Non-tax revenue notches down

Falls 33pc short of target in 10 months of FY ‘22

JASIM UDDIN HAROON | Thursday, 18 August 2022

Non-tax revenue (NTR), the second-biggest source of government revenues, contracted more than 33 per cent in ten months to last April, with its impact on total resource mobilisation in the last fiscal.

Sources say lesser-than-targeted collection of fees and receipts from a number of heads reduced the NTR collection.

The total July-April receipts in the fiscal year 2021-22 came to Tk 303.20 billion, down by 33.39 per cent from that of the same period of the FY 2020-21, according to an official statement prepared by the finance division of the Ministry of Finance (MoF).

People at the division told the FE that there were many heads of the NTR that were lower than corresponding previous period's. They named interest, administrative charges and fees, and income from the department of immigration and passports.

The interest which usually comes from investment hurtled down nearly 80 per cent to Tk 15.02 billion during the July-April period up to which the counts were available.

The earnings from "other NTR and receipts" shrank nearly 53 per cent to Tk 134.13 billion during the period under review.

"Actually, many services sectors that render services to people had a slump due to the Covid-19, leading to falling earnings from a number of sources of the NTR," says an official at the finance division.

He mentions that earnings from the investments were also impacted by lower interest rates on the financial market.

The government estimated Tk 430.03 billion as NTR in FY 2022. There was a robust receipt of NTR worth Tk 588.61 billion in the previous FY 2021.

During the fiscal year, the government enacted a law in parliament to receive additional earnings from the state-owned enterprises, especially from energy-related ones, in view of the crunch time for resources owing to multiple crises on the economic front.

This shortfall of the revenues, however, didn't affect budget execution as the government resorted to belt-tightening in spending in the last fiscal year, the official says.

Development spending was at least 7.0-percent lower than estimated for the fiscal 2022.

However, there were many heads that fetched much more than the earmark for the same reference period.

The receipts as dividends and profits from the state-owned enterprises surged to Tk 43.31 billion during the period under review-up more than 227 per cent.

Receipts from administrative fees and charges were up at Tk 18.95 billion in the July-April period in a rise by more than 10 per cent, year on year.

Government exchequer got Tk 7.01 billion during the period under review. It was Tk 6.49 billion or more than 8.0-percent lower during July-April of the FY 2021.

However, the total government revenue mobilization during the period was Tk 3.068 trillion, higher than the receipt of Tk 2.533 trillion during the same period in FY 2021.

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