Finance Minister Abul Maal Abdul Muhith on Thursday placed Tk 2,50,506 crore national budget for the fiscal 2014-15 before the Jatiya Sangsad attaching utmost priority to luring investments for attaining a higher GDP growth.The size of the proposed budget for the fiscal year 2014-15 is around 16 per cent bigger than the current fiscal year’s revised budget. The original size of the budget for the current FY14 was Tk 2,22,491 crore, which was later revised down to Tk 2,11,220 crore.In his 160-page budget speech, Muhith said, “We will create investment-friendly environment and continue to peruse essential institutional reforms with a view to encourage private sector investment.” Steps would be taken to reduce bank interest rates for ensure free flow of credit to the private sector which will eventually enhance investment.”He also said, the government of Sheikh Hasina is adamant and sincere regarding maintaining political stability to ensure a congenial environment for the investors Prime Minister Sheikh Hasina, leader of the opposition Rawshan Ershad, Jatiya Party Chief HM Ershad and Cabinet Ministers were present when Muhith placed the budget for the FY 15. According to the budget document, the aggregate revenue collection under the proposed budget, has been targeted at Tk1, 82,954 crore, which is 13.7 per cent of the Gross Domestic Product (GDP).Of the total projected revenue receipts, Tk 1,49,720 crore will be collected by National Board of Revenue (NBR), Tk 5,572 crore from Non-NBR sources. In addition, Tk 27, 662 crore will be collected from Non-Tax Revenue.The allocation for non-development and other expenditure has been estimated at Tk 1,70191 crore. Besides, Tk 80,315 crore has been allocated to the Annual Development Programme (ADP), which is 18 per cent or Tk 15,315 crore up from the revised ADP of Tk 60,000 crore for the current fiscal year. The original size of the ADP for the current fiscal (2013-14) was 65,870 crore.However, the overall budget deficit has been estimated at Tk 67,552 crore that is 5 per cent of GDP and more than one-fourth of the total budgetary outlay.Out of the total amount, Tk 43,277 crore will be financed from the domestic sources and Tk 24,275 crore from external sources. Of the domestic financing, Tk 31,221 crore will come from the banking system and Tk 12,056 crore from the sale of savings certificates and other non-banking sources.In the proposed budget, the Finance Minister said the target of GDP growth for the next fiscal year would be 7.3 per cent, and in 2021 it would be 10 per cent.The growth target was set at 7.2 per cent for the outgoing fiscal year but according to the preliminary estimate of Bangladesh Bureau of Statistics (BBS) growth in FY 2013-14 will be 6.12 per cent. The Finance Minister, in his budget speech said, the general inflation will be hovering around 7 per cent by June 2014 and will come down further at the end of the FY 15. Muhith has proposed to raise the income tax slab for women tax payers and those of 65 years and above by Tk 25,000 to Tk 2.75 lakh. However, the threshold of taxable income of individual tax payers remains the same of Tk 2.2 lakh.Placing his budget proposal before the parliament, AMA Muhith proposed to reduce corporate tax rate for non-listed companies from 37.5 per cent to 35 percent to ensure employment opportunities for our workforce as well as to attract foreign direct investment (FDI).He also proposed to reduce turnover tax of both companies and partnership firms from 0.50 per cent to 0.30 per cent.To turn Bangladesh to a middle-income country, the minister proposed tax holiday, tax rebate and change of tax rates.To create investment-friendly atmosphere for industrialisation and economic progress, the Finance Minister proposed to extend the existing tax holiday facilities from June 2015 to June 2019. “I also propose to reinstate the facilities of accelerated depreciation alternative to tax holiday for the new industrial entrepreneurs.” Just before the start of the parliamentary session around 3:30pm, the cabinet approved the proposed budget. The cabinet members sat in a meeting at the parliament complex at 1:10pm and gave the go-ahead to the new budget. Prime Minister Sheikh Hasina presided over the meeting.
