The national budget for fulfilling people's expectations
Sunday, 20 June 2010
Ferdous Rahman
According to Benjamin Franklin, "Two things are fixed in human life - one is death and the other is tax." Though people are not having any control on death, but imposition of tax depends on the government. However, it is good to learn that without increasing the tax rate, it is proposed for expansion of the tax net in the proposed budget for fiscal 1010-11.
Finance Minister AMA Muhith presented a record 1.32 trillion taka budget for the FY of 2010-11 in parliament June 10, 2010. The country's first budget immediately after the independence for the FY of 1972-73, was just 7.8 billion taka. In the budget proposal, the revenue expenditure has been fixed at 936.7 billion taka and allocation for Annual Development Program (ADP) at 385 billion taka envisaging a 6.7 percent GDP growth.
The finance minister also gave a roadmap for achieving the growth. According to that, 8 percent growth will be achieved by 2014 and 10 percent by 2017. The macro-economy and social targets have been fixed based on the election manifesto of the ruling grand alliance. The use of IT was the main attraction for the first time in parliament while presenting the budget.
In the proposed budget, education and technology got the highest allocation. Special emphasis has been given on power and agriculture sectors. A proposal has been made for introduction of 'agriculture insurance' in order to compensate the small and mid level farmers for losses due to natural disasters. Again to ensure fair price, proposal has been made to establish nationwide marketing network involving the farmers themselves.
For increasing revenue from internal sources, it is proposed to make substantial reforms in revenue sector. An additional 15 billion taka is proposed to be collected through expansion of tax net. Various stimulus packages, including introduction of tax card, have also been proposed for regular taxpayers. The abolition of PSI system is obviously a courageous step.
Special emphasis has been put in infrastructure in the proposed budget. Provision of whitening the black money is only allowed in this sector. For the second time, another 30 billion taka has been allocated for PPP and proposal has also been given for establishing a separate office for receiving PPP project proposals.
In the budget, it has been proposed to create self-employment, increase manpower export and provide technical education to the poor people. It is appreciable to keep the individual investors of the capital market out of the tax net. But special attention is required so that progress of capital market is not hampered by bringing the institutional investors under tax net.
In the proposed budget, maximum emphasis has been put on electricity and power generation. It has also put emphasis on coal extraction and discovery of new gas fields and increase of gas supply. Allocation of 61.15 billion taka for power and mineral resources is commendable. It has also been proposed to fill up electricity deficit by 2012 and generate 11,000 MW by 2015. Short term, mid term and long term planning for power generation has also been mentioned by the finance minister in his budget speech. By providing year-wise statistics, he has assured to generate additional electricity of 9,500 MW by 2015. In addition proposal has been put for providing tax holiday for production of solar panels and energy saving bulbs.
Some 81.49 billion taka, which is 6 percent of total budget, has been allocated to health and family planning sector. Considering harmful for public health, it has been proposed to increase the tax and supplementary duty on cigarettes.
In order to ensure the supply of daily necessities, it has been proposed to strengthen the TCB. The existing zero tariff will continue for importing the daily necessities. Some 190 billion taka has been allocated for social safety net and 10 billion taka has also been set aside for creation of employment for 1.7 million hardcore poor people in 64 districts.
Proposal for allocation has been made for empowerment of women and children welfare. In order to minimise the discrimination and ensuring the partnership of women in development, for the first time a statement for gender budget has been published. Special fund has been proposed for the acid victims, rehabilitation of the disabled and self-employment of the women.
Special emphasis has been put on expansion of local industries. For the expansion of export, 20 billion taka has been proposed as stimulus package. Again those industries are exempted from tax deduction at source in case of importing raw materials and capital machineries.
The special allowance for the freedom fighters has been increased. Some 20 million taka has been allocated for the trial of the war criminals. Allocation in defense sector has also been increased.
Tax exemption has been proposed for CSR activities. Allocation has been proposed for the training of journalists.
The proposed budget is forward looking and will be able to contribute towards higher GDP growth. This is pro-people and dynamic budget and not at all over ambitious as economic development is essential for poverty reduction.
But the main challenge of the proposed budget will be its implementation. Development in the country will take place if ADP is properly implemented. The proposed budget aims to meet the demand and expectation of the general people. This is an investment friendly budget, which will help development and employment generation.
The government has to move forward with steps required for poverty reduction as proposed in the budget. Good governance need to be ensured with increased revenue collection and improved financial management.
The people will reap the benefit of the budget only if the government can fully implement the ADP.
After considering the allocation and importance given to power, mineral resources, infrastructure, safety net etc in the proposed budget it can be termed as a comprehensive, balanced and people welfare-oriented budget. Obviously the proposed budget will be considered as an important document in meeting the national demand and fulfilling the expectation of the people.
The writer is a Cordinator, Media for Development.
