Adjustments and Revisions
Honorable Speaker
39. In the last two and a half months, there have been attempts to make the country’s political situation unstable. This was a major hindrance to the smooth operation of trade and commerce. The foreigners who came to visit the country for negotiating contracts faced difficulties during their movements. In this situation, we faced a dilemma whether to retain the positive outlook that we gave to this august House on 11 March this year on the revised budget. It appears that the violence created during hartals and the state of anarchy triggered by Jamaat-Shibir is gradually coming under control. In the first half, though collection of import and supplementary duties declined, supplementary duties picked up in the latter half of the fiscal year. Buoyancy in direct taxes is continuing. The manpower of NBR is being scaled up after three decades and the organogram is being restructured to bring momentum in revenue collection. Non tax revenue collection is satisfactory. The activities of the government sector have gained further momentum. In consideration of these factors, I am presenting the revised budget in Table 8 annexed to this speech.
In the budget of FY 2012-13, the target for revenue income was set at Tk1,39,670 crore (13.4% of GDP). In the revised budget, the target for revenue income is kept unchanged. I hope the revenue collection target of this fiscal year will be achieved. At the same time, it will also be possible to increase revenue income (1% of GDP) compared to the actual collection of the previous fiscal year.
The total government expenditure was estimated at Tk1,91,738 crore in the current fiscal year’s budget (18.4% of GDP). Now, it has been decreased to Tk1,89,326 crore (18.2% of GDP) by reducing Tk2,412 crore. Due to reduction in project aid the allocation of Annual Development Program (ADP) now stands at Tk52,366 crore. However, the revised ADP size will actually be Tk57,120 crore taking into account Tk4,754 crore of the self-financed projects of the autonomous bodies and corporations. The allocation for subsidy in the original budget was Tk35,046 crore which includes subsidies for agriculture, power and energy sectors. In the revised budget, the amount of subsidy has been increased to Tk38,808 crore after an additional allocation of Tk3,762 crore. In fact, this increase is attributable to payment of arrears accumulated over the last few years. In order to reduce the size of public expenditure, we adjusted administered prices of electricity and fuels to harmonise them with international prices which we expect to continue in future too. The additional allocation for subsidy has been provided for by re-appropriating funds allocated for PPP initiatives and investments in share and equities and, by slashing down discretionary expenditures.
In the FY 2012-13 original budget, deficit was estimated at 5.0% of GDP, which has been marginally reduced to 4.8% of GDP in the revised budget. Out of this, 1.7% of GDP will be financed from external sources and rest 3.1% from domestic sources. Again out of this 3.1 percent, 2.7% will be financed by borrowing from banking system.
Since we assumed office, we have been diligent in speeding up the ADP implementation processes by enhancing project aid absorption capacity. In this regard, Planning Commission has been closely monitoring the progress of project implementation of 10 large ministries. I personally met the officials of all the ministries and divisions on different occasions. Tripartite meetings were held among Economic Relations Divisions, project implementing ministries and development partners. Field monitoring of projects facing implementation problems is going on. In the meantime, we have started reaping the benefits of these programs. The utilisation of project aid in this fiscal year is very encouraging. While in FY 2008-09 actual ADP spending was Tk.19,438 crore (3.2% of GDP), in the current fiscal year, it has grown to Tk52,366 crore (5.0% of GDP).
Madam Speaker
40. I would like to apprise the citizens through you that the gap between the estimates that we worked out at the beginning of the fiscal year and the revisions that we made at the end of the fiscal year has significantly reduced. This means that our implementation capacity has enhanced and our cooperation with the development partners has improved.
41. However, there is a risk in this assumption. I would like to make an appeal to the citizens through you and this august house to resist all kinds of violent protests, activities leading to the damage of public property, vandalism by Jamaat-Shibir, arson and killings and bring an end to the political impasse through dialogue.
Chapter V
FY 2013-14 Budget Structure
Medium Term Assumptions
42. Now I would like to reflect briefly on the overall budget structure of FY 2013-14. I have prepared the budget for next fiscal year based on a Medium Term Macroeconomic Framework. The building blocks of this framework are - continuity in pursuing existing monetary and fiscal policy strategies and sustaining macroeconomic stability. It is presumed that the global growth will fairly increase in 2013 and afterwards. As a result, Bangladesh’s trade, investment and manpower export will gain further momentum. In the Table 9 of Appendix A, a matrix on budget structure and in Tables 10 and 11, data on the overall budget and sector wise ADP allocations have been presented.
