Risks remain in implementation
Finance minister says in post-budget briefing; vows to tackle risks thru' higher revenue, austerity, reduction in subsidies
Implementation of the proposed budget for the next fiscal year will face some risks, but those will be dealt with increased revenue earning, austerity in government spending, and reduction of government subsidies, said Finance Minister AMA Muhith yesterday.
"The government task force, that was created to deal with the effects of the global economic recession, will meet within the next two months and discuss measures for dealing with the new risks," the minister said in a post budget media briefing in Osmani Memorial Auditorium in the capital.
The government will depend on the parliament and the civil society as well for the matter, he said. "In my budget speech, I also talked about some tactics to deal with the risks," the minister added.
Muhith was responding to post budget speech media reactions, aided by other ministers, advisers, and secretaries concerned.
He said as usual the proposed budget was labelled as too enormous and traditional, but he would not comment on those observations as every new budget is labelled as such.
He welcomed main opposition BNP's alternative budget proposal, but said it came too late as already his proposal was being printed by then.
Most of BNP's proposals are already in the proposed budget, he said adding that it seemed like the opposition borrowed from the government's proposals.
About BNP's reaction to the new budget and its calling of a hartal, the finance minister said, it is BNP's culture to have a negative approach to everything. Creation of unrest through hartals is against the country's interest, he added.
He said to achieve a high economic growth, investment in the private sector must increase, and that is why there are many incentives for the sector in the proposed budget.
In the next fiscal year many development projects will be implemented through public-private partnership (PPP), for which Tk 3,000 crore has been allocated in the new budget, and it might need to be increased, the minister said.
An agreement has been signed for construction of a flyover in the capital under PPP, which will cost Tk 9,000 crore, and the government will fund half of it, he said.
The government decided to build two coal-fired power plants in the next fiscal year, one of which will be built jointly with India, while the partner for the other is yet to be picked, he said.
The government decided to take up many power projects under PPP, for which it will encourage domestic bidders to partner up with foreign investors, he said.
The minister said in the next fiscal year crop insurance mechanism will be launched on a pilot basis in one upazila. Initially the chosen crop will be potato.
About the capital market Muhith said the government already took many steps to stabilise the market, but a vested quarter is trying hard to keep it destabilised.
Planning Minister AK Khandker, who was present at the briefing, said the sweeping allegation that the government always fails to implement development projects is not correct, the rate of implementation is gradually increasing.
About the delays in implementing foreign funded projects, he said the delays usually happen because the donors themselves take too long to approve consultants, and tender proposals.
For the next fiscal year the government decided that ministries handling development projects will identify the problems in the beginning of the year so implementation can go smoothly, Khandker said.
Education Minister Nurul Islam Nahid, who was also present, said in the next fiscal year monthly payment orders for non-performing private education institutions will be cancelled in a bid to avoid wastage of public money, but well performing institutions will not be affected.
Economic Affairs Adviser Dr Mashiur Rahman criticised the Centre for Policy Dialogue (CPD) for its questioning of the government's estimate of 6.7 percent GDP growth in the current fiscal year.
He said CPD's quality has gone down, and the private think-tank is facing a sort of stagnation.
The adviser also gave a theory that the gap between investments and national savings can add 1.5 percentage point to the GDP growth.
He said transit fee for foreign countries will be determined based on GAT and WTO rules. "But we want a rational return for our investments and services," he said.
The adviser said a taskforce comprising experts has been working on the transit fee issue.
Energy Adviser Tawfiq-e-Elahi Chowdhury, Bangladesh Bank Governor Atiur Rahman, Economic Relations Division Secretary Mosharraf Hossain Bhuiyan, Finance Secretary Mohammad Tareq, and National Board of Revenue Chairman Nasiruddin Ahmed also answered questions of reporters.
"The government task force, that was created to deal with the effects of the global economic recession, will meet within the next two months and discuss measures for dealing with the new risks," the minister said in a post budget media briefing in Osmani Memorial Auditorium in the capital.
The government will depend on the parliament and the civil society as well for the matter, he said.
"In my budget speech, I also talked about some tactics to deal with the risks," the minister added.
Muhith was responding to post budget speech media reactions, aided by other ministers, advisers, and secretaries concerned.
He said as usual the proposed budget was labelled as too enormous and traditional, but he would not comment on those observations as every new budget is labelled as such.
He welcomed main opposition BNP's alternative budget proposal, but said it came too late as already his proposal was being printed by then.
In the next fiscal year many development projects will be implemented through public-private partnership (PPP), for which Tk 3,000 crore has been allocated in the new budget, and it might need to be increased, the minister said.
An agreement has been signed for construction of a flyover in the capital under PPP, which will cost Tk 9,000 crore, and the government will fund half of it, he said.
The government decided to build two coal-fired power plants in the next fiscal year, one of which will be built jointly with India, while the partner for the other is yet to be picked, he said.
About the capital market Muhith said the government already took many steps to stabilise the market, but a vested quarter is trying hard to keep it destabilised.
Planning Minister AK Khandker, who was present at the briefing, said the sweeping allegation that the government always fails to implement development projects is not correct, the rate of implementation is gradually increasing.
About the delays in implementing foreign funded projects, he said the delays usually happen because the donors themselves take too long to approve consultants, and tender proposals.
For the next fiscal year the government decided that ministries handling development projects will identify the problems in the beginning of the year so implementation can go smoothly, Khandker said.
Economic Affairs Adviser Dr Mashiur Rahman criticised the Centre for Policy Dialogue (CPD) for its questioning of the government's estimate of 6.7 percent GDP growth in the current fiscal year.
He said CPD's quality has gone down, and the private think-tank is facing a sort of stagnation.
He said transit fee for foreign countries will be determined based on GAT and WTO rules. "But we want a rational return for our investments and services," he said.
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