Rejaul Karim Byron

AHM Mustafa Kamal, whose life has been full of struggles, had dreamt of becoming the finance minister, so he consciously entered politics.

The government is preparing the budget in a cautious way, refraining from increasing expenditure by too much of an extent, keeping in mind the ongoing global economic crisis stemming from the pandemic and Russia-Ukraine war, State Minister for Planning Shamsul Alam said.

The government plans to boost exports by promoting large industries and send a record number of migrant workers abroad to raise foreign currency reserves.

Taking into account the Ukraine war, the World Bank reduced Bangladesh’s economic growth projection to 6.7 percent for the next fiscal year from its January forecast of 6.9 percent.

The government is likely to hike value-added tax (VAT) on broadband internet and impose a 5 per cent VAT on handsets manufacturing in the upcoming budget, which will increase handset and internet prices from next fiscal year. 

The government is going to discard its plan to bring all elderly poor under its social safety net programmes in 100 more upazilas in a bid to prevent the non-poor from misusing the support.

The government has set an inflation target of 5.5 per cent for the next fiscal year although the prices of basic commodities are sitting at elevated levels for higher commodities prices globally amid lingering supply chain disruptions and the Russia-Ukraine war.

The government is not keeping a separate allocation for vaccines in the next fiscal year’s budget as it pulls back from vaccine procurement given the high inoculation rate and low infection rates.

Foreign assistance disbursement jumped 58 per cent in the current fiscal year’s July-April period thanks to spending for vaccination, one-time budget support and implementation of mega projects, including that of the Russia-funded Rooppur nuclear power plant. 

Bank accounts with upwards of Tk 1 crore in balance are set to face a higher excise duty next fiscal year as the government looks to collect more taxes from the relatively well-off to get close to the lofty revenue collection target.

Wishful thinking -- is what best describes the maiden tax amnesty campaign the government is planning to lure money back home next fiscal year.

There is bad news for consumers of imported luxury items: they will get dearer thanks to the tax measures the National Board of Revenue is preparing for the new fiscal year that begins on July 1.

Work for the Dhaka-Ashulia Elevated Expressway project is yet to formally start but the deadline for the mega project is to expire in just over a month.

The government is committed to using the long-overdue National Household Database (NHD) from the next fiscal year to better target the social safety net programmes, in a development that can infuse dynamism in the flat scheme.

The government has ramped up its measures to contain the pressure on foreign currency reserves and inflation, drafting an action plan to discourage non-essential imports and bring relief to the poor and the vulnerable from the spiralling cost of living.

Black money holders appear to have lost the appetite to legalise their undisclosed wealth if the tax collected from this source in the first nine months of the fiscal year is any indication.

When thinking outside the box was needed, the government opted for the tried-and-tested method.

Wishy-washy -- is what best describes the government’s stance on scaling up its narrow revenue base, which is posing to become the Achilles’ heel to Bangladesh’s growth aspirations.

The country will have to import fertiliser at higher prices from the international market in the wake of the global price hike due to the Russia-Ukraine war.

Pragmatism was the order of the day when the finance division sat down to draft the development budget for fiscal 2021-22.