43. We are widening fiscal space by scaling up the revenue collection program through comprehensive reform initiatives and ensuring public expenditure control. Our aim is to channelise additional resources to vital growth-supportive projects. In case of investment expenditure, we are focusing on implementing quality projects. Besides, we are continuing reforms with a view to increasing the monetary space. We expect the space created by fiscal and monetary sectors will have a conducive impact on investment environment and facilitate 7.2% growth in FY 2013-14, raising it to 8% in FY 2014-15.
44. A number of factors will buttress agricultural growth – such as innovation in high yielding rice and paddy seeds, extension at the field level, provision of target based agricultural assistance, increase of agricultural credit flow and inspection, supply of uninterrupted power for irrigation, diversification of agricultural products along with extension of marketing facilities.
45. According to the projection, stability in energy prices currently prevailing in international markets will continue in 2014 as well. Besides, fertiliser and food prices may slightly fall. I expect food inflation will come down to a tolerable level due to satisfactory domestic agricultural production and downward trend of food prices in the international market. On the other hand, we will keep on pursuing our strategies of tight monetary policy and fiscal consolidation. In addition, the increase of foreign exchange supply will keep the exchange rate of Taka stable. In these circumstances, I hope that overall inflation will be reduced to 7.0% in the next fiscal year and to 5.5% in the medium term.
Budget Structure: Table 9
46. Now I will briefly present the proposed revenue and expenditure estimates for FY 2013-14:
47. The revenue income for FY 2013-14 has been estimated at Tk1,67,459 crore which is 14.1% of GDP, of which NBR tax revenue is Tk1,36,090 crore (11.4% of GDP). Revenue from Non-NBR sources has been estimated at Tk5,129 crore (0.4% of GDP). In addition, Tk26,240 crore (2.2% of GDP) will be collected as Non Tax Revenue (NTR).
48. The total expenditure for FY 2013-14 has been estimated at Tk2,22,491 crore (18.7% of GDP). The allocation for non-development and other expenditure has been estimated at Tk1,56,621 crore (13.2% of GDP). Expenditure for ADP has been estimated at Tk65,870 crore (5.5% of GDP).
49. The overall budget deficit will be Tk55,032 crore which is 4.6% of GDP. Of this amount, Tk21,068 crore (1.8% of GDP) will be financed from external sources and Tk33,964 crore (2.9% of GDP) from domestic sources. Of the domestic financing, Tk25,993 crore (2.2% of GDP) will come from the banking system and Tk7,971 crore (0.7% of GDP) from savings certificates and other non-banking sources.
Overall Expenditure Structure:
51. Now, I would like to give a brief outline of the overall expenditure (development and non-development) structure of the proposed budget. We have classified different ministries/divisions into three groups based on their functions - social infrastruc-ture, physical infrastructure and general service sectors. In the proposed budget, 23.17% has been allocated to social infrastructure sector, of which 19.6% has been proposed for human resource (education, health, and other related sectors), 30.18% of total allocation has been proposed for physical infrastructure sector, of which 14.50% has been proposed for overall agriculture and rural development, 8.66% for overall communication sector and 5.1% for power and energy sector. 22.45% of total allocation has been proposed for general services sector. 3.29% of total allocation has been proposed for Public-Private Partnership (PPP), financial assistance for different industries, subsidy, and equity investment in nationalised banks and financial institutions. 12.47% has been proposed as interest payments. Remaining 8.44% will be spent for net lending and other expenditures. Hopefully, the budget framework proposed in view of the domestic and global perspectives will support growth, contain inflation and reflect aspirations of the mass people.
Chapter VI
Resource Allocation in the key Sectors of the Economy
(1) Power and Energy
Madam Speaker
53. While providing resources we attached highest priority to the power and energy sector. You might have noticed, right from the beginning how we allocated resources to revitalise the economy. Our endeavors have paid off and we see some visible achievements. Today, I have placed a booklet titled “Roadmap on Power and Energy Sectors: Trend of Progress” before this house, where detail information including data on our achievements and future plans for the power and energy sector have been captured. Once all the power plants that we have decided to install are in place, we will have a generation capacity of 19,701 MW of electricity by 2017 and supply and demand of power will be in equilibrium.
54. Considering the demand and importance of power and energy sector, I propose to allocate Tk11,351.20 crore for FY 2013-14, development and non-development budgets combined, for the Ministry of Power, Energy and Mineral Resources.
Agriculture Sector
Madam Speaker
57. Agriculture sector has grown annually at an average growth rate of 3.9% during our tenure. Consistent with this, we have fixed the production target at 374.59 lakh metric tons (MT) of food grains in FY 2012-13, of which Aush constitutes 23.70 lakh MT, Boro 187 lakh MT, Aman 133 lakh MT, wheat 10.36 lakh MT and maize 20.42 lakh MT. If this trend continues, hopefully the desired growth will be achieved in this sector in the upcoming years.
