budget
Poor, jobless people largely ignored in budget: BNP
BNP senior leader Nazrul Islam Khan on Sunday alleged that the government largely ignored the poor and unemployed people amid the pandemic by not giving necessary allocation and announcing incentive packages for them in the proposed budget for the next fiscal year.
“The government has reduced the corporate tax in the proposed budget from which only 20 leading profitable companies will get the benefit of Tk 146 crore. Other companies will also enjoy the same benefit,” he said.
Speaking at a discussion, the BNP leader said, “But there’s no allocation and incentive package for lakhs of people who became unemployed and poor due to the coronavirus. Many industries and business institutions in the informal sector have been shut down. But there’s nothing for them in the budget.”
He said many hawkers, and workers of transport, launch, rickshaw-pullers, day-lobourers and hotel workers have become jobless while 2.5 crore people turned poor newly. “But the government has not given any incentive for them.”
Jatiyatabadi Sramik Dal arranged the programme at the Jatiya Press Club, marking BNP founder Ziaur Rahman’s 40th death anniversary.
READ: Budget fails to reflect people’s aspirations: BNP
Nazrul, a BNP standing committee members, demanded the government announce a monthly allowance for the working people who have become unemployed due to the Covid outbreak.
“It’s high time to introduce allowances for the unemployed people. We must protect them and provide them food at a fair price or under a rationing system. There’re now lakhs of both educated and uneducated jobless people in the country. We’ve to let them live with dignity,” he added.
The BNP leader recalled the contributions of Ziaur Rahman to the country’s Liberation War and its development and urged the party leaders and activists to take a lesson from his life.
READ: Budget only to widen debt burden: BNP
He also called upon them to get united to restore democracy and people’s lost rights through a movement.
BGMEA wants continuation of 0.5 per cent source tax
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on Saturday demanded that the government continue the existing 0.5 per cent source tax for the next five years in the new budget.
“We demand the continuation of the existing rate of 0.5 per cent source tax as it is suitable for long-term business planning,” said BGMEA President Faruque Hassan.
Also read: It’s a very significant budget: BGMEA
The budget for 2021-22 fiscal did not include the proposals made to the authorities for the benefit of the RMG sector, he said at press conference at its headquarters in Uttara.
The BGMEA president welcomed the proposal to reduce import duty on some machine parts and chemicals used in the garment sector.
Also read: New budget unveiled with focus on protecting lives and livelihoods
Allocation in budget for agriculture 'enough' for Dr Razzaque
Agriculture Minister Dr Abdur Razzaque on Friday said enough allocation was given for the agriculture sector in the proposed national budget of 2021-22 fiscal year.
“I feel no deficit in the allocation to operate our activities. We’ve been given enough allocation,” he said at a virtual post-budget press conference.
Finance Minister AHM Mustafa Kamal also addressed the press conference arranged a day after he placed the proposed budget in Parliament.
The Agriculture Minister said though the allocation for agriculture declined in terms of percentage, it did fall in amount. The amount of agriculture loans was Tk 14,000 crore to Tk 15,000 crore in the past, which has increased at some Tk 22,000 crore in the upcoming fiscal year during the corona-period. And the interest rate of the loans was lowered, he said.
He said the government had given the highest priority to agriculture also during its first tenure after assuming power in 2009.
Also read: New budget unveiled with focus on protecting lives and livelihoods
Abdur Razzaque said the agriculture production has significantly increased. “So, now the goals of the government are to sustain productivity and to boost production further,” he said.
Since Bangladesh attained self-sufficiency in food, now another goal of the government is to expedite agricultural mechanisation and commercialization of agricultural products through promoting food-processing industry in the country, he said.
“The production in all the agricultural sub-sectors went up. Now we’ll go for processing the agricultural products in mills and factories and then supply to local market and export to international market. Such measures have been taken in this budget,” said the Minister.
