Kazi Zahidul Hasan :Finance Minister AMA Muhith will place the proposed national budget for the fiscal year 2016-17 today (Thursday) in the Parliament at 3:00pm with a plethora of initiatives to further stimulate the country’s investment climate and growth.The size of the next budget would be around Tk 3,40,006 crore compared to Tk 2,95,000 crore in the outgoing fiscal year (2015-16).The new budget has been allocated Tk 229,306 crore to the head of non-development expenditure while Tk 1,10,700 crore under Annual Development Programme (ADP).Muhith will place the budget, for 10th time as the Finance Minister, through multimedia presentation. This will be the country’s 45th budget and the 17th of the incumbent Awami League government. The budget is likely to forecast the GDP growth rate at 7.2 per cent while keeping inflation within 5.8 per cent.Muhith earlier said that the government has prepared the budget focusing on growth, investment promotion and development in line with the goal of achieving middle income status economy. He said communications and infrastructure sectors will get the highest allocation in the next budget, followed by education and health sectors.According to budgetary estimation, the revenue collection target of the next budget would be set at Tk 2,42,752 crore which would be 12.04 per cent of the GDP.Of the total projected revenue receipts, Tk 2,03,152 crore will be collected by National Board of Revenue (NBR), while Tk 32,350 crore will come as non-tax revenues and the rest Tk 7,250 crore from non-NBR collection.The budget deficit for the upcoming fiscal year would stand at Tk 97,254 crore from Tk 86,657 crore in the current fiscal year. The budget deficit would be five per cent of the Gross Domestic Product (GDP).The deficit budget would be financed with foreign loan of Tk 39,665 crore while Tk 37,467 crore from banking system and Tk 22,510 crore from saving instruments.The budget is likely to allocate Tk 43,500 crore for social safety net programmes and Tk 22,909 crore to the head of subsidy and cash incentives to various sectors. Muhith in his budget speech is expected to propose a five-tier duty structure for imported goods like capital machinery, basic raw materials, intermediate raw materials and finished products from the existing four tiers to remove inconsistency in the structure and protect to local producers.He is also expected to propose changes in the new VAT law that include package VAT amid strong opposition from the business community. The upcoming budget would also set aside Tk 2,000 crore for recapitalization of the state-owned banks. “The government is focused on presenting a budget with clear objective to spur economic growth, encourage investment through creation of a business- friendly environment and equal distribution of resources and income,” Senior Finance Secretary Mahbub Ahmed told The New Nation on Wednesday. He said necessary fiscal measures will be incorporated in the budget to create a business-friendly environment, improve investor sentiment and revive economic growth.”Proposals will be made to cut corporate tax and tax holiday to encourage new investment. Besides, budgetary measures will be there to protect local industries and their growth,” he added. The Finance Secretary further said that the next budget will propose creation of separate fund for human resource development and implementation of mega projects.The budget for the FY17 will be passed on June 30, the last day of the outgoing 2015-16 fiscal year.The Finance Minister will address a post-budget press conference at the Osmani Memorial Auditorium in the capital at 4:00pm on Friday.