58. We are providing all possible support to the farmers to sustain our achievements in the agriculture sector. I am pleased to inform you that the introduction of agricultural input assistance card has been praised highly both at home and abroad. Following Bangladesh example, Indian government has also taken an initiative to introduce agricultural input assistance card. In 35 districts, we have arranged to supply tractors, power tillers, harvesters and other agricultural equipment at 25% subsidised prices. Under the agriculture rehabilitation program, we continue to supply seeds and fertilisers to the farmers free of cost. As part of this program, with a view to producing ‘Ufshi Aush and Bona Aush’ (Nerica), we have distributed free seeds and fertilisers to as many as 3,32,500 farmers in FY 2012-13 at the cost of Tk43 crore. As a result, an additional 1.11 lakh metric ton paddy will be produced this fiscal, Inshallah.
60. We have provided a total of around Tk23,000 crore as agriculture subsidy for the development of agriculture sector in the past four fiscal years. In the budget of current FY 2012-13, we have allocated Tk9,500 crore for agriculture subsidy, which has been increased to Tk12,000 crore in the revised budget. In line with this, for FY 2013-14, I propose to allocate Tk9,000 crore as agriculture subsidy. In FY 2012-13, a total of Tk10,206 crore has been disbursed as agricultural credit till March 2013, which is 72.2% of the target. The targets of distributing agricultural credit for FY 2012-13 and FY 2013-14 are Tk14,130 crore and Tk14, 595 crore respectively.
61. We have dedicated all possible efforts to meet the increasing demand of food by emphasising innovation of new varieties of paddy and wheat and widening the area of cultivable land. We have also strengthened the agricultural research activities. In my previous budget speech, I mentioned in detail the other innovative steps we have taken in the agriculture sector including introduction of agriculture insurance, formation of agriculture marketing group and agriculture club and introduction of beet-sugar cultivation as a substitute of sugar. In addition, I mentioned the formulation of national agricultural policy and invention of high yielding varieties of jute. These steps have further strengthened the agriculture sector.
62. I propose to allocate Tk12,275.98 crore for FY 2013-14, development and non-development budgets combined, for the Ministry of Agriculture.
(3) Human Resources Development
Madam Speaker
85. We all appreciate the fact that a healthy, educated, efficient and conscious population is a pre-requisite for sustainable development of a country. Optimum development of human resources, therefore, had been an area of special attention for us over the last four years. Considering the great importance of this sector, I propose an allocation of Tk43,615 crore which will constitute 19.60% of the total GDP.
Overall Education Sector
86. Education is one of the fundamental rights of citizens and the main driver of realising the goals of Vision 2021. Considering the great importance of education we are unflinchingly committed to enhance the quality of education and also to create opportunity for higher education.
87. I have tried to give you an idea about our achievements, so far, in the development and expansion of education and how these achievements have been acclaimed by the global community. This is for the first time that we have hunted best talents by organising a program called creative talent hunting with great enthusiasm across the country. It was a big challenge to encourage originality in thinking by setting creative questions for the students. Thanks to the earnest support of the students and their guardians, we have met the challenge successfully.
88. We have also taken care to make the environment of educational institutions more congenial for learning. For this, we have improved infrastructure and made other facilities available to ensure better education. Projects are underway to improve infrastructural facilities of over 5,500 secondary schools, 1,000 madrasas and 1,500 colleges. Construction of new academic buildings for 2,719 secondary schools and 125 madrasas has been completed. Construction and other physical infrastructure work are going on at a rapid pace in more than 1,000 secondary schools, 325 madrasas and 600 colleges. We hope to start construction work in the remaining institutions soon. In my previous budget speech, I announced to transform 306 schools into model schools in as many upazilas, where there is no government high school, in an attempt to reduce the rural-urban divide in education. Construction and other work have already been completed in 19 schools. Besides, Upazila ICT Training and Resource Centers have been established. We have made necessary arrangements to supply one laptop and one multimedia with internet facility in 20,500 schools.
89. I propose to allocate Tk.13,179.23 crore, development and non-development budgets combined, for the Ministry of Education.
Primary and Mass Education
Madam Speaker
90. We are pledge-bound to eradicate illiteracy by 2014. With this end in view, the primary education curricula has been substantially improvised and updated. The history of liberation war and the life-sketch of the Father of the Nation, Bangabandhu Sheikh Mujibur Rahman have been incorporated in the curriculum. School managing boards, upazila and town committees and other bodies have been reorganised in a bid to bring about qualitative changes in education management. Besides, we have adopted new rules for transfer and posting of government primary school teachers. In addition, a policy on non-formal education has been formulated to eradicate illiteracy.
