Government wants more share in interest income of educational institutions

Income or funds of public universities are invested in various sectors. 10 percent tax is deducted at source on that profit. In the new budget, the tax at source has been increased to 20 percent. Similarly, tax will be deducted at source at the rate of 20 percent from the interest income of Trusts, Private Associations and MPOs.

Apart from this, a tax deduction of 10 percent has been proposed on the income from interest of various funds and primary universities.

Finance Minister Abul Hasan Mahmud Ali made such a proposal in the budget of the fiscal year 2024-25 in the National Parliament on Thursday.
He has proposed a budget of Tk 7 lakh 97 thousand crore for the financial year 2024-25.

In the budget of the new financial year, the government will take a loan of 1 lakh 37 thousand 500 crores from the banking sector. 5 thousand 105 crore more than the proposed budget of the current financial year 2023-24. In the proposed budget of the current financial year, the target of borrowing from the banking sector was fixed at 1 lakh 32 thousand 395 crores.

Compared to the current fiscal year, the size of the proposed budget for the next fiscal year (2024-25) has increased by 4.62 percent. The main budget of the current fiscal year 2023-24 is 7 lakh 61 thousand 785 crores. About one-third of the next fiscal year’s budget will be financed from domestic and foreign loans.

Although the size of the budget for the fiscal year 2024-25 has increased, the deficit is decreasing. Compared to the proposed budget of the current (2023-24) fiscal year, the deficit in the next fiscal year’s budget is estimated to be Tk 5,785 crore. Without grants, the budget deficit is estimated at 2 lakh 56 thousand crores. However, the total deficit including grants will stand at 2 lakh 51 thousand 600 crores.