Staff Reporter :
The proposed budget is ‘pro-people and progressive, Finance Minister AMA Muhith on Friday said adding that his government would put all-out efforts to achieve the budgetary goals set for the fiscal year (FY) 2016-17.
Referring to criticism that the proposed budget is not implementable he said “I do not agree with people making such comments. In my view, the government has the ability to implement the budget since it enhanced the capacity of the agencies concerned.”
Muhith made the comments in a post-budget press conference at the Osmani Memorial Auditorium in the city yesterday.
He said, “Budget is an estimation…and always has been an estimation. Such estimation may not be fulfilled always. But if we look into the implementation trend in last seven years, the rate was almost 95 per cent. So, I am optimistic about full implementation of the next fiscal’s budget”.
Replying to a question on 35.4 percent rise in revenue target, Muhith said, “This is a really high ambitious target than that of the outgoing fiscal year but the NBR has the human resources and capacity to achieve the target,” he added.
The revenue target for the next fiscal has been set at Tk 2,42,752 crore. Out of the total target,
the National Board of Revenue (NBR) has to mobilize Tk2,03,152 crore. Muhith said the NBR’s revenue collection in the last year was not satisfactory although the average growth of total revenue collection in the last five years was 11.9 per cent. “NBR showed an unfortunate performance last year. They must have done better. But I am hopeful that the board may achieve next fiscal’s target carrying out their responsibilities properly,” he added.
Muhith mentioned that the capacity of NBR’s revenue collection has increased significantly in these years following automation in its key departments and setting up tax offices at upazila levels.
“We have already chalked out a plan to mobilize more revenues to achieve the next fiscal’s target. The task is challenging but we must take the challenge,” said Muhith.
Muhith said the proposed budget has given enhanced allocations to energy, communication, health and education sectors. Agriculture also will get the highest chunk of allocation. Job creation and more income generation are two other objectives of the budget, he said.
The proposed budget has projected GDP growth rate at 7.2 per cent and inflation within 5.8 per cent. ‘I hope we will be able to attain the GDP growth target in the next fiscal keeping the inflation rate within the projected level taking advantage of fresh escalation to investment and lower commodity prices,” added Muhith.
Muhith claimed that he would see a big push in both private and foreign investment as a result of prevailing political stability in the country.
“The provision of whitening undisclosed income remains in the existing law and the government will further continue the provision. Under the existing law, it will allow people to bring their undisclosed income to legal channels while paying certain amount of penalty,” he added.
Regarding the proposal to slap additional duty on SIM card related services, Muhith said, taxes on SIM cards had been ‘significantly’ reduced in the current budget, resulting in a revenue drop from the telecom sector.
“In order to enhance revenue collection from this sector, I have proposed to increase the rate of supplementary duty on SIM card related services from 3 per cent to 5 per cent,” he added. Muhith also said fuel price cut was an ongoing process after the government reduced the prices in April. I have already consulted the issue with the prime minister but the decision to cut fuel prices further depends on energy ministry. He, however, said the crude oil prices already goes up to $50 a barrel and it should be taken into consideration while going for further review of fuel prices in domestic market.
Muhith also said the government plans to introduce pension scheme for the private sector employees by the year 2019. “The pension for the private sector has to be incorporated in the National Social Safety Net programme,” he added. Commerce Minister Tofail Ahmed, Planning Minister AHM Mustafa Kamal, Agriculture Minister Matia Chowdhury, Information Minister Hasanul Haq Inu and State Minister for Finance Abdul Mannan were present at the press conference.
Finance Secretary Mahbub Ahmed, NBR Chairman Nojibur Rahman and secretaries of related ministries also attended it.
The proposed budget is ‘pro-people and progressive, Finance Minister AMA Muhith on Friday said adding that his government would put all-out efforts to achieve the budgetary goals set for the fiscal year (FY) 2016-17.
Referring to criticism that the proposed budget is not implementable he said “I do not agree with people making such comments. In my view, the government has the ability to implement the budget since it enhanced the capacity of the agencies concerned.”
Muhith made the comments in a post-budget press conference at the Osmani Memorial Auditorium in the city yesterday.
He said, “Budget is an estimation…and always has been an estimation. Such estimation may not be fulfilled always. But if we look into the implementation trend in last seven years, the rate was almost 95 per cent. So, I am optimistic about full implementation of the next fiscal’s budget”.
Replying to a question on 35.4 percent rise in revenue target, Muhith said, “This is a really high ambitious target than that of the outgoing fiscal year but the NBR has the human resources and capacity to achieve the target,” he added.
The revenue target for the next fiscal has been set at Tk 2,42,752 crore. Out of the total target,
the National Board of Revenue (NBR) has to mobilize Tk2,03,152 crore. Muhith said the NBR’s revenue collection in the last year was not satisfactory although the average growth of total revenue collection in the last five years was 11.9 per cent. “NBR showed an unfortunate performance last year. They must have done better. But I am hopeful that the board may achieve next fiscal’s target carrying out their responsibilities properly,” he added.
Muhith mentioned that the capacity of NBR’s revenue collection has increased significantly in these years following automation in its key departments and setting up tax offices at upazila levels.
“We have already chalked out a plan to mobilize more revenues to achieve the next fiscal’s target. The task is challenging but we must take the challenge,” said Muhith.
Muhith said the proposed budget has given enhanced allocations to energy, communication, health and education sectors. Agriculture also will get the highest chunk of allocation. Job creation and more income generation are two other objectives of the budget, he said.
The proposed budget has projected GDP growth rate at 7.2 per cent and inflation within 5.8 per cent. ‘I hope we will be able to attain the GDP growth target in the next fiscal keeping the inflation rate within the projected level taking advantage of fresh escalation to investment and lower commodity prices,” added Muhith.
Muhith claimed that he would see a big push in both private and foreign investment as a result of prevailing political stability in the country.
“The provision of whitening undisclosed income remains in the existing law and the government will further continue the provision. Under the existing law, it will allow people to bring their undisclosed income to legal channels while paying certain amount of penalty,” he added.
Regarding the proposal to slap additional duty on SIM card related services, Muhith said, taxes on SIM cards had been ‘significantly’ reduced in the current budget, resulting in a revenue drop from the telecom sector.
“In order to enhance revenue collection from this sector, I have proposed to increase the rate of supplementary duty on SIM card related services from 3 per cent to 5 per cent,” he added. Muhith also said fuel price cut was an ongoing process after the government reduced the prices in April. I have already consulted the issue with the prime minister but the decision to cut fuel prices further depends on energy ministry. He, however, said the crude oil prices already goes up to $50 a barrel and it should be taken into consideration while going for further review of fuel prices in domestic market.
Muhith also said the government plans to introduce pension scheme for the private sector employees by the year 2019. “The pension for the private sector has to be incorporated in the National Social Safety Net programme,” he added. Commerce Minister Tofail Ahmed, Planning Minister AHM Mustafa Kamal, Agriculture Minister Matia Chowdhury, Information Minister Hasanul Haq Inu and State Minister for Finance Abdul Mannan were present at the press conference.
Finance Secretary Mahbub Ahmed, NBR Chairman Nojibur Rahman and secretaries of related ministries also attended it.