91. We are implementing the Primary Education Development Program-3 (PEDP-3), in order to expand and improve primary education. Appointment and training of teachers, supply of text books and learning materials will be regulated under this project. Besides, construction of new class rooms, toilets and tube-wells are also being done under this project. Furthermore, 255 primary school-cum-cyclone shelters will be constructed. In the meantime, construction of 59 such structures has been started. We have selected 1,383 villages without primary schools, to establish primary schools there. Moreover, we are establishing Primary Teacher Training Institutes (PTIs) in 12 districts to improve their skills and capacity. The C-in-Ed course has been elevated to Diploma in order to further improve the standard of training.
93. I propose to allocate Tk.11,935.37 crore, development and non-development budgets combined, for the Ministry of Primary and Mass Education.
Health and Family Welfare
98. In the earlier part of my speech I recounted the achievements in the area of medical infrastructure. Here, I would like to mention a few more achievements. A 500 bed general hospital has started operation in Kurmitola, Dhaka. Another 500 bed hospital will start functioning soon in Khilgaon, Dhaka. Furthermore, we have established a 300 bed Institute of Neurosciences at Agargaon, Dhaka.
102. I propose to allocate Tk9,495 crore, development and non-development budgets combined, for the Ministry of Health and Family Planning in FY 2013-14.
(4) Physical Infrastructure
120. The construction of Padma Multipurpose Bridge is one of the prioritised development projects of the present government. I mentioned earlier that the project implementation schedule that we made for the construction of Padma bridge did not match with that of the World Bank. In order to avoid delay in implementation we have initiated the preliminary work with our own funds. I presume that the World Bank or the Canadian Authority will take longer than expected to settle the allegations brought against this deal. We cannot wait for an indefinite period. We expect that ACC will be able to unravel the mystery soon through speedy investigation. In the meantime, work on Janjira Approach Road and river training has begun. The work on establishing service areas at Mawa and Janjira has begun and the purchase proposal for Mawa Approach Road will be approved soon. Let me add that there is only a few firms across the world which are capable of handling the work of a large construction project like the 6.15 km long Padma Multipurpose Bridge together with the task of river training. We are therefore inviting proposals from the pre-qualified contractors. I am confident that we will be able to start the main bridge and river training -related work of the Padma Multipurpose Bridge Project, during the tenure of the present government. We will be using an Indian grant of USD 200 million for this project. I also expect that we will be able to mobilise funding from Islamic Development Bank and from few other development partners. We had no other alternative but to begin the implementation of this project with our own funding arrangements. Apart from the question of expediency, it is important to ensure international competitive bidding for implementation of such a complex project from engineering point of view. I urge upon all the citizens including our diaspora community to come forward and join hands in implementing this grand initiative.
Railways
121. We have drawn out a master plan for Bangladesh Railways with an objective to expand and modernise railway. Under the short, medium and long term programs under this master plan, the long-neglected railway will be revitalised and connected with the regional and international railway network. In a separate publication ‘Development of Railway Communication: Present and Future’ presented before this August House, we have discussed in detail various aspects of this plan. We are taking immediate steps to mobilise support from Asian Development Bank, World Bank, China and India. This plan will be implemented over the next five years. We are proposing a special allocation for the preparatory phase. During the past four years, we have undertaken 50 new and revised projects worth Tk24,000 crore for the expansion and modernisation of railway system. By this time, we have introduced 45 new trains and expanded necessary services in the existing 22 trains.
122. As part of Railway Master Plan, we have taken initiatives to connect our railway network with India, Nepal and Bhutan. At the same time we are finalising our design and study for construction of new railway lines to establish connectivity with the Trans-Asian Railway. Upgrading Dhaka - Chittagong railway corridor a double lane one are underway. Alongside, work for finalising the detailed design and feasibility study for construction of 2nd Bhairab and 2nd Titas Bridge is underway. Besides, feasibility study for the construction of a separate dual gauge rail bridge parallel to the Bangabandhu Bridge is in progress.
123. I propose to allocate Tk18,232.73 crore, development and non-development budgets combined, for the road communication and railway sector in FY 2013-14. This includes a special allocation of Tk.6,852 crore for the Padma Multipurpose Bridge.
Housing and Planned Urbanisation
132. The pace of urbanisation is getting intensified with the acceleration of economic growth. Presently, around one-fourth of our population lives in urban areas. Every passing day witnesses considerable influx of population to the urban areas. Since assumption of office, we have been attaching due importance to the issue of unplanned urbanisation. By this time, Detailed Area Plan (DAP) for Dhaka, Chittagong and Khulna metropolitan cities and Structure Plan for Sylhet and Barisal divisional towns have been prepared. At the same time to encourage private sector land zoning program is underwayand providing soft loan is under active consideration.
