The next fiscal year budget speech may include steps to establish good governance in the country’s banking sector, said Finance Minister AMA Muhith.
In an interview with the Dhaka Tribune last week, he also said the government will allocate fund in the fiscal for the state-owned banks to convert their goodwill to capital.
The total fund is likely to be Tk5,000 crore as set by the development partners.
Muhith said the state banks have faced huge provision shortfall due to large credit scams in the recent years.
About the state-owned BASIC Bank, finance minister thinks the management of the bank “did a very bad thing.”
“We will take action against the corrupt officials, whoever they are, there will be political consideration.”
Besides, finance minister alleged that the banks disclosed less profit than they actually made to dodge taxes.
During the interview, AMA Muhith answered to different many other questions which include investment, social safety net, district budget, pension schemes for private employees and reforms to monthly pay order of private educational institutions.
He hoped large amounts of foreign investment might come to the country in the upcoming fiscal as some infrastructural bottlenecks have been removed.
He said social safety net would increase in the year.
Muhith differed with a present newspaper article of Dr Mirza Azizul Islam in which the former finance adviser of last caretaker government alleged such allocation was decreasing.
“It’s a bogus statement as we have been raising the amounts every year.”
Muhith also claimed that the country’s woman citizens always get maximum benefits from the social safety net programmes.
As more six district budgets will be announced next fiscal, they are expected to help the district administrations implement local development projects more efficiently.
“The district authorities will be able to make better plans as they will have clearer knowledge of the projects,” explained finance minister.
The district administrations can also take new projects like education and fisheries sectors.
Muhith said he would bring reforms to the present MPO system in the next fiscal year.
“Fund for MPO will not only be used for teachers, but also for improving quality of education and construction of educational institutions.”
Besides, Muhith said the government will introduce pension system for private sector setting a rule of thumb in a bid to safeguard the well-being of the retirees. A project will be taken in this regard, he said.
Muhith said the government will enhance earning from the value added tax as earning from the customs declines due to relaxation of import policy under the WTO rules.
“If the government makes the VAT system popular among businessmen, it will reduce the tax evasions.”
About gross domestic product, Muhith believes the growth that has remained hovering around 6% will be better if the administration is decentralised.
“If the local economic authority is given to the local government, there will be more contribution to the country’s GDP.”
He reiterated that there will be no chance of of whitening black money but the money can be legalised paying 10% tax as per law.
