The storm of discussion and criticism about the budget started even before the budget came. Thousands of advices or recommendations in each sector. But how this budget process came about or when it started is quite interesting.
The word ‘budget’ originates from the word ‘bogeti’. It is a Greek word. Which means wallet, where money can be kept. It also needs to keep an account. This method was first discovered during the time of the Greeks. It later became institutionalized in Britain.
If we look at the pages of history, we can see that it originated about 300 years ago. Sir Robert Walpole introduced the first national budget and fiscal policy in the British Parliament in 1720.
He was vice-chancellor of the fund of South Sea Babli, a British joint stock company founded in 1711. He prepared the first budget to regain the morale and confidence of the people when the shares of the government company collapsed. It gives a big subsidy to the shareholders. Thirteen years later, Walpole proposed to impose excise duties on various products such as wine and tobacco in his revenue plan to reduce the government’s tax burden.
The general public was so outraged that Wig Pierre William wrote a pamphlet entitled ‘The Budget Opened, Or, an Answer to a Pamphlet‘. The term budget was first used in the government’s fiscal policy. Later the plan to levy tax was gradually scrapped.
In the early eighteenth century, the imposition of tariffs on goods in the annual accounts of the budget began, and by 180 the budget was fully established. From then on it started to be used in different countries of the world. In the budget session of the House of Commons of Great Britain in 184, George Greenville spoke of the Stamp Act.
The UK was initially budgeted in the spring. They considered this day as budget day. Because land revenue was collected from the people in April and most of the money came from the agricultural sector.
Abu Ahmed, a professor of economics at Dhaka University, said Bangladesh, like other countries in the world, prepares a budget every fiscal year. However, one of the problems of this country’s budget is that it does not have a clear idea about the cost. The budget aspect of Bangladesh is much weaker than other countries. The rate of corporate income tax in the budget is much higher than other countries. While the corporate income tax is less than 15 percent in the United States and 23 percent in India, it is 25 to 45 percent in Bangladesh.* (source)
Companies listed on the stock exchange have to pay tax again on the distributed profits after distribution of profits, which discourages them from entering the stock market. If the government reduces the corporate income tax from 5 percent to 20 percent in the forthcoming budget, many multinational companies will join the stock market. This will make domestic companies stronger in a competitive world.
In modern industrial economy, this budget plays a major role in managing the economic process of the government. Finance Minister Abul Maal Abdul Muhith will present the 47th budget this year. This will be his 11th budget. Tajuddin Ahmed presented the first budget of Bangladesh.