Finance Minister AHM Mustafa Kamal admits that the budget he has crafted may have to ride past a bumpy road amid a global crunch but resolves to face challenges and advance the economy onto the set growth trajectory.
Facing volleys of questions at a post-budget press briefing Friday, he also expressed the hope that the amnesty for tax-evaders holding assets outside the country would be successful and contribute to the national economy and help in job generation.
But the inflation as a result of foreign adversities cannot be controlled, the finance minister told the journalists and mentioned measures for managing internal factors for price rises.
"[The funds] will come back. Why not…?" he said at the press conference held at the city's Osmani Auditorium, where other ministers and high officials defended the budgetary and fiscal measures.
He said the common people have the right on the assets and the government is trying to bring that back.
The finance minister Thursday unveiled a budgetary scheme to give tax-dodgers a chance to come clean, as he sought to bring billions of dollars worth of undisclosed money into the mainstream economy although many believe that this is unethical when considered in relation to the genuine taxpayers.
He mentioned many techniques of capital flight and said such amnesty is available at least in 17 countries, including the USA, Canada, even the Scandinavian country Norway. He said money is even laundered on grounds of existing system.
The finance minister said the money laundered by PK Halder would be brought into the country and that India assured the government on the matter.
Replying to questions relating to the inflationary pressures on the economy, the finance minister pointed out that consumer-price inflation has surged by 30 per cent on the world market and it has some cascading impact on the Bangladesh market.
"We can control price surges on the domestic market through raising supply while the inflation caused by international prices surges cannot be controlled," he said.
The finance minister said mismatch between demand and supply should be addressed, adding that those who are involved in syndicate should be brought to justice.
He hopes the volatility on the local market will not remain. "[I'm saying it] from the past experiences."
Mr Kamal said the global market remained volatile and there will be many challenges looming once the market surges further.
He claims the budget is prepared for the marginalized people, as he was poor and has his empathy for those in lower rung of society. "I know what the pain of being poor is."
On a note of optimism, he said every challenge opens up many opportunities. "I believe in opportunity."
State Minister for Planning Dr Shamsul Alam said the budget is contractionary in a sense that it has dropped to 15.2 per cent of the GDP although it used to expand around 17 per cent of the GDP.
Finance Division Senior Secretary Abdur Rouf Talukder rules out that the higher bank borrowings will cause crowding-out effect on the economy.
He makes it clear that this borrowing estimation from the banking system has been made in line with the money-supply rate, adding that the money supply usually grows 14-15 per cent on average.
The money supply may be over Tk 2.0 trillion and the government borrowing from the system will not hit the private enterprises.
"In my belief, the banks will feel comfort as they will get chance for investing their idle money in the risk-free government bonds."
Replying a question on the rising inflation, Mr Talukder listed various subsidies and supportive measures to cushion to crunch.
The government is giving Tk 84 per kilogramme (kg) of urea as its procurement cost is Tk 100 a kg. He also said the budget has proposed to raise the subsidy for power, fertilizer and agriculture sectors as part of easing the pressure of inflation on the people.
The finance secretary said the rate on investment in government savings instruments remained higher than the market rate. The subsidy being given on the tools is consistent with the spirit of social safety-net programmes.
Mr Talukder mentioned that the government has finalized a draft on the universal pension scheme. "We do hope that the draft will be placed with the cabinet for its approval shortly."
He said the pension scheme may be introduced in the next fiscal year, beginning in July.
Replying a question on the targeted higher NBR resources for the next fiscal year, the Internal Resources Division Senior Secretary and Chairman of the National Board of Revenue Abu Hena Md. Rahmatul Muneem said: "We try to achieve the target."
"We do hope that we will reach a place near the target."
Agriculture Minister Dr Mohammad Abdur Razzaque, Education Minister Dr Dipu Moni, Health and Family Welfare Minister Zahid Maleque and Bangladesh Bank Governor Fazle Kabir, among others, attended the press briefing.
Pointing to the country's achievement of self-sufficiency in food, agriculture minister Dr Muhammad Abdur Razzaque rules out any possibility of a famine in Bangladesh.
"Even if [any] food doesn't come from abroad, there will be no famine [at home]. We're self-sufficient in food," he maintains.
He says Bangladeshi scientists have invented some high-yield paddy varieties that give a good harvest.
According to Mr Razzaque, poor people were earlier given rice at Tk 10 per kilogram, but the new budget proposes that rice price will go up to Tk 15.
Rice will be given to 5.0-million people, meaning that 25-million people will get food, he says.
The government attaches importance to nutrition intake of people like milk, egg, fish and meat, he cites. "We want to lower reliance on rice."
He said coarse rise price is still within Tk 46.
The minister claims that the prices of onion, potato and poultry are still very low.
Farmers are also in trouble for poor poultry price.
There is no food scarcity here, says Mr Razzaque, concluding that wheat import has gone down due to the ongoing Russia-Ukraine war, simply putting a pressure on rice.
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