Anyone trying to obstruct the government-adopted deregulation agenda would face tough action as the new administration is bent on simplifying business regulations and improving the investment climate, says the finance minister.
"If anybody obstructs the deregulation process, he or she will be shown the door," Finance and Planning Minister Amir Khosru Mahmud Chowdhury told his audience at a budget dialogue organised Sunday by the Centre for Policy Dialogue (CPD) at a Dhaka hotel.
Delivering an extended address focused on regulatory reforms, meant for unblocking business and investment, he argued that the country had become "overregulated", creating unnecessary barriers to businesses and citizens.
"The government has been elected with commitments to the people. We intend to fulfill those commitments," he says in clear terms.
Mr. Khosru announces the formation of a taskforce to oversee the implementation of budget measures aimed at simplifying rules and regulations.
A dedicated online platform is also being developed to allow businesses and citizens to report instances where bureaucratic obstacles or regulatory harassment persist despite the government's reform initiatives.
"If any citizen or businessman feels that they are being hindered because of the violation or improper implementation of these reforms, they will be able to report it through the website," Mr. Khosru says about the government's vow.
The minister acknowledges that the proposed budget remained a work in progress and says the government is reviewing feedback from stakeholders.
"We are reviewing the budget. I am not claiming that this is a perfect budget," he says, adding that adjustments would be made to make it more business-friendly and responsive to public concerns.
Mr. Khosru feels that it could take at least two years to restore the economy to a fully stable footing following years of accumulated challenges.
"We expect to reach a turnaround point in the third year and subsequently move towards sustained prosperity."
Addressing concerns over energy shortages, the minister describes gas and electricity supply as among the country's most pressing economic constraints.
"I cannot solve these problems in three months. Even with money, everything cannot be fixed immediately," he says.
He criticises the previous administration for failing to pursue sufficient gas exploration and says the current government has begun new initiatives.
However, the finance minister mentions that bringing additional gas supplies into the system would take time. "It will take at least 18 months to secure, store and distribute additional gas supplies."
Reaffirming the government's ambition to transform Bangladesh into a trillion-dollar economy, Mr. Khosru says reliable gas, electricity and robust internet connectivity are essential prerequisites for sustained growth.
"We are investing in all three areas."
The minister also announces the introduction of a digital dashboard from early July to strengthen monitoring of public development projects.
"Instead of quarterly reviews, every project will be monitored daily through a digital dashboard," he told the meet, adding that the system is designed to tackle long-standing delays and inefficiencies in project implementation.
On trade policy, the finance minister says the government had reduced customs duties and taxes on imported industrial raw materials and expanded export incentives beyond the readymade garments sector.
Under the revised framework, exporters across industries will be able to access bonded-warehouse facilities or import raw materials duty-free against bank guarantees.
The requirement to open letters of credit (LCs) for certain imports has also been eased.
Also, the government is exploring ways to raise the tax-to-GDP ratio by bringing more small retail businesses onto the tax net through a simplified minimum tax regime.
"You will not need to fill out complicated paperwork. Many small businesses are afraid of tax procedures and tax officials," he says.
Responding to criticism over the size of block allocations in the proposed budget, Mr. Khosru insists that the funds are intended solely for development purposes. "We have not kept block allocations for operating expenditure. Whatever has been allocated is for development work."
The minister says the government inherited around 1,300 ongoing projects, claiming that many had been designed without adequate economic justification.
He also defends the government's family card social-protection programme, saying that pilot projects had found a low rate of targeting errors and that further efforts were underway to improve beneficiary selection.
On public borrowing, the chancellor of exchequer reiterates concerns about the crowding-out effect of government financing on private-sector investment.
"The bank borrowing rates are too high and even many private-sector borrowers to survive. Under such rates, how to survive by relying on expensive bank borrowing," he wonders.
He mentions that debt servicing for the next fiscal year are estimated at around Tk 1.25 trillion, stressing the need for alternative cheap financing mechanisms and reforms in public finance management.
State Minister for Planning Jonayed Abdur Rahim Saki told the function that the government was examining why development projects frequently fail to meet implementation schedules and budget targets.
"A comprehensive action plan will be prepared within the next one to two months."
Akhtar Hossain, a Member of Parliament from the National Citizens Party (NCP), describes the proposed budget as "unrealistic" and excessively dependent on deficit financing and borrowing in the current economic environment.
He also calls for greater transparency in budget implementation and urges the government to provide regular public reporting on the utilisation of sectoral allocations.
Among other speakers, PPRC Executive Chairman Dr. Hossain Zillur Rahman says rising household indebtedness became a symptom of economic distress rather than investment.
"Low-income households are cutting food consumption, postponing healthcare and taking on multiple jobs. New challenges, including mental health concerns, are emerging."
Dr. Rahman has identified three major weaknesses in the government's economic strategy: an employment crisis, an investment crisis and deterioration in the quality of education.
RAPID Chairman Dr MA Razzaque presents his organisation's estimates that suggest that the wealthiest 1.0 per cent of the population controlled nearly half of the country's total wealth.
Economist Professor Barkat-e-Khuda argues that structural reforms are essential for achieving the objectives outlined in the budget and cautions that the proposed revenue target appeared overly ambitious.
Montu Ghosh, president of the Garment Workers Trade Union Centre, urges the government to strengthen social-protection measures, including the provision of rationing support for workers.
Executive Director of the CPD Dr. Fahmida Khatun presented the keynote paper at the event, which was chaired by CPD distinguished fellow Dr. Mostafizur Rahman.
Other participants included representatives from business organisations and associations. Among them were Grameen Phone CEO Mr. Yasir Azman and BGMEA Senior vice-president Mr. Inamul Haq Khan.
jasimharoon@yahoo.com
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