133. We are committed to ensure ‘Housing for All’ by 2021. Accordingly, we have started developing around 44,000 plots and constructing 32,000 flats in Dhaka for middle and low income people. Besides, we have started developing four satellite towns surrounding Dhaka to mitigate the continuing pressure of migration to the capital. An MOU has been signed between the governments of Bangladesh and Malaysia to build satellite towns at Dhamrai and Kamrangirchar in Dhaka district. Another project has been approved to construct low-cost flats by using modern technology at Mirpur in Dhaka under public-private-partnership (PPP). In addition, there is a plan to register private real estate companies to promote good governance in housing sector.
Chapter VII
Special Welfare Programs
Poverty Alleviation and Social Safety
153. Now, I am presenting a list of social safety net and poverty reduction programs (and corresponding allocations) that we have taken up to empower the underprivileged:
Considering the miseries of pregnant women in rural areas, to meet the nutrition need of the expectant mothers and their babies, a monthly allowance of Tk350 is being provided to 1,01,200 poor pregnant women all over the country. In the coming fiscal year, I propose to raise the number of beneficiaries by 15 percent.
A monthly allowance of Tk350 is being provided to 77,625 working lactating mothers of 61 district headquarters including Dhaka, Narayangonj and Gazipur garments areas. In the coming fiscal year, I propose to raise the rate of allowance by Tk50 and the number of beneficiaries by 10 percent.
In FY 2012-13, an allocation of Tk891 crore was made as old age allowance to distribute among 24.75 lakh beneficiaries at a monthly rate of Tk300. I propose to widen the beneficiary coverage by 10 percent.
In FY 2012-13, as many as 9.20 lakh widows, divorced and distressed women received monthly allowance at the rate of Tk300. I propose to widen the beneficiary coverage by 10 percent.
In FY 2012-13, under Vulnerable Group Development (VGD) program 30 kg rice or 24 kg wheat per month was provided to around 7 lakh poverty affected and vulnerable rural women to improve their socio-economic status. I propose to continue this program in the next fiscal year.
In FY 2012-13, under Vulnerable Group Feeding (VGF) program, a total of 4 lakh MT food grains was distributed to meet the food demand of hardcore poor. I propose to continue this program in FY 2013-14.
Steps have been taken to mainstream the Hijra, Dalit, Harijon and Bede communities by providing stipend to their children, imparting skill training to adults and involving them in income-generating activities and providing allowance to senior, disabled and insolvent members. I propose to allocate Tk12.30 crore for this purpose in FY 2013-14.
In continuation of previous year, in FY 2012-13, 80 days employment was generated for 7.46 lakh hardcore poor by spending Tk1,200 crore. I propose to allocate Tk1,400 crore to this program in FY 2013-14.
154. In FY 2012-13, we have allocated 4 lakh MT food grains in favor of Food for Work program to generate employment for the rural unemployed along with building rural infrastructure and improvement of rural communication system. I propose to allocate the same quantity of food grains for this program in FY 2013-14. On the other hand, 4 lakh MT food grains has been allocated under rural infrastructure maintenance (TR) program in the current fiscal year to generate employment for the unemployed, develop educational/religious institutions and extend sanitation facilities. I propose to allocate the same quantity of food grains to this program for FY 2013-14. Besides, we are thinking of introducing a voucher scheme in place of distribution of food grains directly. In FY 2012-13, 80,000 MT food grains was allocated for GR, in FY 2013-14 we propose to allocate the same quantity of food grains for this program.
155. Over the last 4 years, we have implemented various innovative programs for alleviating poverty and ensuring rural development. Under ‘One House One Farm’ program, around 11 lakh families from more than 17,000 villages throughout the country have been involved in various economic activities. Steps were taken to encourage them to save. Through these efforts, the amount of their total savings has now reached Tk1,150 crore.
Employment
161. On assumption of office, we took steps to create employment opportunities in an attempt to reduce poverty at a faster pace. Over the past four and a half years, consistent higher growth in agriculture and rural sector has made significant contribution to employment generation. The policy strategies that we adopted for export of skilled and un-skilled manpower abroad have started showing visible outcome. We are having access to new labor markets while receiving the benefit of increased demand in existing ones. Besides, establishment of labor intensive industries and development of SMEs through channeling credits are playing significant role in generating employment. We have been able to remove seasonal unemployment in rural areas by implementing targeted programs for the ultra-poor. I take this opportunity to acknowledge with thanks the contribution of fast growing private sector in creating employment opportunities in the past years. Because of our timely interventions in the last fiscal year, an employment opportunity of 6.12 crore man-months has been created. We have a target to create around 6.24 crore man-months of employment in FY 2013-14. I hope with the collective support from all concerned, we will be able to create new opportunities and areas for employment for the unemployed in future.