He said the Agriculture Ministry started implementation of a Tk 3000-crore project for agricultural mechanisation to reduce the production cost amid the high wages of agricultural workers as the farmer don’t make profit in many cases now.
In this budget, Tk 680 crore has been allocated for the project implementation in the upcoming fiscal year, he said.
Also read: New budget: Tracking prices going up and down
“The budgetary allocation for agriculture is good enough. There will be no problem with (this allocation),” he said.
If needed, there is an instruction of the Prime Minister to allocate more funds to agriculture from any other sector except health, said the Agriculture Minister.
Planning Minister MA Mannan, PM’s Economic Affair Dr Mashiur Rahman, Bangladesh Bank Governor Fazle Kabir, Senior Secretary of Finance Division Abdur Rouf Talukder, National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem, among others, spoke at the conference.
Businessmen given highest benefits with objective to create jobs: Finance Minister
Finance Minister AHM Mustafa Kamal has defended his tweaks to the law and budget items to provide businessmen the highest number of benefits in the proposed national budget for the fiscal year 2021-22, under an objective that they would reinvest in business, which would ultimately create more jobs.
He made the remarks while addressing a virtual post-budget press conference on Friday against the background of the Tk. 6,03,681 crore (Tk 6.03 trillion) budget placed Thursday in parliament, equivalent to 17.5 percent of GDP, for which in turn he set a target to achieve 7.2 percent growth in the 2021-22 fiscal.
In the budget, the overall deficit was outlined at Tk 2,14,681 crore, which is 6.2 percent of GDP. Kamal's plan is to meet it by mobilizing Tk. 101,228 crore from external sources, and Tk 113,453 crore from domestic sources. Two-thirds of the domestic financing, Tk. 76,452 crore, Kamal expects from the banking system, and the rest (Tk 37,001 crore) from savings certificates and other non-bank sources.
The revenue income was estimated to be at Tk 389,000 crore, which is 11.3 percent of GDP.
The Finance Minister said he placed the budget to keep the country’s economy on the trajectory of development and growth offsetting the fallout of Covid-19 as in the past.
Also read: New budget unveiled with focus on protecting lives and livelihoods
“This budget will create scopes for attracting new investment, generate new employment, protect the lives and livelihood of the marginalised people, and development. It is our firm belief,” he said.
He said more than 6.1 percent GDP growth is being attained in the outgoing fiscal year. "We’ll be able to attain 7.2 percent-plus GDP growth in the next fiscal year facing the corona situation,” he said.
Responding to a question as to what specific measures were taken to create employment since many people lost their jobs due to the pandemic, the Finance Minister said the top-most priority was given to the promotion of business in the national budget.
“The private sector has to be in the driving seat to generate employment. Government alone cannot create employment,” he said.
Agriculture Minister Abdur Razzak, Planning Minister Abdul Mannan, Bangladesh Bank Governor Fazle Kabir and Senior Secretary at Finance Division Abdur Rouf Talukder and National Board of Revenue (NBR) Chairman Abu Hena Md Rahmatul Muneem also spoke on the occasion.
Mustafa Kamal said many fiscal measures were taken in the budget to ease the business-related laws in order to promote business.
In many cases, taxes were lowered as the government’s main objective is not revenue collection, he said defending his position.
Also read: Allocation in budget for agriculture 'enough' for Dr Razzaque
He said works are going to determine the effect on the poorer sections by the Covid-19. “We have not received the complete data on the issue. Bangladesh Institute of Development Studies (BIDS) and Bangladesh Bureau of Statistics (BBS) have separately been working on the issue.”
The government will take measures after receiving the findings of their studies, he said.
About a question on black money whitening, the Finance Minister said it is "not yet decided" whether the scope will continue or not. That’s why the issue did not come in the budget speech.
He admitted there is a strong argument that the provision goes against equitable justice, although many people are in favor of its continuation. “But things will be clear within a month.”
In some of his strongest comments, he grew adamant to make the point that black money and undeclared money are not the same, as the latter is created due to flaws in the country’s economic system.
