Dhaka, Jun 7 – A new national budget for the 2018-19 fiscal will be presented in Parliament on Thursday with a declared policy of expansionary outlays keeping the national elections likely by this year end in sight. The Finance Minister AMA Muhith is scheduled to start making the budget speech early in the afternoon.
This budget of the AL-led coalition’s second successive term in power will also be the 12th budget for Muhith, who presented two budgets under H.M. Ershad in the 1980s.
It will see him draw level with the late Saifur Rahman, whose twelve budgets were presented under Khaleda Zia, Ziaur Rahman and Abdus Sattar.
Although precise details remain undisclosed till Muhith’s budget speech in Parliament tomorrow, he has hinted that it will clock in more or less around the Tk 4.68 trillion-mark ($58 million)
Muhith himself has pointed at the need for an expansionary budgets for a country with such a large population as Bangladesh, irrespective of elections.
Talking to reporters on Monday, Muhith wished for higher revenue earnings, encouraged by the number of taxpayers having reached almost 3.3 million, with a large chunk of the newly registered ones being young people.
“I feel very good after 10 years,” Muhith said, adding that when he started people were unwilling to pay taxes due to harassment. “I don’t think it exists anymore in the country.”
Ten years ago the number of taxpayers in Bangladesh hardly crossed 1 million. The trebling of this number can be related to his expansionary fiscal policies has not relied on foreign aid, but rather on the National Board of Revenue, by cutting down on tax dodging or bringing more people under the tax net.
The revenue collection target for the coming fiscal year is likely to be fixed at Tk 3.40 trillions, up 18 percent from the Tk 2.87 trillions set for the outgoing fiscal.
Finance Ministry officials said the revenue target will be fixed in such a way so that the budget deficit remains within 5 percent.
Muhith is expected to unveil an annual development programme (ADP) in the region of Tk 1.78trillions.
The first three budgets that Muhith announced since the AL’s return to power in 2009 amounted to Tk 114,000 crore, Tk 132,000 crore and Tk 160,000 crore.
Muhith is likely to work with a GDP growth target of 7.8 percent, officials have said on numerous occasions.
There might be an announcement to bring more people under social safety net programme, officials said.
There is an indication that there will be another announcement for freedom fighters on enhancing their benefits.
Encouraged by the increase in the number of income taxpayers, Muhith has been sounding out an idea to bring down corporate tax rate for companies.
The government is also taking steps to form a banking commission to try and turn around the scandalously scam-hit finance sector.
