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The Legal Framework:

The constitution reflects the founding fathers concerns about governmental intervention in the
economy.In this discussion I discuss constitutional provission related to the spending and taxing
activities of the govt. of Bangladesh. The constitution of the Peopless Republic of Bangladesh
1972 provides the basic legal framework for the governmental budgeting process.Articles 81 to
92 of the constitution outline the requirement of the budgetary procedures.In particular:

82. No Money Bill, or any Bill which involves expenditure from public moneys, shall
be introduced into Parliament except on the recommendation of the President:
Provided that 1[in any Mony Bill] no recommendation shall be required under this
article for the moving of an amendment making provision for the reduction or
abolition of any tax.

83. No tax shall be levied or collected except by or under the authority of an Act of Parliament.

85. The custody of public moneys, their payment into and the withdrawal from the Consolidated
Fund or, as the case may be, the Public Account of the Republic, and matters connected with or
ancillary to the matters aforesaid, shall be regulated by Act of Parliament, and until provision in
that behalf is so made, by rules made by the President.

87. (1) There shall be laid before Parliament, in respect of each financial year, a
statement of the estimated receipts and expenditure of the Government for that
year, in this Part referred to as the annual financial statement.

88. indicates charged items of expenditure or consolidated fund.

89.indicates that other items of expenditure are submitted to parliaments in the


form of demands for grant or may be voted upon.

91.deals with supplementary budget requirements for the current year.

Size of the Government:


Size of the government measured by either the number of workers in the public sector or
Government spending as percent of GDP.However,inferences about the size of government
drawn from the number of workers it employscan be misleading.thats why Government
spending as percent of GDP method is the appropriate approach to measure the Size of the
government. The government size of Bangladesh and other countries is calculated as the total
government spending as percent of GDP. Government spending, percent of GDP rankings around
the world.

The labor force of public sector in Bangladesh from 1990 to 2014 are 46,322,706
to78,976,778 according to World Bank.
The World Bank provides data for Bangladesh Government spending as percent of GDP from
1960 to 2016. The average value for Bangladesh during that period was 5.77 percent with a
minumum of 3.16 percent in 1975 and a maximum of 13.38 percent in 1970.

General government final consumption expenditure includes all government current


expenditures for purchases of goods and services (including compensation of employees).Interes
payments,Transfers of income to people,business or other governments. It also includes most
expenditures on national defense and security, but excludes government military expenditures
that are part of government capital formation.

Sometimes size of the govt. is misleading by following reasons:

1. Inflation
2. Poppulation growth over time

Bangladesh: Government spending as percent of GDP


: For that indicator, The World Bank provides data for Bangladesh from 1960 to 2016. The
average value for Bangladesh during that period was 5.77 percent with a minumum of 3.16
percent in 1975 and a maximum of 13.38 percent in 1970.

The government size of Bangladesh and other countries is calculated as the total government
spending as percent of GDP. Government spending, percent of GDP rankings around the world.

World Bank definition: General government final consumption expenditure (formerly general
government consumption) includes all government current expenditures for purchases of goods
and services (including compensation of employees). It also includes most expenditures on
national defense and security, but excludes government military expenditures that are part of
government capital formation.
Overview per country
Country
1990
2014
Bangladesh
46,322,706
78,976,778

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