Ministry Of Finance

Outlines-
 12021016.Meherun Nesa Kotha:- Introduction.
 12021020.Akrer Zaman:-Divisions of Ministry of Finance.
 12021034.Tajmira Toma:-Purposes of Ministry of finance.
 12021035.Ashrafunnahar Tumpa: -Ministry of finance on budget and economic
policy.
 12021039.Nusrat Zahan:-Ministry of finance on fiscal and monetary policy.
 12021046.Nirmal Chandra Singha:-Ministry of finance on international
financial
 relation.
 12021052.Md. Suman Shaha:-Challenges of ministry of finance.
 12021064.Md. Risan: -Conclusion.
 Introduction
 The ministry of finance is a crucial government agency in Bangladesh
that plays an important role in the economic activities, development
and financial management of the country.
 It is hugely responsible for managing the country’s fiscal policies,
revenue collection, and expenditure management which are the main
objectives of a country’s financial conditions.
 ‘MINISTRY OF FINANCE” also has a significant role in the formulation
and implementation of the annual budget.
 The ministry works closely with other government agencies, financial
institutions, and international organizations also to promote economic
growth, create employment opportunities and ensure social welfare.
 Ministry of finance is typically run by a government official who is appointed
by the head of state or head of government. This person is often referred to
as the “Minister of Finance”.
 The below chart shows the list of finance minister’s of Bangladesh from 1980
to 2019.
Divisions and structures of ministry of
Finance,Bangladesh.

 Division: It contains major four divisions:

 1.Finance Division(Budget preparation. Budget execution. Revenue collection.
Debt management. Coordinates fiscal policies)
 2.Economic Relations Division(Economic Relation Division(ERD)This Division is
furnished in hierarchy fashion following wings:
 Wing-1:America and JapanWing-2:World BankWing-3:Admin and middle east
Wing-4:United NationsWing-5:ADBWing-6:Coordination and NordicWing-
7:EuropeWing-8:Asia,JEC and F&FWing-9:FABA ICTWing-10:Development
Effectiveness.
 3.Internal Resources Division(Internal Resources Division(IRD)Directorate
By:√Bangladesh Customs√Chattogram Custom House√National Board of
Revenue√Dhaka Custom House.
 4.Bank and Financial Institutions Division:It is a Bangladesh government
division under the ministry of Finance. The financial institutions Division is
responsible for managing and regulating financial institution in Bangladesh.
Purposes Of Ministry Of Finance

 The Ministry of Finance is a government agency responsible for managing the financial
resources of a country. The following are five purposes of the Ministry of Finance
 Budget Preparation: The Ministry of Finance is responsible for preparing the national
budget, which outlines the government's financial priorities and expenditures
 Fiscal Policy Formulation: The Ministry of Finance formulates and implements the
fiscal policies of the government to ensure a stable and sustainable economy.
 Public Debt Management: The Ministry of Finance manages the government's
borrowing and debt repayment activities to ensure fiscal stability and sustainability.
 Financial Regulation: The Ministry of Finance is responsible for regulating financial
institutions, including banks, insurance companies, and investment firms, to promote
stability and growth in the financial sector.
 Economic Analysis: The Ministry of Finance conducts economic analysis to assess the
state of the economy, identify emerging trends, and recommend policy changes.
Ministry of Finance on Budget and
Economic Policy
 Budget(A budget is a spending plan based on income and expenses. In other
words, it's an estimate of how much money you'll make and spend over a
certain period of time, such as a month or year.)
 Composition of Expenditure by ministry of finance:
Total public expenditure (BDT 6.78 trillion) has increased 14.2% from the previous
budget. Sector-wise segregation of expenditure shows that public services,
education and technology, and transport and communication have been the top
three sectors just as it was in the previous budget. However, the budgeted
expenditures in these sectors increased by 21%, 14%, and 24% respectively from
the revised budget for 2021 – 22 [2]. Other than that, the agriculture sector now
has been allocated 6.2% of total expenditure and the health sector 5.4%. From
the previous budget, these sectors have been allocated 20% and 14% more. In
total, a 13% increase in the allocation has been earmarked for interest payment.
Ministry of finance on fiscal policy and
monetary policy
 The main goal of fiscal policy is to extent revenue area through strengthening
revenue earning activists and expenditure management. With a view to
develop Bangladesh as a Middle-income country by 2021 through poverty
alleviation and socioeconomic development of the people.
 The government expenditure as percentage of GDP has been on the increase.
Government expenditure increased to 17.45 percent in FY 2021-22 from 14.41
in FY2020-21.
 A well-balanced fiscal policy plays a very important role in meeting spending
priorities with available resources, creating congenial environment for
achieving faster economic growth and maintaining macroeconomic stability of
the country Which is directed by the ministry of finance of Bangladesh.
 Monetary policy
Monetary policy is an economic policy that manage the size and growth rate of
the money supply in an economic. It is a powerful tool to regulate
macroeconomics variables such as inflation and unemployment.
And Ministry of finance plays an important role to regulate monetary policy by
coordinating with the central bank and formulating fiscal policies that
complement the monetary policy objectives.
Ministry of finance on international
financial relation
 The Ministry of Finance plays a critical role in managing a country's financial affairs
and facilitating its international financial relation.
 The ministry of finance is responsible for managing the finance of a country. Here the
important mechanism is included-(1) budgeting (2) taxation(3) debt management.
 The ministry of finance works closely with other government agencies including-
(1) Central Bank(2)financial regulators.
 International financial relations involves the interaction between different countries'
financial system. This includes - trades -investment - financial transaction.
 Another critical role of the ministry of finance is international financial relations is
managing a country's foreign exchange reserve. The ministry of finance also plays a
vital role in negotiating and implementing international financial agreement. This
including –
1) trade agreement 2) financial assistance program 3) Debt restructuring.
 Challenges of Ministry of Finance

Figure of budget 2022-23 :

 Finance ministry identifies 7 major economic challenges-
 -keeping macroeconomic stability
 -accelerating economic growth
 -keeping inflation at a tolerable level
 -removing barriers to private sector growth
 -reducing poverty further
 -bringing about income equity of regions and classes
 -guaranteeing food security.
Conclusion

 In conclusion, the Ministry of Finance in Bangladesh plays a crucial role in

managing the economic policies and financial activities of the country. It is
responsible for formulating and implementing various economic policies, such
as budget planning, revenue mobilization, public debt management, and
financial sector regulation.
 The ministry also works to ensure transparency and accountability in the
financial management of the country, which is crucial for maintaining public
trust and confidence in the government.
 In recent years, the Ministry of Finance has undertaken various initiatives to
improve the country's financial sector and promote economic growth,