A day after placing the national budget for the fiscal year (FY) 2015-16 in parliament, Finance Minister AMA Muhith admitted that the revenue- mobilisation target for funding it was 'too high' on the back of poor tax base.
But, the revenue board hopes to get to the lofty goal in the end -- though it failed to do so in the outgoing fiscal year.
The finance minister Thursday proposed 30 per cent increase in the NBR revenue mobilisation in the next FY, while placing a Tk 2.95- trillion national budget.
But he said: "We never crossed 23 per cent up of the revenue earnings."
"(Actually) we need a 'big push' on it (NBR)," Mr Muhith said at a post-budget press briefing Friday.
However, the finance minister maintained that Bangladesh's capacity in budget implementation has been going up and he believed that the next one would also be implemented accordingly.
Bangladesh previously used to implement budget between 79.0 and 90.0 per cent, he said, adding that in last five years the average rate of implementation had been 95 per cent.
Mr Muhith expressed the hope that the execution of the budget would eventually stand at 96 per cent in the outgoing fiscal year.
The finance minister said the country's economic activities are dominating over political programmes.
Admitting political instability in the country, which is seen as a damper on economic advances, Mr Muhith said: "I believe that devastating political programmes will not be observed in the coming days."
As regards Bangladesh's status to be a middle-income country, Mr Muhith said Dhaka would apply to the United Nations to raise its status from the least-developed country to a middle-income one in 2018.
"The UN and the World Bank need three years' observations to confirm a country with middle-country status. So we hopefully expect that Bangladesh will get middle-income-country status in 2021."
The finance minister said six special economic zones will be built this year.
He said 15 more special economic zones will be built in next 15 years.
Replying to a volley of questions, Mr Muhith said the proposal for uniform minimum income tax of Tk 4000 will be reviewed.
"We're expecting that the rate will be reviewed in the cabinet," the finance minister said.
He hinted that one rate will be for the people living in big cities and another for the rural areas.
The finance division organised the traditional briefing at the city's Osmani Auditorium for a resume on the budgetary measures and explanation on queries and reactions.
Industries Minister Amir Hossain Amu, Agriculture Minister Motia Chowdhury, Planning Minister AHM Mostafa Kamal and Information Minister Hasanul Hoque Inu were present at the media meet.
Senior secretary at the finance division Mahbub Ahmed, senior secretary of the economic relations division Mejbahuddin Ahmed, Bangladesh Bank Governor Dr Atiur Rahman and National Board of Revenue (NBR) chairman Md Nojibur Rahman were also present.
Replying to a question about poor investment, Industries Minister Amir Hossain Amu said there are adequate investment proposals being made each day.
"Actually, from outside, that scenario (investment) cannot be realised." Mr Amu said BSCIC (Bangladesh Small and Cottage Industries Corporation) plots now being expanded amid demand from investors.
Replying to a question on low agricultural subsidy, Agriculture Minister Motia Chowdhury said the government has done much for the farmers and agriculture.
"The government has re-imposed duty on rice import for the sake of the farmers," she told reporters.
Replying to a question from the journalists, the central bank governor said the borrowing from the banking system would not affect Bangladesh's existing liquidity situation and thus not affect private investment in terms of getting loans by the private firms.
"Look at the call-money rates, you will realise the situation of liquidity," Dr Atiur told the press meet. He also said local corporate houses can avail of overseas loans as well.
About revenue mobilisation, NBR Chairman Md Nojibur Rahman claimed that the NBR's capacity had strengthened in recent times.
"We are confident that we can even collect Tk 2.0 trillion. And in comparison with Tk 2.0 trillion, the Tk 1.76-trillion target for the next fiscal year is much low."
The NBR chairman assured that the businesses need not get panicked as whatever they are doing, doing in consultation with the businesspeople.
jasimharoon@yahoo.com
End: Jasim Haroon/MUA