# NBR under pressure to collect revenue
# Country in the massive loans trap
# Businessmen in fear of survival challenge
# BGMEA seeks policy support in budget
# Effective steps needed to control inflation
Finance Minister Abul Hassan Mahmood Ali is going to place the national budget for 2024-2025 fiscal year today. Controlling inflation, balancing reserves and increasing revenue collection are seen as major challenges in the budget. However, economists and businessmen want inflation to be controlled in the budget, interest rates should be reined in.
The probable size of the proposed budget for the fiscal year 2024-2025 has been estimated at Tk 7,96,900 crore. In this budget, the target of revenue collection has been estimated at Tk 5,41,000 crore. Of this, the National Board of Revenue (NBR) will have to collect Tk 4,80,000 crore. NBR officials said that collecting this amount of revenue is a big challenge.
Economist and capital market expert Prof Abu Ahmed said the country's economy is getting stuck in the debt trap. We are running on loan money. As a result of one debt after another, we are getting stuck in the debt trap. To cover $5 billion in energy spending, the government has to pay $1 billion every month in interest. This debt is leading the economy towards a crisis.
Criticizing the Bangladesh Bank governor, the economist said that the governor could not play any effective role in controlling inflation in the last one year. On the contrary, he has increased the pressure on trade and commerce in the country by leaving the interest rate on the market. He closed the way to investment and employment. As a result, business is collapsing. The example of which can be seen in the latest statistics published by the Export Promotion Bureau (EPB) where the readymade garment industry has suffered a big blow in export earnings in one year.
Meanwhile, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President SM Mannan Kochi told The Daily Post that the growth of export earnings has decreased by about 2.86 percent due to the recession in the world market. Besides, the interest rate on bank loans has also increased by about 17 percent which has become a major obstacle for the overall economy of the country. The cost of all production products, including workers' salaries and gas, has increased by about 50 percent. In such a situation, the government needs policy support to protect investors.
The BGMEA president commented that now the businessmen are in the challenge of survival. The business leader also thinks that the industrial sector needs policy support in the budget to increase industry and investment in the country.
Dhaka Chamber of Commerce and Industry (DCCI) President Ashraf Ahmed said the businessmen are already under pressure due to the global situation. On top of that, the cost of traders has increased several times due to the increase in interest rates. This will hinder investment and employment. Therefore, effective steps need to be taken to control inflation in the budget.
Meanwhile, the third session of the 12th Jatiya Sangsad and the first budget session of the current tenure of the present government is going to be held today. Finance Minister AH Mahmood Ali is going to place the national budget for 2024-2025 fiscal year in the parliament at 3pm today. In the budget presentation, the finance minister will present the summary of the 329-page budget before the MPs.
According to the Ministry of Finance, the size of the proposed budget for the upcoming fiscal year 2024-2025 is Tk 7,97,900 crore. Its deficit is estimated at Tk 2 lakh 56 thousand crore. They have to rely on foreign loans and the country's banks to meet the deficit. The size of the budget for the current fiscal year 2023-2024 was Tk 7,61,785 crore. The size of the upcoming budget is 4.60 percent more than the current budget.
Several officials of the NBR said that the revenue target in the proposed budget for the next fiscal year is Tk 5,41,000 crore. There is a budget deficit of Tk 2 lakh 56 thousand crore. The government plans to borrow from various domestic and foreign sources to meet the deficit. On the other hand, the NBR has to collect revenue of Tk 4 lakh 80 thousand crore in the coming fiscal year. Which is 70 thousand crore more than the revised target of the budget of the current fiscal year. In such a situation, it is very challenging to collect such a big target revenue for the upcoming financial year. The NBR is being very strict to meet this revenue collection target given by the government. Many sectors have to cut the budget.
NBR Chairman Abu Hena Md Rahmatul Muneem said, "Every time the budget target is given, the real helplessness of the NBR is exposed. Without calculating the capacity, the target is given from the Ministry of Finance, it is said that this target has to be met. So other costs are determined in line with the target. Then an innovative thought, a thought of reform; there is no opportunity to do anything. We just have to go after that target."
According to the NBR, the revenue collection in the 10 months from July to April of the current fiscal year was Tk 2,89,377 crore. The target was Tk 3 lakh 13 thousand 584 crore. Despite the deficit, revenue collection growth has been achieved at 15.61 percent. To meet the target, the NBR will have to collect revenue of Tk 96,416 crore in the last two months (May and June) of the current financial year.In the first 10 months of the current fiscal year, the revenue collection in import-export duty has been Tk 82,522.28 crore with an increase of 11.18 percent, value added (VAT or VAT) by 16.01 percent growth and Tk 1,13,709.81 crore with an increase of 16.01 percent. On the other hand, income tax collection of 19.33 percent growth is Tk 93,145.13 crore.
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