Budget implementation to be biggest challenge: Muhith
Saturday, 13 June 2009
FE Report
Finance Minister AMA Muhith said Friday the government has kept the provision of legalising undisclosed money in the new budget given the "political reality".
The finance minister also said he will be facing the "biggest challenge" when he moves to implement the Tk 1.13 trillion budget.
"Politics is an art of compromise," he told a post-budget press conference in the city.
"It was not an individual decision. It was a combined decision. Politics has to deal with all kinds of people, interests," he said.
His comments came a day after he unveiled the national budget for the 2010 fiscal year.
The budget has proposed to allow disclosure of undisclosed money by paying 10 per cent tax if invested in infrastructure, specific industrial sectors, share markets and real estate.
The budgetary measure has given undeclared money holders an opportunity to disclose their income after paying a fixed amount of tax for purchase of flat.
The opportunity is being reserved for three sectors for three years till 2012.
The finance minister, however, once again said he was not supportive of such a provision.
"Morally, I don't support whitening of black money. Nor does the prime minister. But it had to be accommodated," he said.
Mr Muhith, also a former top bureaucrat, noted that he would start overseeing the budget implementation from the next month.
"It's very easy to collect money, but the difficult thing is to spend it," he said.
He said the government would not only involve ministries, rather it would engage lawmakers, local government bodies, and the opposition in the budgetary implementation process.
"We need to strengthen the people's participation as well," he said.
The finance head said he would replicate the experience of South Korea about how it established the system of efficiently executing budget.
"I want to make the budget planning department stronger," he said.
He said the budget has projected to hike collection from direct taxes by 22 per cent, a target Mr Muhith said is "doable." "Those who run cars, own public limited companies must have to pay taxes," he said.
Referring to the tax holiday system, the minister said his government would discontinue it if the industrialists failed to significantly add new jobs in the coming years.
"We will see how many jobs they create within 2012."
Mr Muhith said his government would fight corruption, but acknowledged it was not a "simple task."
"Corruption could not be eliminated even during the emergency. It's a social malady," he added.
Turning to the public-private partnership (PPP), the minister said it would be expanded not only to infrastructure, but also to waste recycling, agriculture and health care services.
Dr Mashiur Rahman said private investors could participate in the PPP projects as equity partners as it would provide "guaranteed returns."
He said the government would try to divert a substantial amount of remittances to the PPP investments.
"It can be done. I think, investors will come to sectors where services charges can be imposed," he added.
Among others, Agriculture Minister Motia Chowdhury, Planning Minister AK Khondker, Information Minister Abul Kalam Azad, Health Minister Ruhul Huq, Communications Minister Syed Abul Hossain, and Economic Adviser to the Prime Minister Dr Mashirur Rahman spoke at the press conference.
Bangladesh Bank Governor Dr Atiur Rahman was also present.
Finance Minister AMA Muhith said Friday the government has kept the provision of legalising undisclosed money in the new budget given the "political reality".
The finance minister also said he will be facing the "biggest challenge" when he moves to implement the Tk 1.13 trillion budget.
"Politics is an art of compromise," he told a post-budget press conference in the city.
"It was not an individual decision. It was a combined decision. Politics has to deal with all kinds of people, interests," he said.
His comments came a day after he unveiled the national budget for the 2010 fiscal year.
The budget has proposed to allow disclosure of undisclosed money by paying 10 per cent tax if invested in infrastructure, specific industrial sectors, share markets and real estate.
The budgetary measure has given undeclared money holders an opportunity to disclose their income after paying a fixed amount of tax for purchase of flat.
The opportunity is being reserved for three sectors for three years till 2012.
The finance minister, however, once again said he was not supportive of such a provision.
"Morally, I don't support whitening of black money. Nor does the prime minister. But it had to be accommodated," he said.
Mr Muhith, also a former top bureaucrat, noted that he would start overseeing the budget implementation from the next month.
"It's very easy to collect money, but the difficult thing is to spend it," he said.
He said the government would not only involve ministries, rather it would engage lawmakers, local government bodies, and the opposition in the budgetary implementation process.
"We need to strengthen the people's participation as well," he said.
The finance head said he would replicate the experience of South Korea about how it established the system of efficiently executing budget.
"I want to make the budget planning department stronger," he said.
He said the budget has projected to hike collection from direct taxes by 22 per cent, a target Mr Muhith said is "doable." "Those who run cars, own public limited companies must have to pay taxes," he said.
Referring to the tax holiday system, the minister said his government would discontinue it if the industrialists failed to significantly add new jobs in the coming years.
"We will see how many jobs they create within 2012."
Mr Muhith said his government would fight corruption, but acknowledged it was not a "simple task."
"Corruption could not be eliminated even during the emergency. It's a social malady," he added.
Turning to the public-private partnership (PPP), the minister said it would be expanded not only to infrastructure, but also to waste recycling, agriculture and health care services.
Dr Mashiur Rahman said private investors could participate in the PPP projects as equity partners as it would provide "guaranteed returns."
He said the government would try to divert a substantial amount of remittances to the PPP investments.
"It can be done. I think, investors will come to sectors where services charges can be imposed," he added.
Among others, Agriculture Minister Motia Chowdhury, Planning Minister AK Khondker, Information Minister Abul Kalam Azad, Health Minister Ruhul Huq, Communications Minister Syed Abul Hossain, and Economic Adviser to the Prime Minister Dr Mashirur Rahman spoke at the press conference.
Bangladesh Bank Governor Dr Atiur Rahman was also present.