Bangladesh’s top trade body has lauded the proposed national budget for 2019-20 fiscal as ‘pro-people’ and ‘business-friendly’ but called the government to cut dependency on bank borrowings to offset the deficit.
In its formal reaction on Saturday (Jun 15), two days after Finance Minister AHM Mustafa Kamal unveiled a Tk 5.23 trillion expenditure for the next fiscal, the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) said that the budget will help expedite economic development.
Describing the budget as a welfare-oriented one, FBCCI President Sheikh Fazle Fahim said, "Instead of relying on bank borrowing, the government should utilise remittances, infrastructure funds, bonds, and other sources for the deficit".
In his maiden budget, Finance Minister AHM Mustafa Kamal has proposed an expenditure of Tk 5.23 trillion and set out a revenue target of Tk 3.77 trillion.
The overall budget deficit stands at Tk 1.45 trillion, which stands at 5 percent of the gross domestic product (GDP).
The budget proposes to borrow Tk 473.64 billion from the banking system among other domestic sources to bridge the deficit.
The proposed budget has many positive things, according to FBCCI President Fahim.
“Emphasis on social safety net, research and development, innovation, ICT, infrastructure, socio-economic, poverty alleviation, human resources, education, agriculture, and health sectors makes it a contemporary plan,” he added.
The FBCCI said it lauds the opportunity to legalise undeclared income, but pointed out it was against whitening black money.
“We are in favour legalising untaxed money acquired through legal means, but not money earned through illegal means,” said the business leader.