MCCI discussion told
Economists and businesses on Sunday said 7.2 per cent GDP growth and revenue collection envisaged in the budget for the new fiscal year could not be achievable
due to lack of political stability, governance and infrastructure.
They emphasised on political stability and national consensus on some specific political issues for smooth implementation of the proposed budget and achieving sustainable economic growth.
At a discussion on the proposed budget 2013-14 jointly organised by Metropolitan Chamber of Commerce and Industry and Policy Research Institute at the chamber’s conference room in the city, they, however, said the inflation target might be attainable but would require careful management of domestic liquidity.
PRI executive director Ahsan H Mansur presented the keynote paper in the discussion which projects that there are a number of challenges for the domestic liquidity management as possible significant increase in salaries in the public sector and wages in the garment sector would tend to intensify wage-push inflation in the economy.
He said the fiscal management was marked by the better ADP implementation and improved utilisation of foreign aid but a weak revenue performance owing to slowdown in domestic activity.
‘This budget can not be termed as an election year budget because it does not allow for any additional fiscal stimulus than in any normal year’s budget,’ Mansur said.
He suggested an effective implementation of modernisation plan of the NBR to sustain revenue growth over the medium term.
Industries minister Dilip Barua said as per the election pledges the present government had been giving logistic and policy support to ensure a vibrant private sector.
The government itself will not set up any industry but give support to the private sector to transform the country into an industrialised nation, Dilip said.
In the budget for the FY 2013-14 the proposed changes in duty structure for import of capital machinery, chemicals and raw materials are likely to help spur industrial growth and proposed extension of the existing tax-holiday facilities from June, 2013 to June 2015 will be incentives for setting up new industries and creating employment opportunities, he said.
Former education minister M Osman Faruk said already the country had been derailed from the track of becoming a middle income country as the GDP growth rate stagnated.
He said, ‘To be a middle income country we must have to achieve 8-10 per cent growth.’
Osman said it would not be possible to implement the proposed budget unless national consensus on some political issues was reached.
Expressing concern over the smaller allocation for the agricultural sector, Metropolitan Chamber of Commerce and Industry president Rokia A Rahman said this might have negative impact on farm production.
She said the projected GDP growth rate of 7.2 per cent in the proposed budget would be extremely difficult to attain without having political stability.
Rokia said allowing whitening of undisclosed money was disappointing as the move would discourage the honest taxpayers and encourage dishonest to generate more black money.
Board of Investment executive chairman SA Samad said the national budget was not only the projection of yearly debit and credit, it should reflect the economic development.
It is unrealistic to depend so much on subsidy as subsidy model can not be sustainable, Samad said.
-With New Age input
