Tk 3 trillion plus Bangladesh budget this time, says Finance Minister Muhith

Finance Minister Abul Maal Abdul Muhith has said the size of the 2015-16 Bangladesh budget will be more than Tk 3 trillion.

Anticipated political stability, a drop in international oil and food prices, and the ‘comfortable’ state of economy seem to have emboldened him to go for such a huge budget.

A relaxed finance minister spoke about his plans in an exclusive interview with bdnews24.com at his Sylhet residence on Friday morning.

He said special attention would be given to the development of enclaves in this year’s budget.

The finance minister will present the budget proposal in Parliament on June 4 and it is likely to be passed on June 30.

This is Muhtih's ninth budget and he says its size will cross Tk 3 trillion.

“I have been saying it will be around Tk 3 trillion. But since our Annual Development Programme (ADP) has been increased to Tk 1 trillion by Tk 45 billion and the revenue expenditure has also slightly increased, my actual target will be more than Tk 3 trillion.”

He said he was not worried over the jumbo-size budget. “I am rather feeling happy to be able to present such a big budget.”

The current domestic and international situation, he says, gave him the courage to risk such a jumbo budget.

“I have never presented a budget before in such a relaxed state of mind,” Muhith said ahead of presenting seventh consecutive budget. 

“I think we have managed to put an end to blockades and shutdowns.  Peace has returned and this will continue. Any kind of disturbance and violence will not be tolerated,” Muhith asserted.

“Our entrepreneurs have regained the confidence. They will now invest and do business without any fear. They will contribute in country’s progress.”

On the other hand, fuel prices have dropped by half in the global market. Food prices are also low. Inflation is also under control. Foreign exchange reserve has touched $24 billion. Remittance by expatriates has also increased. Import is going up but so are exports.

“All these have made me hopeful and that is why this time size of the budget will be bigger,” he said.   

When asked what new proposals can be expected in the budget, the finance minister said, “There will be special allocation for the enclaves we are getting back from India. Both my government and I think it is our duty to do something for them.” 

Indian parliament has recently passed a Constitution amendment bill for exchange of 162 enclaves between the two countries.

There are around 14,000 people in the 51 Bangladesh’s enclaves within India, while Indian enclaves have a population of 37,000.

When asked whether “all those who can afford” would be brought under tax net this time as he had hinted recently, the finance minister said it would not be possible in this budget. 

But he said a large section of the population would be brought under tax net this time. 

“In a country of 160 million, only 1.1 million people pay tax. This is a matter of shame. This cannot go on.” 

I will increase the number of tax payers at any cost, said the finance minister. "The revenue board had conducted a survey and based on its findings some more people would be made to pay tax."

Those numbers would not be “very less", he said.

He said the deficit would be within five percent.

“This budget will also provide for mega projects like Padma bridge construction, Dhaka metro rail and construction of Moghbazar-Mouchak flyover,” he said. 

He said the Padma bridge would be completed before the present government finishes its term. More than 20 percent of the work has already been completed.

Stating that geological survey for the metro project has already started, the finance minister said they wanted to complete it by 2019. 

Priority would also be given to the implementation of other mega projects, he said.