Defending the target of achieving 7.2 percent GDP growth, he said the economy has been performing better with huge growth of 39.4 percent in remittances and 13.69 percent growth in export business.
“So, like previous years, it will not be impossible to achieve this target,” he said.
Responding to a question on the country’s military budget, Finance Minister said this is an important sector, but it was not mentioned separately in the budget due to time constraints.
Finance Secretary Abdur Rauf informed that the military budget received an 8 percent higher allocation than the current fiscal year.
Budget fails to reflect people’s aspirations: BNP
BNP on Friday said people’s hopes and aspirations have not been reflected in the proposed national budget for fiscal year 2021-22 as the Finance Minister failed to adopt necessary plans and measures to protect their lives and livelihoods.
"We can simply say this budget could not reflect the hopes and aspirations of the people of Bangladesh, rather they have been deceived. ‘The finance minister has given the businessmen with both hands, but the common people have got nothing,” said party secretary general Mirza Fakhrul Islam Alamgir.
READ: Remove barriers to sending Khaleda abroad: BNP
Speaking at a press conference on the proposed budget at BNP chairperson’s Gulshan office, he also said no step has been taken in the budget for easing the sufferings of the poor and lower-income people. “BNP thinks that the proposed budget for the fiscal year 2021-22 has completely failed to adopt the plans to ensure people's lives and livelihoods during the pandemic.”
The BNP leader said the current government does not feel it necessary to make the common people and day- labourers happy since it has no accountability to them.
"There is no direction in the proposed budget to protect people from the Corona crisis. The finance minister has made the title of this year's budget ‘Bangladesh towards a Resilient Future Protecting Lives and Livelihoods. It sounds good, but there’s no specific proposal in the budget for cash support to save the livelihoods of the poor and day-labourers,” he observed.
Fakhrul said the small amount of money allocated in the name of expansion of the social security sector is very insufficient. “No announcement has been made to include the middle class in the social security sector, which has disappointed them.”
The BNP secretary general expressed his discontentment as necessary allocation was not given to help the unemployed and those returned from urban to rural areas, and to develop the human resources and education sector.”
He said the health sector has not been given adequate allocation to deal with the coronavirus pandemic and improves the services. “The allocation in the sector is within 1 percent of GDP. It's very sad. This allocation will not meet the demand of the health sector.”
READ: BNP's Aslam Chowdhury gets bail in two 2013 sabotage cases
The BNP leader said though the Finance Minister talked about vaccinating 25 lakh people every month, no specific roadmap in this regard has been announced.
Fakhrul said appropriate measures have not been taken to promote the SME sector which generates the highest number of employment opprtunies.
The BNP leader said nearly one-third amount of the total budget will be borrowed from home and abroad to fill the deficit. “Around TK 69,000 will have to be paid as interest on the loan in the next financial year. This budget will make the nation completely dependent on debt.”
Stating that corporate tax rates have been reduced, he said the Finance Minister has appeased the business community through the budget, but the middle-class people have got frustrated.
READ: AL destroyed liberal democratic politics: BNP
“Businessmen have benefited in many ways in the budget. But the budget did not give any concessions to the common people. Even, 2.45 crore new poor and the middle-class people have been ignored in the budget.”
Budget lacks clear outline to protect lives, livelihoods: CPD
he national budget proposed for the fiscal year 2021-22 lacks a clear outline to protect the lives and livelihoods and tackle the challenges caused by the coronavirus pandemic, said Centre for Policy Dialogue (CPD) on Friday.
“It has been said in the budget to move ahead by protecting the lives and livelihoods, but there’s no clear outline how it’ll happen through necessary reforms and enhancing institutional capacity,” said CPD Executive Director Fahmida Khatun.
Speaking at a press conference, she said, “Unlike last year, there has been clarity of thoughts about Covid management in the budget documents, but it has no similarity with the measures and allocations to tackle the challenges.”
