Bangladesh's parliament has approved budget spending of 643.83 billion taka ($10 billion) for the fiscal year 2005-2006, an increase of more than 12 percent over a year earlier. However, the government aims to limit the budget deficit to 4 percent of gross domestic product in 2005-2006, unchanged from 2004-2005.
Finance and Planning Minister M. Saifur Rahman said the budget aimed to foster economic growth and reduce poverty, which affects nearly half the country's 140 million people.
In addition, the budget has almost doubled subsidies for the agricultural sector, which contributes 30 percent of gross domestic product and which supports most Bangladeshis.
The budget came into effect on Friday after getting final approval late on Thursday after weeks of a parliamentary debate that was boycotted by the main opposition Awami League party.
Saifur said he expected GDP to grow more than six percent 2005-2006, picking up from close to 5.5 percent in the 2004-2005.
Bangladesh's fiscal year begins on July 1.
The budget raises agricultural subsidies to 12 billion taka in 2005-2006 from 6.44 billion taka in 2004-2005.
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