162. It has been revealed from demographic analysis that we have immense economic potential. Since the 1980s, the age-dependency ratio gradually declined. In 1972, this ratio was 95% which came down to 55% in 2011. The babies born in the 80s and 90s are now entering into labor market. We can enhance our economic capacity manifold by using this demographic dividend. This calls for skill development of the new labor force. Bearing in mind the existence of this potential, we have already taken a number of steps. We have formulated Skill Development Policy 2011 to create skilled manpower. In order to create skilled manpower in the ICT sector we have taken steps to establish e-Governance ICT Skill Trust Fund. I propose to allocate Tk50 crore for ICT sector development in FY 2013-14.
Expatriate Welfare and Foreign Employment
163. Thanks to our continued efforts, more than 21 lakh workers got employment opportunities abroad from January 2009 to March 2013. Compared to this, only 11 lakh workers went abroad during the tenure of 4-party alliance regime, which is only half of what stands as of now. In 2009, remittance by the migrant workers stood at US$ 10.72 billion. In 2012, it increased to US$ 14.17 billion which is 11% of GDP, six times of foreign aid and 13 times of foreign investment.
164. Currently, about 36,000 Bangladeshi female workers get overseas employment in different professions every year. During the whole tenure of 4-party alliance regime, a total of 29,000 female workers went abroad. During our tenure, so far more than one lakh female workers have got overseas jobs. Hopefully, because of their enhanced skills, overseas demand for Bangladeshi workers is rising day by day.
165. I mentioned earlier that one of the main successes of the present government is the establishment of Expatriate Welfare Bank for the welfare of expatriate workers. By providing ‘Migration Loan’, this newly established Bank has supported a number of migrant workers in getting employment in the Middle Eastern countries including Bahrain and Jordan along with other countries like Malaysia, Singapore, Italy, Mauritius and South Korea.
166. We have taken up a number of programs under the Bureau of Manpower, Employment and Training (BMET) for sending skilled workers to foreign countries. As many as 65,000 workers skilled in different trades pass out every year from 38 Technical Education Centers under BMET. It would be possible to train more than one lakh workers annually once another 35 such centers are established in different districts. I informed this House earlier that this task of strengthening of labor wings or creation of new labor wings in some of the Bangladesh missions have already been taken up to look after the Bangladeshi migrants.
167. Migration management has been digitised on a massive scale. A database network has been established and migrating workers are now being selected from the databank.
Welfare of Freedom Fighters
Madam Speaker
176. We have been attaching special importance on preserving the memories of Liberation War. The construction work of the Independence Mausoleum is at the final stage. We hope we will be able to open it to public soon. For ensuring welfare of the freedom fighters, we have taken up a project for constructing freedom fighters complex buildings in 11 districts and the implementation of this project has already begun in 10 districts.
177. We have continued the programs for providing allowance and ration along with honorarium to the war-wounded veterans and the families of martyred freedom fighters for their welfare. A program for providing overseas medical treatment to the war-wounded veterans is also continuing. From the next fiscal year, we have initiated a program for providing honorarium at a higher rate to the freedom fighters with title of honor. In order to make the freedom fighters and their family members self-reliant, we have continued the credit scheme along with training on various trades under a revolving fund. At the same time, we are providing allowance to 1.5 lakh freedom fighters. According to the estimate of the Ministry of Liberation War Affairs, the number of freedom fighters still alive is 2 lakh. Subject to awarding of certificates, we will provide allowance to additional 50,000 freedom fighters from the next fiscal year. Considering the issue of welfare of the freedom fighters and their dependents, the services provided to them by the government have been expanded. In addition, the length of service of the freedom fighters working in the government has been extended by one year.
178. We are implementing a project for constructing residential and commercial buildings for the welfare of the families of the martyred freedom fighters at Mohammadpur of the capital city. We expect that the project will be completed by the next fiscal year. Besides, a project titled “Construction of Housing for Landless and Insolvent Freedom Fighters” has recently been approved by the ECNEC to provide residential accommodation for the valiant freedom fighters. Simultaneously, we are working on a program to hand-over abandoned properties at 1972 prices to the families of injured and deceased freedom fighters. In addition, we have taken initiatives to build multi-storied buildings on different abandoned properties on a partnership basis with the private sector. Of the total apartments, the government’s share will be allotted to the families of the martyred freedom fighters /injured freedom fighters. In the meantime, a project has been approved for construction of Freedom Fighter Complex Building in every upazila and around Tk30 crore has been allocated for this project in the budget for FY 2013-14.