He can be reached at e-mail: ferdous.rahmaan@gmail.com
According to Benjamin Franklin, "Two things are fixed in human life - one is death and the other is tax." Though people are not having any control on death, but imposition of tax depends on the government. However, it is good to learn that without increasing the tax rate, it is proposed for expansion of the tax net in the proposed budget for fiscal 1010-11.
Finance Minister AMA Muhith presented a record 1.32 trillion taka budget for the FY of 2010-11 in parliament June 10, 2010. The country's first budget immediately after the independence for the FY of 1972-73, was just 7.8 billion taka. In the budget proposal, the revenue expenditure has been fixed at 936.7 billion taka and allocation for Annual Development Program (ADP) at 385 billion taka envisaging a 6.7 percent GDP growth.
The finance minister also gave a roadmap for achieving the growth. According to that, 8 percent growth will be achieved by 2014 and 10 percent by 2017. The macro-economy and social targets have been fixed based on the election manifesto of the ruling grand alliance. The use of IT was the main attraction for the first time in parliament while presenting the budget.
In the proposed budget, education and technology got the highest allocation. Special emphasis has been given on power and agriculture sectors. A proposal has been made for introduction of 'agriculture insurance' in order to compensate the small and mid level farmers for losses due to natural disasters. Again to ensure fair price, proposal has been made to establish nationwide marketing network involving the farmers themselves.
For increasing revenue from internal sources, it is proposed to make substantial reforms in revenue sector. An additional 15 billion taka is proposed to be collected through expansion of tax net. Various stimulus packages, including introduction of tax card, have also been proposed for regular taxpayers. The abolition of PSI system is obviously a courageous step.
Special emphasis has been put in infrastructure in the proposed budget. Provision of whitening the black money is only allowed in this sector. For the second time, another 30 billion taka has been allocated for PPP and proposal has also been given for establishing a separate office for receiving PPP project proposals.
In the budget, it has been proposed to create self-employment, increase manpower export and provide technical education to the poor people. It is appreciable to keep the individual investors of the capital market out of the tax net. But special attention is required so that progress of capital market is not hampered by bringing the institutional investors under tax net.
In the proposed budget, maximum emphasis has been put on electricity and power generation. It has also put emphasis on coal extraction and discovery of new gas fields and increase of gas supply. Allocation of 61.15 billion taka for power and mineral resources is commendable. It has also been proposed to fill up electricity deficit by 2012 and generate 11,000 MW by 2015. Short term, mid term and long term planning for power generation has also been mentioned by the finance minister in his budget speech. By providing year-wise statistics, he has assured to generate additional electricity of 9,500 MW by 2015. In addition proposal has been put for providing tax holiday for production of solar panels and energy saving bulbs.
Some 81.49 billion taka, which is 6 percent of total budget, has been allocated to health and family planning sector. Considering harmful for public health, it has been proposed to increase the tax and supplementary duty on cigarettes.
In order to ensure the supply of daily necessities, it has been proposed to strengthen the TCB. The existing zero tariff will continue for importing the daily necessities. Some 190 billion taka has been allocated for social safety net and 10 billion taka has also been set aside for creation of employment for 1.7 million hardcore poor people in 64 districts.
Proposal for allocation has been made for empowerment of women and children welfare. In order to minimise the discrimination and ensuring the partnership of women in development, for the first time a statement for gender budget has been published. Special fund has been proposed for the acid victims, rehabilitation of the disabled and self-employment of the women.
Special emphasis has been put on expansion of local industries. For the expansion of export, 20 billion taka has been proposed as stimulus package. Again those industries are exempted from tax deduction at source in case of importing raw materials and capital machineries.
The special allowance for the freedom fighters has been increased. Some 20 million taka has been allocated for the trial of the war criminals. Allocation in defense sector has also been increased.
Tax exemption has been proposed for CSR activities. Allocation has been proposed for the training of journalists.
The proposed budget is forward looking and will be able to contribute towards higher GDP growth. This is pro-people and dynamic budget and not at all over ambitious as economic development is essential for poverty reduction.
But the main challenge of the proposed budget will be its implementation. Development in the country will take place if ADP is properly implemented. The proposed budget aims to meet the demand and expectation of the general people. This is an investment friendly budget, which will help development and employment generation.
The government has to move forward with steps required for poverty reduction as proposed in the budget. Good governance need to be ensured with increased revenue collection and improved financial management.
The people will reap the benefit of the budget only if the government can fully implement the ADP.
After considering the allocation and importance given to power, mineral resources, infrastructure, safety net etc in the proposed budget it can be termed as a comprehensive, balanced and people welfare-oriented budget. Obviously the proposed budget will be considered as an important document in meeting the national demand and fulfilling the expectation of the people.
The writer is a Cordinator, Media for Development.
He can be reached at e-mail: ferdous.rahmaan@gmail.com