An Analytical Example for Developing Countries: The More Amounts in Budgets, the More Poverty Reduction in Bangladesh

Abstract

The study gives the grievous concerned about the national budgets in Bangladesh that have a positive effect on poverty reduction process in developing countries all over the world. Recently, Bangladesh has been performing well from the growth perspective (e.g., GDP growth rate was on average 5.8% per year during 2000-2010 by CDP, 2011). This research provides the last seven fiscal years’ national budgets that are increasing in amounts in regard to public demands and national growth. The study also deals with the current status of poverty rate in Bangladesh. This shows that how fiscal policy could play vital roles in the poverty reduction process. As a result, if the National budgets are bigger in amounts, well-designed and effectively implemented in a country the poverty will be reduced gradually. Finally, based on the findings, this study a number of suggestive policy measures that the planners and implementers of fiscal policy may consider for the future development of the developing countries in the world like Bangladesh.

Keywords: Developing Country; Poverty Reduction; GDP rate; Budgets; Fiscal Policy; Per Capita Income; and Growth rate