Finance Minister Abul Maal Abdul Muhith Sunday came down heavily on the state-owned regulatory authorities that do not deposit their earnings to government exchequer.
"It is highly unethical, absolutely against the financial discipline. If the allegation is found true, punishment will be meted out to organisations and individuals concerned," said the finance minister replying to a query from an economist at a pre-budget discussion at the NEC Auditorium in city's Sher-e-Bangla Nagar.
The minister was exchanging views with economists and representatives from various research organisations and think tanks at the NEC Auditorium on the first day (Sunday) to share their thoughts on next year's budget.
"Once they are punished, none would dare do it in the future," said the minister, adding that persons responsible for the misdeed should be jailed.
Replying to another question on higher yield rates on savings certificates, the finance minister admitted that the government had earlier thought of reviewing the situation but failed to do it.
"Now we are reviewing the situation. The yield rates on saving instruments must be brought down considering the prevailing situation," said the minister.
Participants at the meeting said sales of savings certificates have soared mainly due to higher rates of return, forcing the government to spend more on this account.
Earlier, in his welcome address the minister pointed out that the size of next year's (2015-16) fiscal budget would be about at Tk 3.00 trillion, but the government would not be able to attain the GDP (Gross Domestic Product) growth target.
"Until December last I was hopeful of achieving the GDP target (set for the current fiscal). But we would not be able to achieve the target because of the political violence during the last three months, said the minister.
Asked about the key areas of focus in the next budget, Muhith said, "The budget will focus mainly on development of manpower. We will focus more on human resource development, education, health and sanitation," said the minister.
Finance minister also pointed out that there will be no provision of whitening black money in the upcoming budget for fiscal 2015-16. 'Like the previous fiscal, there'll be no scope in the next budget to whiten black money,' he told the pre-budget discussion in response to a query from the audience.
A good number of economists and representatives from private think tanks including the Policy Research Institute of Bangladesh (PRI), Economic Research Group (ERG), Bangladesh Institute of Development Studies (BIDS) and Bangladesh Economic Association (BEA) attended the discussion meeting.
Despite various obstacles, PRI Executive Director Dr. Ahsan H. Mansur said, Bangladesh still maintains its macro-economic stability and to retain the stability the country needs be more investment and FDI friendly. To attain 8.0 per cent growth the country needs at least 34 per cent investment, he said. Despite rise of revenue, the tax/GDP ratio still remains at 10, one of the lowest in the world, which he said, should be increased.
He also urged the government to take steps to reduce the bank interest rate, spread between deposit and lending rates. Finance minister also agreed that spread, deposit and lending rates are very high but said that those are fixed by the board and directors of the banks.
Criticisiing the banks for unethical practices, BEA president Prof Dr Ashraf Uddin Chowdhury said that 4.0 per cent of borrowers are now controlling about 96 per cent of loans. "The big borrowers are getting more benefits than the small borrowers, who badly need financial assistance," said the professor. He highlighted the urgency for privatisation of all state-owned banks except Sonali.
BIDS Research Director Binayak Sen also suggested the government to privatise all loss making state-owned enterprises. To reduce the extreme poverty level he also stressed the need for introducing some special programme along with strengthening of food safety measures.
Dr. Zaidi Sattar, Chairman, PRI, said the country's economy needed a big push to help it come out from the 6.0 per cent annual growth trap and enter a higher growth trajectory.
To attain this, he said, more attention should be given to infrastructure development and integration of the trade policy. Besides RMG, more focus should be given on development of non-RMG products, added.
BIDS Senior Fellow Dr. Naznin Ahmed also requested the government for allocation of more cash incentives for the non-RMG sector like Teri towel, furniture and Pharmaceuticals. "If necessary cash incentives may be diverted from the RMG sector for distribution among these sectors," she added.
For healthy development of the country's capital market, Dhaka University professor Dr. Helela Uddin urged the government to reduce the supply of shares and securities in the stock market right now considering the present day situation.
The meeting was also addressed among others by BIDS former Director General Quazi Shahabuddin, ERG Executive Director Dr. Sajjad Zohir, Dr. SK Morshed and Dr. Md. Mamun.
mzrbd@yahoo.com
Muhith promises to be tough on errant regulatory bodies
FE Report | Published: April 06, 2015 00:00:00 | Updated: November 30, 2026 06:01:00
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