CPD, a non-governmental research organisation, arranged the programme at a city hotel to share its observations on the Tk 6,03,680 crore national budget presented by Finance Minister AHM Mustafa Kamal in Parliament on Thursday.
Read: CPD finds much in budget out of touch with reality
Fahmida said they hoped that the health sector would get much allocation this time, but it did not happen. “The allocation for the sector is 0.95 percent of the GDP like last year. The total allocation has been increased to some extent, but there’s no increase in absolute terms.”
Stating that the Health Ministry’s performance is the poorest in implementing the ADP, she said there will be no benefit if the allocation for the sector is enhanced without improving the institutional competence of the sector through reforms.
Fahmida also said good governance and accountability must be ensured in the health sector by removing corruption and irregularities for improving its services and proper implementation of the budgetary allocation. “We didn’t see any step over the last one and a half years to strengthen the sector and establish good governance.”
Read:New budget unveiled with focus on protecting lives and livelihoods
She said the allocation for the social security sector is not sufficient though several thousand crores of taka have been increased. It remains at 3 percent of the GDP like the previous year. “But the amount is negligible compared to the number of poor people in the country.”
Besides, she said, a quarter of the total social security has been allocated for the pension of the government employees.
No Whitening of Black Money: TIB cautious in welcoming govt’s 'realisation'
Transparency International Bangladesh (TIB), the corruption watchdog, has cautiously welcomed the government's decision to discard the provision of whitening black money in the proposed budget for the next fiscal (2021-22).
Besides, the TIB is also drawing attention to the fact that this discriminatory and unconstitutional benefit should not be included in any other way out of respect to the honest taxpayers.
Also read: Provision for black money whitening to continue: Finance Minister
The TIB has expressed concern over the lack of a clear roadmap to ensure transparency and prevention of corruption in the overall budget implementation, not just the increase in allocations to critical sectors such as the health sector to control Covid.
TIB Executive Director Dr Iftekharuzzaman in a statement on Thursday night said despite strong objections and protests from all quarters, Finance Minister AHM Mustafa Kamal allowed whitening black money in the outgoing budget.
Also read: Black money: CPD for breaking vicious circle of illicit income
“The decision of the finance minister not to renew the whitening of black money in the proposed budget for the next fiscal year can be taken as a realization of the government," he said.
The TIB Executive Director said they want to believe that the authorities will not continue this unethical benefit under the pressure of vested interests again in future, while respecting the Prime Minister's dictum of 'zero tolerance against corruption'.
CPD finds much in budget out of touch with reality
The target of 7.2 percent GDP growth in the upcoming fiscal won’t be fulfilled as it is not realistic considering different economic indicators, according to an immediate reaction to the proposed budget for 2021-22 from the Centre for Policy Dialogue, a leading think-tank.
“We think that the 7 percent plus GDP growth will not be materialistic and fulfilled,” said CPD Executive Director Fahmida Khatun at a virtual press conference in the evening.
Noting that 6.1 percent GDP growth is being recorded in the outgoing fiscal year, she said, “We think there is a thin possibility to attain the higher growth than it (growth in outgoing fiscal), considering what we are seeing in other economic indexes. Rather it might be less ( than 6.1 percent).”
The CPD Executive Director said the targets for overall revenue collection, expenditures, investment and other things are not realistic either.
Also read: New budget unveiled with focus on protecting lives and livelihoods
“No significant change is not in the revenue collection. If we compare it with the revised budget, we see a discrepancy between the budget implementation rate in the 10 months and the proposed revenue target… The target for revenue collection would be raised by 30 percent, which is much higher,” she said.
Fahmida said some structural changes are seen in financing the budget. Resources would be mobilised from foreign sources to finance the budget, which is a welcoming matter and it has been done rightly. Because, the private sector may require loans from the country’s banks, though the private investment is not increasing yet, she added.
