Crowding Out Effect (Macroeconomics)
Course: Macroeconomics
Sec: 04
Instructor: Biplob Kumar Nandi
Lecturer
Department of Economics
Assignment Submission
Group Name: “Motivators”
Group Members:
|Name: |ID No: |
|Himel Roy |2010-3-10-121 |
|Md. Imrul Hasan |2010-3-10-270 |
|Md. Kamruzzaman |2010-2-10-326 |
|Syed Nagib Mahfuj |2010-3-10-172 |
|Md. Zubair Hossain |2010-3-10-109 |
Assignment Topic:
“Key issues in Budget 2012”
• Is crowding out key challenge for investment in Bangladesh?
Crowding-Out: Govt. often borrows money to fund additional spending. Increased Govt. borrowing tends to increase market interest rates. The problem is that the Govt. can always pay the market interest rate but there comes a point when corporations and individuals can no longer afford to borrow. That problem is called crowding out. Because of this crowding out effect private investment started to fall.
Bangladesh National Budget: 2011-12
The total Budget expenditure of (2011-12) is tk. 1,635.89 Billion. Here we have shown that the budget resources are coming from which sectors. Most of the portion (56.2%) will come from Tax Revenue (NBR).
[pic]
Non-Development & Development Budget: 2011-12
(Taka 1,635.89 Billion)
➢ Govt. will collect tk. 1,18,385 crore
Sec: 04
Instructor: Biplob Kumar Nandi
Lecturer
Department of Economics
Assignment Submission
Group Name: “Motivators”
Group Members:
|Name: |ID No: |
|Himel Roy |2010-3-10-121 |
|Md. Imrul Hasan |2010-3-10-270 |
|Md. Kamruzzaman |2010-2-10-326 |
|Syed Nagib Mahfuj |2010-3-10-172 |
|Md. Zubair Hossain |2010-3-10-109 |
Assignment Topic:
“Key issues in Budget 2012”
• Is crowding out key challenge for investment in Bangladesh?
Crowding-Out: Govt. often borrows money to fund additional spending. Increased Govt. borrowing tends to increase market interest rates. The problem is that the Govt. can always pay the market interest rate but there comes a point when corporations and individuals can no longer afford to borrow. That problem is called crowding out. Because of this crowding out effect private investment started to fall.
Bangladesh National Budget: 2011-12
The total Budget expenditure of (2011-12) is tk. 1,635.89 Billion. Here we have shown that the budget resources are coming from which sectors. Most of the portion (56.2%) will come from Tax Revenue (NBR).
[pic]
Non-Development & Development Budget: 2011-12
(Taka 1,635.89 Billion)
➢ Govt. will collect tk. 1,18,385 crore