Merger of dev, revenue budgets likely from FY '10-'11: Muhith

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FE Report
Finance Minister AMA Muhith has hinted at the possibility of unifying the government's development and revenue budgets from the fiscal year (FY) 2010-11.
"We want to bring together the development and revenue budgets… Hopefully it will be possible from the budget for the FY 2009-10," Mr Muhith said at a pre-budget meeting with editors and representatives of both print and electronic media at his ministry.
The reason behind the proposed merger is the result of significant rise in the government's revenue expenditures over the years.
He also informed the media personalities that the extent of the next budget will be bigger than that of current fiscal because of the rise in allocations for the government's social safety-net schemes and increased supports for local sectors.
During the meeting, editors and media representatives put forward some proposals including withdrawal of the exiting VAT (value added tax) from import of newsprints and ensuring payment of the government's advertisement bills as per the rates fixed by the last caretaker government.
Among the proposals on the budget for the fiscal year (FY) 2009-10, the Financial Express (FE) editor, Moazzem Hossain, laid emphasis on addressing the implementation-related problems to cope with the government's enhanced allocations, especially for infrastructure development and social safety-net programmes.
Responding to a query of the News Today editor, Reazuddin Ahmed, about the prospect of external resources, Mr Muhith said the availability of foreign assistance would be higher than expected despite the ongoing global economic recession.
The Independent editor, Mahbubul Alam, urged the government to withdraw the existing 15 per cent VAT from import of newsprints and provide necessary budgetary allocations for smooth payment of government advertisement bills at the recently-increased rates.
Towfiq Imroze Kalidy of bdnews24.com proposed reduction of the 'military budget' for the sake of raising the budgetary allocations for the country's healthcare sector.
The Daily Star editor, Mahfuz Anam, was critical of the prevailing mismatch between the budgetary allocations and their implementations.
"There has always been a go-fast tendency in spending hard-earned resources during the last three months of every fiscal year … It seems a silly exercise," he said.
Editor of the Daily Manabjamin Matiur Rahman Chowdhury proposed reduction of import duties on capital machinery by two-thirds for helping the local investors face the possible fallout of global meltdown.
He also suggested that the government should consider introducing a separate pay scale for the officials and employees of the National Board of Revenue (NBR).
The Jugantar Editor, Salma Islam, made a set of proposals including enhancement of subsidy for agriculture and meltdown-hit export sectors, re-imposition of ban on yarn import through Benapole land port.
In response to an observation made by the Daily Inqilab city editor, Zakaria Kajol, the finance minister said the government would consider protecting the interest of small savers against the backdrop of bank's current move to reduce interest rates both on deposit and lending.
Mr Muhith hinted at putting an end to the existing tax-holiday provision in the next budget following reports of abuse of the facility by some beneficiaries.
"I am against the tax-holiday facility. Instead, at least a nominal rate of 2.0 per cent of tax should be imposed," Mr Muhith said at the meeting.
The finance minister further said: "Beneficiaries of the tax-holiday facility often declare their ventures as loss-making at the end of such support regime."
He also expressed the government's willingness to discuss the issue with the stakeholders before taking a decision on discontinuation of the tax-holiday facility.
The government will take steps such as quick settlement of pensions for government officials and relaxation of rules and regulations on classified loans.
Besides, the government will give due attention to generation of electricity during its five-year tenure.
He also admitted that implementation of big power projects has been hampered because of the delay in their approval process, especially the dilemma suffered by the purchase committee.
Terming the availability of natural gas as one of the major problems, he said there was little progress in the gas supply over the last seven years.
When asked, Mr Muhith told the meeting that the government would expedite the process of adopting the national coal policy.
"We have to talk to the people of the Phulbari coalmine area about their rehabilitation arrangements while going for extraction of the coal," he said.
About the idea on legalising 'back money', the minister said nearly Tk 240 billion has so far been legalised, which is not a 'significant' amount at all.
He also said the submission of income-tax returns online would be made possible by the end of the next fiscal.
Besides, the government has plans to bring about the automation in the land registration process also, saying nearly 50 per cent of the land-related cases simply disappear.
Prime Minister's Finance and Planning Adviser Dr Moshiur Rahman, secretaries of Finance and Economic Relations Division (ERD), acting Chairman of the NBR, the daily Sangbad Editor Altamash Kabir and Channel I managing director Faridur Reza Sagar also addressed the meeting.