She said now Bangladesh is in a comfortable zone to repay loans as the debt-GDP ratio remains at a satisfactory stage, but Bangladesh needs to be careful so that the ratio does not spike.
The CPD executive director said it is not that budget that would have required to face the Covid-19 on the one hand and recover the economy on the other hand.
Also read: New budget: Tracking prices going up and down
The implementation of the Covid-period budget would be a challenge due to weak projections and limitations in implementation, she said.
“In this budget, there should have been clear indications for several years over health, education, social and employment sectors, expenditure structures in other sectors, and revenue collection,” she said.
Fahmida said no tax justice was seen in this budget as the tax-free income limit has been kept unchanged. If the limit would have been raised, low-income people would have disposable income in their hands, she added.
Budget 2021-22: Defence allocation up 8%
The allocation for defence in the budget for the FY2021-22 has been increased by Tk28.49 billion fromn the outgoing fiscal year.
Tk 376.91 billion has been proposed for the Defense Ministry and other services under the ministry in the national budget for the 2021-22 fiscal.
Also read: New budget unveiled with focus on protecting lives and livelihoods
An amount of Tk 348.42 billion was proposed for the Defense Ministry in the national budget for outgoing 2020-21 fiscal year.
Finance Minister AHM Mustafa Kamal made the announcement during the budget speech at the Jatiya Sangsad Bhaban on Thursday. He placed the proposed total budget of Tk 6,03,681 crore for 2021-22 - it was Tk 5,68,000 for the outgoing fiscal.
Also read: Budget: Govt allocates Tk 587 crore for cultural affairs, activists unhappy
Besides, Tk44 crore has been set aside as operating costs of the Armed Forces Division which was Tk41 crore in the 2020-21 budget.
Budget only to widen debt burden: BNP
BNP on Thursday described the proposed national budget for 2021-22 FY as anti-poor one and said people’s debt burden will get heavier if it is implemented.
The party also thinks the ruling party leaders and their relatives, not the marginalised poor people, will benefit from the new budget.
“In the 50 years of independence, Awami League government has given the country a budget with a deficit of more than one-third. To fill this gap, the government will take loans from domestic and foreign sources. This is how the government is imposing an additional burden of debt on people,” said BNP standing committee member Dr Abdul Moyeen Khan.
In an instant written reaction to the budget, he said the budget has been formulated with a 35.56 percent deficit which will be filled through taking loans from foreign or domestic sources.
Also read: New budget unveiled with focus on protecting lives and livelihoods
Dr Moyeen said their party tried in the past to take the country out of foreign-debt dependence. “On the other hand, the Awami League is repeatedly making the country's economy dependent on foreign loans due to their chaotic mega projects and mega corruption.”
He said every child in the country is getting into debt before birth due to formulation of such budgets repeatedly by the Awami League government.
“This year’s proposed budget has manifested that the government is imposing the burden of debt on the common people,” the BNP leader observed.
Another BNP standing committee member Amir Khosru Mahmud Chowdhury said the proposed budget is formulated without considering the interests and plights of marginal poor people in the country.
“The extreme poor, day-labourers and those who work in the informal sector, including rickshaw-pullers, those who push carts, those who sell food and beverage and tea sellers, have been badly affected by coronavirus. But there’s no incentive or cash transfer measures for them in the budget,” he said.
Also read: New budget: Tracking prices going up and down
Talking to reporters at his Banani residence, the BNP leader also said the budget has been formulated to appease the ruling party leaders and their relatives. “This budget will help make their bank balances bigger.”
He thinks the budgetary allocation for the health and education sectors are not enough at a time of a pandemic.
Khosru said it is now imperative to protect people’s lives and livelihoods instead of spending money on mega projects.
He said there should be an outline in the budget about how to protect the 5-6 crore people involved in the informal sector. “We must protect those who have lost jobs and are affected financially. Our party has earlier suggested allocating 7/8 percent of the GDP for giving them incentives. But we’ve seen that only 1/2 percent of GDP has been kept for them.”