Chapter VIII
Capital Market
186. I must admit that despite our sincere efforts, the capital market could not be kept stable. However, I want to declare unequivocally that we are firm in our commitment to protect the interest of the small investors and give the capital market a solid institutional foundation through legal reform, managerial excellence and ensuring good governance. In the meantime appropriate steps have been taken by Bangladesh Bank, Merchant Banks and ICB. We have completed the task of amending the ‘Securities and Exchange Commission Act 1990’ and ‘Securities and Exchange Ordinance 1969’. ‘Securities and Exchange Commission (Private Placement of Debt Securities) Rules 2012’ has been framed along with the amendment of the Securities and Exchange Commission (Mutual Fund) Rules 2001. We have also installed surveillance software of international standard. Side by side, we have updated the Corporate Governance Guidelines. From 28 February 2013 onwards, all omnibus accounts have been converted into separate Beneficiary Owners (BO) accounts. A special tribunal has been constituted to dispose of the capital market related cases. We expect to finalise the Financial Reporting Act.
187. Our government wants to build the capital market as a dynamic source of capital. This prompted us to pay due attention to the development of the capital market from the very beginning. In the first year of our current tenure, I shared my proposal for demutualisation with the Dhaka Stock Exchange. They firmly declined my proposal. However, when our capital market collapsed towards the end of 2011, they changed their opinion. In fact, now at their initiative, the demutualisation Act has been passed by the Parliament. I believe that the capital market is a bit stable at the moment. However, let me mention that the purpose for which we wanted reform and consolidate capital market is broadly successful. Between FY 2001-02 to FY 2005-06, a total of Tk430 crore was raised from the capital market through IPOs. Against this, a total of Tk4,280 crore has been raised between 2009 till date. Likewise investment through the issuance of rights share has now been raised from Tk302 crore to Tk5,800 crore. The achievements in our textile sector, particularly in the RMG sub-sector is attributable to the raising of capital from the capital market. I believe that once actions are in place to take forward the demutualisation process, the capital market will become more stable. However, we must remember that capital markets across the world are replete with risks.
Business Environment
188. In order to remove legal hassles from doing business in Bangladesh we have introduced alternative dispute resolution mechanism and incorporated necessary stipulations in income tax, VAT and Customs Acts and started amending the Code of Civil Procedure. A data center has been established in the Supreme Court to introduce automation in the judicial system. Overall custom related activities are being automated for speedy service delivery to the importers and exporters. Besides, I have already informed you about the enactment of the ‘Competition Act 2012’ to ensure healthy competition in trade. Apart from this, we have decided to establish 5 economic zones in various parts of the country within the remit of ‘Economic Zones Act 2010’.
Permanent Pay and Service Commission
189. We significantly enhanced the pay and allowances of the government employees with effect from 2009 following the recommendations of the Pay Commission. At that time, we said that instead of constituting Pay Commission in such a discrete manner, we may constitute a permanent Pay Commission that may recommend salary adjustment commensurate with inflation and also address the issue of salary discrepancies. Constituting another pay commission will be due in the next year. Let me inform this august House, we shall constitute a Permanent Commission next year which will be tasked to provide recommendations to the government from time to time on the issue relating to pay structure. In the next fiscal, we are going to introduce separate pay structure for Bangladesh Bank and the state-owned commercial banks. Such separate pay structure may have to be fixed for other services. The Permanent Commission will also give recommendations on these pay structures.
Revenue Sector
190. In a short while, I will be dwelling upon the revenue proposals. However, what I would like to put at this stage in a nutshell is that following NBR reforms the manpower of this outfit has increased, appropriate logistics has been put in place, revenue growth has been quite impressive and the people at large are being motivated to pay taxes.
New thoughts
210. Before parting, let me share with you my thoughts on three issues. The first one is related to this government’s special initiative on public welfare and of the other two one is the Local Government and the other is Public Administration reform. I believe these two sectors can play a defining role in taking the country forward. We need to think hard and deep on these two sectors to take ourselves where we want to be.
211. In every budget of this government, we tried our best to take some new initiatives. In 2009, we took an initiative to bring an end to the begging profession. In 2010, we made a special allocation of Tk100 crore for the development of our culture; in 2011 we took yet another initiative to establish the National Art Gallery. In 2012, we again made an allocation of Tk100 crore to promote women entrepreneurs. These initiatives though made significant contribution, did not turn out to be quite effective. This time round, I have again made proposals for a number of new initiatives. Against some of the initiatives we have made special allowances, say for instance, for the development of haor areas, we have made an allocation of 50 crore. However, for other initiatives, the allocations have been included in the overall allocations for the Finance Division. Our purpose is to fully implement all these initiatives. The relevant ministries will of course come forward to implement them.
