Proposed budget found wanting: IBFB

The  proposed budget for the next fiscal year does not properly address how  the government will face challenges in inflation and the energy sector,  according to the International Business Forum of Bangladesh (IBFB).

"There  is no designed roadmap for fighting inflation and energy management  [gas and electricity prices] even though the government addressed these  in its budgetary speech," said IBFB President Humayun Rashid while  sharing his budget reaction at the Dhaka Reporters Unity in the capital  yesterday.

Although the government identified the Russia-Ukraine  war and Covid-19 pandemic as major challenges, it designed the budgetary  allocation to simply keep the almost stagnant economy active, he added.

The  finance minister highlighted six future challenges of the economy and  showcased four strategies to handle them, but no roadmap was shown on  how the first two strategies would be implemented.

"The huge size  of the proposed operating expenditure does not do justice to the  government's goal of cutting public spending," Rashid said. He  also termed the budgetary allocations as traditional income expenditure  as there is a lack of adequate suggestions to build skilled manpower.

The  research and advocacy based non-profit and non-partisan nationwide  business forum called upon the authorities concerned to take necessary  measures for reviewing the budget on a quarterly basis so that it can be  properly implemented.

A high-powered advisory committee involving  the private sector could be set up to review and monitor the  implementation of the annual development programme as well.

The IBFB also criticised the government's move to give amnesty for those who launder money. The  organisation said regular taxpayers will feel discouraged if there  remains an option to whiten black money by simply paying 7 per cent tax.

"It  will be unjustified if the government now gives unquestioned amnesty to  black money holders despite taking a tough stance on corruption."

The  money whitening scope will damage the country's moral balance while  donor and multilateral agencies will raise objections to the move. However, the IBFB welcomed the proposal of giving equal tax benefits to all industries.

The  organisation lauded the initiative to continue the rebate duty rate as  before on imports of agricultural machinery and parts, and to resume the  import duty at 25 per cent and regulatory duty at 25 per cent on rice  to ensure fair prices for paddy.

Muhammad Abdul Mazid, former  chairman of the National Board of Revenue (NBR), suggested strengthening  the revenue authority as an institution and extend its coverage across  the country to achieve the highest revenue collection.

"The target  of the lofty revenue collection is not a matter for worry as it will be  attainable when the NBR is stronger."