ensure the best use of new technologies to build world-class 21st century skills
in all areas of study especially mathematics, science, and English language through
use of newer and cost-effective delivery tools and digital learning contents. It also
encompasses vocational and ‘lifelong education’ opportunities to the youth and
adults in order to retool them and build newer skills to improve their productivity
commensurate with the needs of the 21st century globalized world. (Strategic
ICT in Business: The last, but not the least, outcome area with three broad
components of Digital Bangladesh are i) use of ICTs to promote access to markets
by the disadvantaged producers and SMEs, ii) promotion of ICT business through
providing services and technology needed to sustain the three other strategic
priorities of Digital Bangladesh, and iii) boosting ICT as an export oriented sector
to earn foreign currency and generate employment. M-banking and electronic

payments as well as electronic business transactions are but a few operational
priorities in this regard. (Strategic Priorities of Digital Bangladesh, 2011)
Perspective plan (Digital Bangladesh)
Perspective planning is a blueprint regarding the objectives and targets of long run
growth. The perspective plan is not just a plan, rather to attain certain objectives
and targets; the perspective plan is divided into certain smaller plans.
(Development Plan, 2014)
Perspective Plan of Bangladesh (2010-2021) is associated with government Vision
2021. This Perspective Plan is the guideline for achieving “Digital Bangladesh”
goal.
To achieving “Digital Bangladesh” goal. Government of Bangladesh needs to
focus on Knowledge economy and Use ICT and science and technology for
national development.
There are some Constraints to ICT related activity
 Lack of capacity: The teachers of universities are not sufficiently trained to
adoptcurrent changes in science and technology.
 Limited access to scientific sources
 Electricity and power instability
 Lack of coordination among ministries

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Some Priorities to ICT related activity for achieving “DigitalBangladesh”
goal.
 Development of a comprehensive master plan
 Framing of a universal access policy
 Developing legal and regulatory environment for ICT development
 Ensuring access to Government information
 Promotion of e-commerce and automation of financial sector
 Establishing E-citizen services
 Enabling E- participation in decision making
 Developing curriculum based computer labs for education institutions
 Expanding digital content in Government websites
 Attracting local investment and FDI in ICT sector through PPP initiative
The above strategies are to be implemented in the short and medium term (5 years)
along with some complementary strategies to be stretched in the 10 year time
frame.2
2 Perspective Plan of Bangladesh(2010-2021),PlanningCommission of Bangladesh

6th
Five Year Plan & Digital Bangladesh Sector
There are some targets in the 6th Five year plan to achieve Digital Bangladesh goal.
In this five year plan government mainly focus on infrastructure development.
Targets
 Expansion of infrastructure facilities for development of ICT sectorfor
transforming the country into Digital Bangladesh.
 Development of ICT skills in public and private sectors for ensuring
productivity and efficiency of the economy and using ICT for good
governance.
 Ensure women participation in all professional trainings.
 Development of national network for establishing connectivity in all
government offices and public key infrastructure for electronic transactions.
 Encouragement of IT enabled services and establishment of ICT incubator,
Software Technology Park and IT Village in suitable locations of the
country.
 Bring all Upazilas and important growth centers under optical fiber network
to provide modern telecom facilities.
 Extend High Speed Internet services up to rural areas through Next
Generation Network (NGN)/ WiMax Technology

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 Construction of modern Data Centers at the important cities to supportIT
enabled service providers.
 Provide Triple Play (Voice, Video & Data) service through a single
converged network.
 Establish a modern Billing Centre for improving quality of revenue
management service. 3
DevelopmentResource Allocations forKnowledge Economyin the Sixth
Plan (crore taka; FY 2011 price):
Ministry FY2011 FY2012 FY2013 FY2014 FY2015
Science
and ICT
170 197 211 236 254
3 6th Five Year Plan(FY2010-11 to FY 2014-15),PlanningCommission of Bangladesh

7th
Five Year Plan & Digital Bangladesh Sector
Targets
 Promote Economic Growth
 Enhance Education Quality through ICT.
 Facilitate Youth Empowerment.
 Enhancing the Equity Aspects of ICT.
 ICT for Greater Transparency, Good Governance and Service Delivery.
 Pro-citizen Civil Service.
 Strengthening Judiciary.
 Responsive Law Enforcement.
 Supportthe development of Atomic energy.
 SupportICT initiatives to expand services in the rural areas (cloud based
service, National helpline, BPO, Incubation Centre, ICT Research &
Development center )658 Development-government master plan
 Supportproductinnovation & creation ecosystem
 Provide physical incentives & Institutional reform to create appropriate
investment climate.
 Establish Virtual University, Multimedia University4
4 7th Five Year Plan,Bangladesh PlanningCommission

