Bangladesh and Global Studies - Chapter 13 (The financial and banking systems of the Government of Bangladesh.)

Public Finance means ________

the policies and methods regarding the income and expenditure of the state.

Quote of Professor Dalton regarding Public Finance

“Public finance is concerned with the income and expenditure of the government and with the adjustment of one to other”

What are the sources of income of Bangladesh Government?

1. Tax Revenue

2. Extra Tax Revenue

What is tax revenue?

The income which is received from the taxes imposed on people and on various business firms and industries by the government.

What is the main source of income of the Government of Bangladesh?

The Customs

What is income tax?

The tax which is imposed on the personal income of the people is called income tax.

What is excise duty?

The tax which is imposed on the goods produced and used inside the country

What is the Customs?

The tax imposed on the exported and imported goods of the country.

What is the purpose of excise duty ?

1. Revenue collection

2. Reducing the consumption of various harmful goods.

On what VAT (Valued Added Tax) is imposed?

Imported and locally produced goods, some fixed service sectors.

what is vehicle tax?

The tax paid for the registration of vehicles.

The registration fee is paid for ______

deed registration

Deed

is a legal document that proves ownership of an asset.

What is land revenue?

The tax paid to the government for the possession and use of land.

Up to how much land the government have exempted the land tax?

25 bighas

From what does government get dividend and profit?

Various financial organizations (banks, insurance companies) and non-banking financial organizations (park, zoo) etc.

How does government earn from non-judicial stamps?

Government earns a huge amount of money from the stamps used for various documents and applications regarding judiciary, passport and exchange bills, etc.

What are the notable economic services of the government?

Tourism, banking, travel and service.

In what revenue category the general administration falls into?

Extra tax revenue.

What is Toll?

The charge which is to be paid by the transport drivers/owners for the use of a particular bridge or road is called ‘Toll’.

What is levy?

The tax which is imposed on and collected from people at particular time on a particular purpose.

What is ‘VAT’?

The tax which is imposed on the value o imported and locally produced goods and on some fixed service sectors and collected from the customers or consumers is called VAT.

Define dividend.

A portion of the profit, cash and reward that a company gives to its shareholders at the end of the year is called “dividend”.

Define “service” in terms of economics.

The efforts, assistances or actions performed or provided by any individual, group or organization to meet the need of a person is called service.

What is the main of head of expenditure of Bangladesh Government?

Defense.

What are unexpected expenditure of the government?

Every year the government of Bangladesh has to spend enough money to solve emergency situations created by natural disasters by flood, cyclone, water upsurge etc.

How does government spend money in the Judiciary and Jail divisions?

A huge amount of money is spent on the salary and allowance of the officer-employees of the judiciary and jail divisions and on the management of this two divisions.

Highest financial organization of the country

Central bank

Role of Commercial bank

1. One of the main objective is to receive deposit rom the people

2. Loan disbursement

3. Creating medium of exchange

4. To cash bill of exchange on settling discount

5. Helps in settling the dues of buyers and sellers in case of international and foreign trade.

Central bank works as the representative of which organizations?

World Bank and IMF

Bill of Exchange

A bill of exchange is a written order binding one party to pay a fixed sum of money to another party on demand or at some point in the future.

Fixed Deposit

The deposit which can be withdrawn after a specific period of time.