The Institute of Chartered Accountants of Bangladesh (ICAB) has said economic growth at 7% in the next fiscal year is possible to achieve, but would be difficult unless good governance and increased investment can be ensured.
“Since export, remittance and industrial output continue to rise, the growth target in FY16 budget is not impossible. But what needs to be done is to make conducive investment climate and to stifle corruption,” said ICAB President Masih Malik Chowdhury at a post-budget discussion.
The Institute of Chartered Accountants of Bangladesh hosted the programme in the city yesterday.
Laying emphasis on attracting both local and foreign investments, he said rise in private investment, plus foreign direct investment, which now accounts for only 1% of GDP, is also necessary.
Echoing the president, ICAB Vice-President AF Nesaruddin urged the government to cut corporate tax for non-listed companies to net foreign investment.
Former ICAB president Humayun Kabir said as the trade is increasingly becoming integrated with the globe, it is important to establish transparency and accountability in every sector in a bid to woo foreign investment.
Another former ICAB president Syful Islam said people’s participation from all sectors is the key to implement the budget as the government cannot do it alone.
He said every sector has got proper attention in the budget, but the government should enhance efficiency of people involved in implementing the budget.
Former ICAB president Abbas Uddin Khan said the quality of annual development spending needs to be improved, as inefficiency in spending might create backlog of projects taken in ADP like previous years.
ICAB councilor Shahadat Hosssain said fiscal bank borrowing target might not impact the private sector credit growth as lowering interest rate on national savings instruments will encourage people to deposit money in the banks that already have a huge idle money.
ICAB has made a set of recommendations for setting up a research and development wing at the National Board of Revenue (NBR), separating tax appellate tribunal from the NBR and making Financial Reporting Act effective in line with the advice of Cabinet to consider in the budget.