Muhith ‘in a fix’

Finance Minister AMA Muhith says he is ‘in a fix’ in trying to meet the demands of various ministries in the next budget.

He said he was “not worried” about the International Monetary Fund’s (IMF) concern regarding an increase in the budget amount each year.

“The IMF has conveyed its worries over providing tax rebates in various sectors and donations. They believe these will pose a challenge to the revenue income in the next budget,” he told reporters after a meeting with visiting IMF representatives.

Muhith said the IMF had termed Bangladesh’s budget “ambitious” as it increased each year.

“I have told them that it won’t be a problem. There is much to gain from a big budget,” he said.

The minister considers curtailing the proposed allocations of the ministries in the budget for the 2014-15 fiscal a challenge.

He said Bangladesh’s budget doubled in size over the past five years.

“The revenue income, too, increased two fold, leading to soaring expectations [of the ministries]. It is driving me crazy,” Muhith said.

All the ministries were demanding allocations in both development and non-development sectors, he said. “I’m in a fix as a result.”

He said the revenue income will be fixed at 14 percent higher, and the growth target would be set at 7.3 percent.

About the IMF’s observation that Bangladesh would see a growth of 6.5 percent in the next fiscal, the finance minister said, “The IMF is usually a bit conservative.”