CPD pushes for keeping option in 2016-17 budget to invest undisclosed money

The Centre for Policy Dialogue (CPD) says the budget for the 2016-17 fiscal year should have an option to invest undisclosed money.

Staff Correspondentbdnews24.com
Published : 17 April 2016, 04:55 PM
Updated : 17 April 2016, 04:56 PM

The private research body also recommended government monitoring of non-government organisations and supervision of the spending of 25 percent of their foreign funds.

CPD fellow Debapriya Bhattacharya made the suggestions at a pre-budget discussion on Sunday.

"Properties of unidentified persons and undisclosed income will have to be brought into mainstream investment. There should be an option for this," he said.

Penalty should be slapped if these properties and income are not invested, he added.

At present, a person can legalise undisclosed income by paying unpaid taxes and 10 percent of the tax amount as a fine.

During the 2007-8 military-backed caretaker government's rule, Tk 96.83 billion of undisclosed and illegal income was legalised and pumped into the mainstream economy.

The amount was Tk 20.98 billion during the Awami League's 2009-14 term.

Realtors' association REHAB, too, wants an option to whiten black money through 10-year investments in the housing sector.

Such a measure will prevent money laundering and increase investments, the association argues.

Bhattacharya said government survey showed less than half the taxable people paid tax. He stressed gradually bringing those not paying taxes under the tax net.

Bigger budget?

Finance Minister AMA Muhith hinted that the 2016-17 fiscal year budget would be to the tune of Tk 3.4 trillion.

But the CPD says the sum should be bigger.

"The growth of our gross domestic product is increasing. The size of our budget should be bigger in line with our current economic conditions," Bhattacharya said.

The budget of the current 2015-16 fiscal year is 17 percent of the GDP.

"The budget of a country with economic conditions like ours should be 20 to 24 percent of the GDP," he said.

"But we have weaknesses in spending foreign aid. We should enhance our organisational ability for this," he added.

The CPD fellow also slated the government for "not doing much" over the Bangladesh Bank heist.

"The Philippines had senate committee meetings in its Parliament, but where is our parliamentary standing committee? Why didn't they call any meeting?" he asked.

Bangladesh lost $81 million in the cyber theft. The money was transferred to and beyond the Philippines in early February.