It is a regular practice of any democratic government to present budget before parliament after threadbare discussion in parliament budget is passed with or without major or minor amendments. Following this tradition proposed budget of next financial year (2019-20) has been placed by finance minister.
Volume of budget is increasing every year leading to Tk. 5,23,190 crore in this year including deficit of Tk. 1,43,380 crore. Estimated total revenue earning is Tk 3,77,810 crore out of which NBR will have to collect Tk. 3,25,600 crore. To meet deficit loan will be taken Tk 27,000 crore from sale of savings certificate, Tk. 47,364 crore from banking sector and Tk. 63,848 crore from abroad. Experts have raised question that if government takes such huge amount of loan from banks particularly when banks are suffering from acute liquidity crisis, then what how private entrepreneurs will be financed?
In a round table conference The Finance Minister said that no extra burden of tax will not be imposed but those who are out of tax net they will be brought into tax net. He has declared that 1 crore (30 to 40 lakhs in Dhaka city and balance across the country) new taxpayers would be found out in one year.
For the purpose of fulfilling target of revenue collection in proposed budget VAT will be taken as the main source. Analysts say that tax will be collected from every consumer item, essentials, service and entertainment in the name of VAT from 1st July, 2019. Even Matia Chowdhury, MP has raised question that Family Sanchaypatra is a scheme of hoourable prime minister but why income tax 5 per cent more, in addition to existing 5 per cent, will be deducted from its interest?
Economists think that there are problems in implementing such a huge budget. Even Mr. Muhit , former finance minister, has expressed the same view because people do not want to pay tax Chairman, NBR also told that people change mobile phones frequently but they are not interested to pay tax Tk. 5,000/- in a year .
Banking is a huge sector but experts say that main problems of banks are liquidity crisis and default loan though no definite measure has been mentioned to recover and reduce default loan.
Start up fund of Tk 100 crore for young entrepreneurs, proposal for resuming inclusion of private educational institutions into MPO, initiative to introduce universal pension, 5 per cent cash incentive for readymade garments, health and crop insurance, 2 per cent incentive for transfer of foreign remittance through legal channel--these proposals are hailed by all.
As usual, leftist parties have criticized that this budget will make the rich richer and the poor poorer. Indeed it is a budget for the rich, it is not congruent with election manifesto of the ruling party etc. May be it is their traditional reaction but reality of present Bangladesh is not different from it. Number of Nouveau riche persons are gradually increasing.
As proposed by honourable finance minister, no question regarding source of investment will be raised by income tax department if tax at 10% is paid on investment towards purchase cost of flat/apartment or construction of building and industrial undertakings in high tech park and economic zones. This is a very effective initiative to generate employment but there is question also.
Except income tax department there are other agencies of the government who can raise question. Honourable prime minister has explained that with a view to prevent money trafficking this provision has been made. Good idea but experts have raised another important point that without giving opportunity to invest black money government should take initiative to close the ways of creating black money and traffickers will never be interested to invest in industries.
It is beyond question that farmers, garment workers, semi skilled and unskilled labourers working abroad are the main driving forces of our economy but farmers don not get proper price of paddy. Even they cannot recover cost of production. Government provides subsidy for seed, fertiliser, pesticide and agricultural equipments but farmers do not get benefit of it. Every year pre budget discussion is held with different trade organisations but farmers are never consulted. Even it is alleged that politicians, members of parliament and other public representatives are not included in budget preparation, Question naturally comes--who will speak for common people? How political vision of the government will be reflected if politicians are not involved in the procedure of budge preparation?
Per capita income has been estimated 2,173 US dollar in proposed budget but critics say that per capita income never reflects reality. It is a capitalist bluff which is an arithmetical average of two or more persons. It includes income of a day labourer who earns maximum Tk. 500/- a day (that is also not regular) and income of a rich businessman or high official who earns Tk. 25,000/- (this is a most conservative figure) or more daily (this income is regular),
Some economists say that more than 99.99 per cent of people are never interested in budget. They don't know what is GDP or per capita income, what is surplus or deficit. What is the use of the statistics to a farmer or a rickshaw puller? They also say that without inflating budget with deficit, volume of budget could easily be Tk. 3,79,810 crore.
Regarding employment honourable prime minister has said that it is not possible to provide job for 16 crore people but government will establish 100 economic zones where adequate opportunity for employment will be created. Honourable Prime Minister must be thanked for this speculation but establishment of 100 economic zones is remote task.
However, let us be hopeful that in spite of so many obstacles and challenges, journey towards a prosperous (as claimed in budget proposal) will reach a successful end.
