The Metropolitan Chamber of Commerce and Industry has expressed its concern over the government’s target of Tk 25,993 crore bank borrowing in the
next financial year saying that the move might create liquidity crisis.
The chamber urged the government to limit its borrowing from the banking channel and requested it to find alternative source of funding.
‘If the actual borrowing exceeds the target amount, it could result in crowding out private sector credit growth and will cause liquidity problem for banks and financial institutions,’ said the MCCI in a post-budget statement on Friday.
It termed the proposed budget for the financial year 2013-14 ambitious ahead of the next national elections.
‘Since it is the last budget of the present government, naturally it aims to be an ambitious one,’ it said in the statement.
The MCCI also said that financing and implementing the proposed budget will be major challenges in the backdrop of global slowdown.
It also expressed its dissatisfaction over Tk 3,721-crore allocation for the agriculture sector.
‘It may hinder the growth of production in the agriculture sector,’ it said.
The trade body also said an increase in the rate of corporate income tax for few sectors might discourage other companies to get listed with the stock exchanges.
The chamber also expressed its dissatisfaction over allowing legalisation of undisclosed money as it would discourage regular taxpayers.
It hailed the proposal of allocation of good amount of fund from the Annual Development Programme, Tk 5,374 crore and Tk 6,852 crore for the transport sector and construction of Padma Bridge respectively.
The MCCI expressed its satisfaction over the stimulus package announced to strengthen the capital market which includes withdrawing AIT on premium over face value of shares and on bond sale, 15 per cent tax rebate on investment in private mutual funds and exemption of tax on income from dividend up to Tk 10,000.
-With New Age input