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SDG goals & Digital Bangladesh Sector
The Sustainable Development Goals (SDGs) are a collection of 17 global goals set
by the United Nations. The broad goals are interrelated though each has its own
targets to achieve. The total number of targets is 169. The SDGs cover a broad
range of social and economic development issues. These include poverty, hunger,
health, education, climate change, gender equality, water, sanitation, energy,
urbanization, environment and social justice.5 (Nations, 2014)
There are some goals are directly related to achieving “Digital Bangladesh” goal.
SDG Goals Targets
1. No Poverty By 2030, ensure that all men and women, in particular
the poorand the vulnerable, have equal rights to
economic resources, as well as access to basic services,
ownership and control over land and other forms of
property, inheritance, natural resources, appropriate
new technology and financial services, including
microfinance.
5 "Press release– UN General Assembly's Open WorkingGroup proposes sustainabledevelopment goals"

2. Zero Hunger Increase investment in rural infrastructure, agricultural
research and extension services, technology
development and plant and livestock gene banks in
order to enhance agricultural productive capacity in
developing countries, in particular least developed
countries.
4. Quality Education By 2020, substantially expand globally the
number of scholarships available to
developing countries, in particular least
developed countries, small island
developing States and African countries,
for enrolment in higher education,
information and communications
technology and other Subjects.

15 | P a g e
5. Gender Equality Enhance use of enabling technology, in
particular information and
communications technology, to promote
the empowerment of women
8.Decentwork &Economic
growth
Achieve higher levels of economic productivity
through diversification, technological upgrading and
innovation, including through a focus on
high-value added and labor-intensive sectors.
9. Industry, Innovation &
Infrastructure
Supportdomestic technology development,
research and innovation in developing countries,
including by ensuring a conducive policy
environment for,inter alia, industrial diversification
And value addition to commodities.

17. Partnerships for the
goals
Fully operationalize the technology bank and science,
technology and innovation capacity-building mechanism
for least developed countries by 2017 and enhance
the use of enabling technology, in particular
Information and communications technology.

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ICT DIVISION ALLOCATION
For achieving “Digital Bangladesh” goal. Government of Bangladesh
established Ministry of ICT in 2011 and increase budget allocation in the
Information and Communication Technology division.
In the chart, we have seen that in FY 2015-16 total budget allocations was 1214 cr
Tk. In FY 2016-17 total budget allocations was 1839 cr Tk and This fiscal year FY
2017-18 total budget allocation 3874 cr Tk. Which is double than previous year
budget allocation.
FY 2015-16 FY 2016-17 FY 2017-18
ICT Division Budget 1214 1839 3974
0
500
1000
1500
2000
2500
3000
3500
4000
4500
ICT Division budget

Tax and Subsidies
In this budget, government Reduce the duties on the machineries and parts required
to assemble or manufacture items like cellular phone, laptops, pad etc.6
Impose 10% duty on the import of mobile.
Posts and Telecommunications Division has been reduced by Tk381 crore to a
proposedallocation of Tk2,521 crore for the next fiscal year.
Expenditure
In FY 2017-18 budget total 3974 cr. Tk allocate to ICT division. About 3764 cr.
Tk will use for development purposeand 208 cr. Tk will use for non-development
purpose.
6 Budget Speech FY 2017-18
Development Expenditure Non Development Expenditure
Consolidated fund 37647000 2089800
0
5000000
10000000
15000000
20000000
25000000
30000000
35000000
40000000
InThousandTk.
Consolidated fund
FY 2017-18

19 | P a g e
Annual Development Program (ADP) an organized list of projects in various
sectors and allocations for them for a year out of a five-year plan period for
implementation of the government's development policies, programs and
investments in the plan. The ADP is prepared on the basis of the year's
development budget approved by the parliament.7
In FY 2017-18 totals ADP was 153 cr Tk.
In FY 2017-18 Total ADP allocations in ICT division was 281131 lac Tk. It was
the allocation from its establishment. Most of the money use for project
expenditure.
There are 16 running project under ICT division in FY 2017-18. These projects are
helpful for achieving digital Bangladesh goal.
7 Banglapedia
FY 2011-
12
FY 2012-
13
FY 2013-
14
FY 2014-
15
FY 2015-
16
FY 2016-
17
FY 2017-
18
Allocation 2882 13730 96258.29 81141.27 95409 132986 281131
0
50000
100000
150000
200000
250000
300000
Lac.Tk
Allocation

ADP FY-2017-18
Project under Ministry of ICT8
Bangladesh Computer Council (BCC)
 Establishment of IV Tires National Data Centre.
 Bangladesh e-Government ERP
 Innovation and Founding of Entrepreneurship Development Academy.
 Preparation of e-Government Master Plan for Digital Bangladesh.
 Establishment of Software Quality Test and Certification Center.
 National Information and Communication Technology Infrastructure
Development, Info-Government (3rd phase).
 Enriching Bengali language through information technology through
research and development.
 Leveraging ICT for Growth, Employment and Governance.
Ministry's Own
 Development of mobile game and application skills.
 Enhancement of PKI (public key infrastructure) System and capacity
building of CCA office.
 Learning and Earning Development Project.
8 ADP FY 2017-18,PlanningCommission,Bangladesh