Chapter IX
Revenue Sector
Revenue Mobilisation
218. I have so far presented to this august house the action program relating to the proposed expenditure for FY 2013-2014. While presenting these, I have tried to highlight the impact these expenditure proposals would have on the social and economic development of the country. Now, I shall present the plan and proposals of the coming year relating to revenue income. Before that I want to give an account on the objectives, strategies and achievement of last four years of our tenure. Since assumption of office, we have tried to focus on increasing revenue collection through modernisation and development of the existing tax system and tax culture. When we came to power in 2009, the revenue- GDP ratio was 10.78% and the tax-GDP ratio was 8.98 percent. At present, the revenue-GDP has grown to 12.84% and the tax-GDP ratio to 10.80 percent. In FY 2013-14 the revenue GDP ratio will be 13.5 percent. During our four year tenure, revenue has been doubled and average annual growth of revenue is 24.94 percent.
Future Plans
Madam Speaker
221. With utmost sincerity and integrity the present government is constantly engaged in implementing the promises and aspirations it pledged to the people while assumed office. The present Government is committed to build a happy and prosperous Bangladesh earned through so many sacrifices. This has driven the government to take many initiatives since assumption of office to foster growth of internal resources and balanced development. Remarkable success has been achieved in the fields of expansion and modernisation of tax administration in an effort to build a time-befitting and service-oriented tax administration.
222. We look forward to a bright future beyond the limitations of the present. We want to put in place a vision of taxation system for the days ahead. We have plans to make corporate tax rate more rationalised and time-befitting. Taxpayers have already started reaping the benefits of initiatives taken by the government. We want to continue this journey of success sequentially. We believe that momentum in tax management will be added and the tax department will be able to contribute to achieving economic prosperity alongside exposing itself as a service-oriented organisation if all of these measures taken are implemented.
223. Now I would like to place before this august House our revenue proposals.
Chapter X
Conclusion
Honorable Speaker
250. The life-long dream of the Father of the Nation as articulated in his philosophy was that the people will enjoy freedom and live happily with all amenities of life. In the war-ravaged country, he initiated the glorious phase of fulfilling his dreams with the wider support from his people. But, the mission towards creating a non-communal, democratic and prosperous Bangladesh met with obstacles at the very beginning. Unfortunately, we lost our leader-the Father of the Nation. The fundamental ideology and spirit of our liberation were destroyed. Anti-liberation, violent, fanatic and communal forces were rehabilitated; people lost their rights of participation in running the affairs of the state. Against all odds, the nation remained indomitable. We upheld the legacy of the dream he had left. We have been trying relentlessly to make his dream a reality ever since. Vision 2021 of the grand alliance government is essentially a road-map of building the golden Bengal dreamt by Bangabandhu. Under the leadership of Bangabandhu’s worthy daughter Hon’ble Prime Minister Sheikh Hasina, we, from the first day of our assumption of office, had been exerting all-out efforts to implement this vision. In all budgets, during our tenure, we have channeled resources keeping in view that goal. With participation of the people, we are devoted to establish a happy, prosperous and caring Bangladesh driven by technology. I can firmly say that our sincere efforts have not gone wayward.
251. So far, I have enumerated our commitments and the efforts that we put in to fulfill them. I frankly confess our weaknesses. We do not claim that we have been able to fulfill all our commitments. However, we can say that we have not fallen short of sincerity. Bangladesh now has a strong economic footing. Poverty of the country has declined fast and income inequality also reduced during our tenure. Illiteracy has reduced. Standard of education has improved. Public health is showing improvement. Remarkable progress has been made in the provision of power for promotion of business, commerce and industry and in building infrastructure. Visible development has been made in taking forward the task of establishing Digital Bangladesh driven by improved technology. The recognition of our success has now spread far and wide.
Honorable Speaker
252. In a democratic system, the change of government through popular mandate is an established norm. It is a continuous process. I fervently hope that whoever forms the next government, will carry forward our unfinished tasks for the greater interests of the nation. My sincerest good wishes will always be with them. But, before I conclude, I would like to tell you with a heavy heart that the anti-liberation fundamentalist forces are out to jeopardise all our achievements made so far and thwart the on-going trial against war criminals for which the nation waited so long. Their mindless acts of violence and vandalism have put our hard-earned democracy at peril and cast a shadow of darkness on the economy. Fortunately, we have somehow been able to stem the tide of this anarchy and our future beckons us with all its possibilities.
JOY BANGLA
JOY BANGABANDHU
LONG LIVE BANGLADESH