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Acting Secretary General rejects the proposed budget terming it high ambitious; observes many challenges for its implementation
Friday, 03rd June, 2016

Acting Secretary General of Bangladesh Jamaat-e-Islami, Dr. Shafiqur Rahman has issued the following statement on 3rd June, 2016 terming the proposed budget of Taka 340,605 crore for the upcoming 2016-17 financial year which has been placed by the finance minister Abul Mal Abdul Muhith in the parliament on 2nd June as a ‘high ambitious budget.’

This proposed high ambitious budget with huge deficit would cause further crisis and complicacies for the countrymen. It would increase the living cost as well as the price of the essential commodities.

The proposed budget has been placed with a deficit financing of Tk 97,853 crore. But there is no directive how this huge deficit would be met. The proposed budget has set a high target of revenue collection with the hope of getting more grants from the local and foreign sources. 29 percent of this budget is loan based. The budget has estimated a target of collecting of 38,947 crore taka as loan from the foreign sources. While, the rest of the 61, 548 crore taka would be managed from the local sources. Resultantly, the huge tax pressure of 65, 350 crore taka would be imposed upon the nation. To pay the previous loans, 8, 158 crore taka would be spent. The amount of the neat foreign credit would be 30,789 crore taka. These data clearly substantiates that this budget is a foreign loan based huge ambitious budget.

The proposed budget has made several pledges to take effective measures of upgrading the nation to a middle income country through the continuation of sustainable development and growth. But regrettably the marginal, lower middle class and the middle class have been neglected repeatedly in this proposed budget. The budget sets target of 2, 42, 752 crore taka for domestic revenue collection whose 71 percent would come approximately from vat and general taxes. The proposed budget also increased the level of taxation. So the poor communities would have to pay more taxes and social discrimination would be increased as well. Overall, implementing budget, revenue collection as per the target and the estimated foreign credit are the biggest challenge of this budget.

The proposed budget made another unethical move by giving the provision of legalizing the black money. This step would facilitate the ill practices like bribery and corruption. This budget would cause more taxation in retail and wholesale level. It would also propose to bring all advertisement within the margin of vat as a part of the media compression policy, which would foil the media interest.

The proposed target set the GDP growth as 7.2 percent, which would be tough to implement. Mass sufferings would be increased for the excessive taxation process. The minimum tax free income limit has been prevailed to 2.5 lac taka which should be increased this time. Budget also proposed to impose additional charge upon the mobile subscribers. Due to proposed budget the price of some necessary items including imported rice, mosquito net bat, cakes, biscuits and bakery products, washing machines, children books, agricultural accessories, travel bags, tea, medical equipments, papers, hardboard, sponge sandal and rubber shows would be on the rise.

Whereas, price would be increased for hybrid car, motor cycles, LED bulbs and raw material of cement. Due to such reduction, the rich quarter would be benefited. This budget could not ensure social equality and equity.

This budget would pave the way for the ruling party men to get more illegal facilities in order to loot the state money and properties. No initiatives have been taken in this budget to secure the interest of the poor sections. The budget proposed to increase 21 percent allotment for the Home Ministry which is indicating that suppression and torture would be increased more in the days to come.

The incumbent government is not an elected government. So they do not have any liability for the countrymen. So this budget has been placed to ignore the interest of greater populations and ease the way for ruling party men for enjoying more unethical facilities. The proposed budget would ingrain the one party rule of the present government instead of establishing democracy and rule of law. So we are rejecting the proposed budget for 2016-17 fiscal years.”