Budget to total 16.5 percent of total GDP

Finance minister AMA Muhith has proposed a budget of Tk 1,13,819 crore for FY2009-10, or 16.5 percent of total GDP.

In his budget speech, Muhith has set the target for revenue collection at Tk 79,461 crore. The budget deficit will amount to Tk 34,358 crore.

Muhith proposed to meet the deficit by loans totalling Tk 20,555 crore from internal sources while another Tk 13,803 crore from foreign support The finance minister forecast 6 percent GDP growth for 2009-10.

Muhith began announcing the annual outlay in parliament from 3.15pm Thursday, broadcast live on state-run TV and radio.

The first budget of the new government comes with the back drop of global recession and Awami League's expansive electoral pledges.

Prime minister Sheikh Hasina was present in the House, while opposition leader Khaleda Zia remained absent as BNP has been boycotting the budget session over a seating dispute.