Budget implementation to be tougher than resource mobilization: Muhith

The budgetary provision for whitening black money has been the outcome of political compromise, rather than ethical considerations, by the political leadership of Awami League-led ruling alliance.
“Prime Minister Sheikh Hasina and I myself do not ethically support allowing the black money,” Finance Minister AMA Muhith told the post-budget press conference at the NEC auditorium on Friday afternoon.
He was replying to a volley of questions on widespread criticism on the measures, including the provision for whitening black money, implementation challenges and leakage of budgetary measures much ahead of placing the budget.
The Finance Minister was flanked by Cabinet Ministers, Advisers to the Prime Minister and senior officials concerned at the crowded press meet, an annual event after the announcement of the budget.
“Politics is the highest art of compromise,” Muhith said, amid repeated questions. “Politics feels all kinds of people, all kinds of interests. Expediency to avoid, consistency you must honour.”
Responding to a supplementary question if the decision is to promote the interest of vested quarters, he said the decision was not taken to satisfy any individual’s desire. “We’re a very democratic party.”
The Finance Minister said that he did not meet any individuals during the budget preparation process, but met with different associations as part of the budget preparation.
He said it is not an easy task to eliminate corruption while there is no easy way to have a quick solution to this problem. “You’ve to give a chance to the people so they try to get rid of corruption. There might be a possibility that anyone could change his mind (after whitening the black money).”
He said similar opportunities have been offered several times in the past. “We won’t say all of the past opportunities have been successful. We won’t also say that we’ll be successful. But we’ll have to give a try.”
Muhith said those who will invest their undisclosed money would have to show how much employment opportunities they would have created by 2012.
“We’ll take back all the rebates to be given under the amnesty if we see they could not create desired level of employment,” he warned.
In reply to a question, the Finance Minister said it would not be
possible to get rid of the tax evasion culture if the well-off people of the society dodge taxes.
About apprehension over the implementation of an otherwise huge budget, he said the single most challenge would be the implementation of the budget. “The budget implementation will be tougher than the resource mobilization and it will be a challenge bigger than what we faced while preparing the budget.”
Muhith said it has been a bold step to increase direct tax by 22 percent, but he remained uncertain whether he would be successful in achieving the target. “The tax burden would not go on to the people. You can see the evidence on the market.”
He said he would involve all the government machinery, administration and above all the people to help implement the budget.
The Finance Minister further said that he would strengthen the budget wings of all the ministries and identify some important expenditure heads for close monitoring. He said he would undertake the measures after June 30 as part of the government’s effort to implement the budget.
“It’s the future of implementation of the budget… I don’t know whether we have other alternatives,” he said.
About huge budget deficit, Muhith said the deficit was over 6 percent in the country in the 1990s while it is 7 percent in the neighbouring country and 10 percent in Pakistan.
“They are not facing any difficulty due to the deficit, which is more than us,” he said. “We’ll have to see whether the inflation remains under control.”
About allocation for BDR reconstitution, he said the required fund would be provided from the budget for the Ministry of Home Affairs.
He also assured of providing subsidy for agriculture sector as much as the sector needs. The fund will be given from the lump allocation in addition to already allocated funds.
Replying to a question, the Finance Minister said absence of opposition during the budget speech in parliament is not an indication of creating political instability to affect investment. “I hope they (BNP) would soon join the parliament and take part in the discussion on the budget.”
He said the first six months of the next fiscal would be critical for the economy while the world economy is expected to be stabilized by the year 2010.
The government would unveil a financial statement after assessing the economic performance during the first half of the next fiscal year, Muhith added.

Courtesy of The Bangladesh Today