Finance Minister AMA Muhith yesterday said the county’s economy had reached the point where political movements hardly affected economic activity, growth and the budget implementation process.
“Unnecessary political movements may continue for a few days, but the common people and the government will not allow this type of political violence in the future,” he told a post-budget press conference in the capital yesterday, a day after he proposed the national budget for fiscal 2015-16.
“Earlier, political activities made a strong adverse impact on the economy, but this is now being overcome,” said the minister, in response to a question.
Industries Minister Amir Hossain Amu, Agriculture Minister Matia Chowdhury, Planning Minister AHM Mustafa Kamal and Information Minister Hasanul Huq Inu were present at the crowded press conference at Osmani Memorial Auditorium.
Regarding a question on the disclosure of the defence budget and the introduction of monthly pay orders for teachers, the finance minister said: “You may have many questions, but I do not have the answers to all of them at this time.”
The finance minister said the budget implementation capacity had increased during the last three years and the budget implementation rate was currently 96%, though earlier it was just 70% to 80%.
On achieving a 7% GDP growth rate, the finance minister said that without a big push to collect revenue income, the government would not achieve 7% growth in the next fiscal year.
“The high target has been set to break the 7% growth barrier,” he said.
Information Minister Hasanul Huq Inu said the government had done a great job tackling the budget deficit during the last seven years.
He added that there was no “democracy deficit” in the country.
Inu said the government had not achieved a golden GPA 5 but had achieved GPA 5 in its efforts to tackle militancy and so-called political programmes.
Regarding the district budget, the finance minister said: “We have not withdrawn the plan to introduce district budgets in the country.”
The government will enact laws to enhance the capacity of district administrations to implement their own budgets, he said.
In reply to a question on the rationalisation of subsidies and the adjustment of local fuel oil prices, Muhith said the government would introduce a new tariff policy on imported fuel oil that will rationalise the prices.
Matia Chowdhury said farmers were getting fair prices for their paddy yields under government procurement programmes.
In reply to a question, Matia said the government does not import rice from aboard and that Bangladesh was now a rice exporting country.
But she admitted that private traders do import rice from aboard.
In reply to a question about government plans to borrow massive sums to meet the next fiscal’s budget deficit, Bangladesh Bank Governor Atiur Rahman said there was excess liquidity in the banking sector and it would not be a problem to meet the credit target of Tk380 billion.
Private sector loans would not be crowded out by government borrowing from the banks, he said.
The central banker said foreign buyers were buying different types of bonds, including government bonds, from Bangladesh Bank.
The industries minister, Amir Hossain Amu, said: “It is not true that people are not investing in the country.”
A large number of local businessmen were seeking land from BSCIC, the country’s cottage industries corporation, he said.
Planning Minister AHM Mustafa Kamal said he hoped that the development expenditure of Tk970 billion would be implemented in equal outlays every quarter.
He said it had become a tradition to spend just half of the development budget in the first three quarters, then quicken the pace and implement 40% to 45% of the development outlay in the final quarter.
He further said: “We are trying to get out of this habit and spend the development outlay equally in every quarter.
“If we succeed, the annual development programme will be implemented properly.”