The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Saturday termed the proposed national budget for FY 2019-20 as ‘business-friendly’ and ‘pro-people’. The apex business body of the country also suggested the government to ensure strict monitoring measures for effective implementation of the budgetary measures.
FBCCI came up with its formal reaction over the proposed budget through a post-budget press briefing at the Federation Bhaban at Motijheel in the city. FBCCI leaders asked the government to minimize its reliance on the banking sector in order to finance its projected budget deficit in the next fiscal so that the private sector investment faces no hurdle.
FBCCI President Sheikh Fazle Fahim read out a written statement at the press briefing in the presence of the board directos and leaders of other associations and chambers. "Instead of relying on the banking sector, the government should utilize foreign remittances, infrastructure funds, bonds, and other sources to mitigate its budget deficit," he said.
Mentioning that the government has set a higher borrowing target from banks for FY2019-20 in order to finance the projected budget deficit, Fahim commented that the decision would not create any major problem as the practice is nothing new. Every year banks have to lend money for deficit financing of the budget, he added.
Expenditure in the next fiscal year has been estimated at Tk 5, 23,190 crore, while the projected revenue is Tk 3, 81,978 crore. As a result, the overall budget deficit (excluding grants) is expected to be Tk 1, 45,000 crore, about 5 percent of the GDP. According to the budget statement, Tk 47,363 crore of the TK 77,363 crore financed from domestic sources will be borrowed from the banking system. In the previous FY2018-19, the government had set a Tk 42,029-crore borrowing target from banks.
He termed the inclusion of nano technology, bio-technology, robotics, artificial intelligence (AI), material science, internet of things (IOT), quantum computing, blockchain and other similar technologies as a preparation for graduating to 4th industerial revolution from 3rd industrial revolution as creative initiative.
Laying emphasis on popularising banking or others authorised channels for foreign remittance, he said these initiative would leave a positive impact on the country's economy. It's also praisworthy that 2 percent of incentive has been given on remittance sent by NRBs through legal chennels.
"The country's economy stands on a firm footing today because of the people-oriented and business-friendly budgets, given by the Awami League government for the last 10 years,” he said, adding, "The country has gradated into a develoing country by successfully attaining the millennium development goals (MDGs) and moving forward to implement the sustainable development goals (SDGs)."
The FBCCI president mentioned that tax holoday facility till 2024 will encourage indistrial exposure. Also, 1 percent stimulus for RMG and decision of decreased tax rate will help boost export creating employment opportunity. He mentioned that various international agencies like Standard Chartered, World Bank Bloomberg, HSBC, IMF, Moody’s, Standard & Poor, Fitch, Price Waterhouse Coopers, JP Morgan has acknowledged Economic Trajectory and Macro Economic Stability of Bangladesh while JETRO has published a report terming Bangladesh as Top Choice for investment to the Japanese investors.
Immediate past president of BGMEA and Director of FBCCI, Siddiqur Rahman; President of Dhaka Chamber Osama Taseer; and other senior directors were present in the press conference. FBCCI leaders said they would analyse the proposed budget in details and submit another detailed proposal to the finance minister before approval of the budget after consulting with chambers, associations under the FBCCI.