21 | P a g e
BangladeshHi-TechPark Authority
 Construction of the primary infrastructure of High-Tech Park, Sylhet (Sylhet
Electronics City).
 Establishment of Bangabandhu High-Tech Park,Rajshahi (Barind Silicon
City)
 Sk. Kamal IT training and Incubation Center
 Supportto Development of Kaliakoir Hi-Tech Park.
 Directorate of Information and CommunicationTechnology
 Establishment of Computer and Language Training Lab in Educational
Institutions all over the Country. 8

Achievements under 6th
& 7th
Five Year Plan
 12 High-tech Park being constructed
 554 Business process outsourcingcenter
 2100 Sk. Rasel Digital Lab and Language Center
 77.88% Have mobile Connection
 9.39% Have Computers
 18.25% Use internet
 133 Innovation
 10920 Women given basic ICT literacy training
 In Natore Sk. Kamal IT & Incubation center
 In Rajshahi The Barendra Silicon city9
 4516 Union Information and Service center.
 Successfulrunning of A2i Project.
 4G mobile internet.
 Launch of Bangabandhu-1 Satellite.
 E-Krishi
 Union Information and Service center.
 Successfulrunning of A2i Project.
 4G mobile internet.
 Launch of Bangabandhu-1 Satellite.
 E-Banking
9 ICT Division & IUT

23 | P a g e
 E-Ticketing
 Export software.
 E-Citizen service
 Connecting with 2nd submarine cable.
 National Help line number “999”
 Land Reform
 Increase employment
 E-Commerce
 E-Education
 Connecting with 2nd submarine cable.
 National Help line number “999”
 Land Reform
 Increase employment
 Wi-Fi service in the Transport
 A software technology park has been built at Karwan Bazar’s Janata Tower.
The fourth floor of the building has been allocated for various companies to
help create new entrepreneurs10. (Hitlar A Halim, 2017)
In future, Hope that we will see more achievement in this sectorand
Bangladesh will become“Digital Bangladesh” by 2021 and fate of Bangladeshi
man and woman will be change.
10 Digital Bangladesh initiativehalfway to completion, Dhaka Tribune,2017

Lacking's in Digital Bangladesh Sector Budget
 Impose 35% CorporateTax on E-commerce Sector.
 Budget doesn’tuse properly.
 Bangladesh is facing acute crisis of skilled computer user due to literacy
problem.
 In Bangladesh, mobile data users have to pay higher price on using
internet data unlike developed countries.
 Mobile Bandwidth Speed rate placed 118 among 120 countries.
 Lack of digitization in the Road Traffic Sector.
 ICT Law
 Some Ministries still not fully digitalized.
 There is lack of proper maintenance of ICT infrastructure including other
accessories for ICT.
 Bureaucratic Complexity
 Weak network coverage in the rural area of Bangladesh

25 | P a g e
Recommendations
In Bangladesh Domestic ICT Industry is expected to generate revenue of US $ 0.9-
1.1 billion in 2017 and grow nearly fivefold to reach US $ 4.6-4.8 billion by 2025.
(Kartik, 2017).There is a huge opportunities for Bangladesh if it became digital.
For achieving digital Bangladesh goal.
Government of Bangladesh needs more allocation of money for ICT and related
sector. Taxation in the ICT sector has to be reduced to smoothen the path of
achieving digital Bangladesh. Development of web content, radio and TV content
that is able to be understood by large sections of the population should be
emphasized and give support. (Chowdhury, 2009) Special incentives should be
given to the private sector and NGOs to develop ICT-based services specifically
targeted towards the under-served. (Chowdhury, 2009) Government should invest
for creating skill labor. Without skilled labor digital Bangladesh just Day dream.
Government of Bangladesh need to focus on increase of use of ICT related service
to rural people. However our dream towards digital Bangladesh has a long way to
go. Digitalization of Bangladesh will depend how bestthe Government can use the
power of ICT to increase the access to information of its people.11
11 Essays,UK. (November 2013). Digital Bangladesh:Concepts of Development. Retrieved from
https://www.ukessays.com/essays/information-technology/digital-bangladesh-concept-of-
development.php?vref=1

Bibliography
(2011). StrategicPriorities of Digital Bangladesh.
PublicBudgetingandFinancial Management.(2013).
(2014). DevelopmentPlan.
Budget.(n.d.). BudgetSpeech FY2017-18.
Chowdhury,M.(2009). Digital Bangladesh:Going Beyond theRhetoric. Dhaka: Forum, DailyStar.
HasanuzzamanZamanand Rokonuzzaman,P.(2015). ACHIEVINGDIGITAL.
HitlarA Halim.(2017). Digital Bangladesh initiativehalfway to completion. DhakaTribune.
Investopedia.(n.d.).Whatisbudget.
Islam,M. M. (2017). Accessto InformationiskeytoDigital Bangladesh. Dhaka Tribune.
Kabir,M. A. (2009). Digital Bangladeshandthe young. TheDaily Star.
Kartik,J.G. (2017). Bettingon the future The BangladeshIT-ITesIndustrypoised forgrowth. Everst
Group Research,3.
Nations,U.(2014). UN General Assembly’sOpen Working Group proposessustainable. Rio.

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