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Bdnews24.com Finance adviser AB Mirza Azizul Islam Tuesday said the proposed budget was investment-friendly as it had been "crafted for poverty reduction". At a customary post-budget press briefing at the National Economic Council Tuesday, the adviser said the budget for FY 2008-09 allocated Tk 58,255 crore for poverty alleviation.
"It accounts for 58.3 percent of the total budget and 9.5 percent of GDP," he added.
Under the social safety net, the adviser said, Tk 16,932 crore has been allocated while another Tk 2,000 crore set aside for a new programme, "100 days employment generation" to create jobs for 20 lakh unemployed poor for at least 100 days.
The region-wise tax holidays and an overhaul of the duty structure have come in the budget in a bid to facilitate investments and create jobs, he said.
"Other than these, steps to promote SMEs, support agro-based industries and continue cash incentive to the export sector also came in the budget," said Mirza Aziz.
Asked whether the pro-people budget was in a bid to assume power in the next election as had happened with the political governments, the adviser made it clear he had no intention to run in the polls.
"No intentions were behind preparing this budget. I considered the current factors in the international and national arenas while preparing the budget."
Mirza Aziz said the budget was prepared considering the fact that an elected government would take over power after a free and fair election in December.
"No other factors were taken into account."
The adviser said they had considered the soaring prices of fuel and food grains in the international market and assumed that the country would not face any natural calamity; economic growth would be at 6.5 percent and inflation would be contained at 9 percent.
"We also assumed prices of fuel, fertliser and food grains would not witness any hike internationally and export earnings and remittances would maintain the growth," the adviser added.
On huge bank borrowings to narrow the deficit, he said the government had borrowed a hefty amount from the banking sector this year, but it did not affect the private sector negatively.
"In 11 months of the current fiscal year, private sector credit inflow has increased by 23 percent compared to the same period of the last fiscal," he added.
About the smaller size of the annual development programme, the adviser said history showed ADP had never been implemented totally.
In a reaction to the CPD's statement that the country's local government infrastructure was not strong enough to execute the Tk 16,932 crore social safety net programmes, Mirza Aziz said he did not feel that way.
"It is true that there are problems in our local government infrastructure. But they will fade away once local government polls are held," he added.
Asked whether the opportunity to legalise undisclosed incomes was unethical in the wake of the government anticorruption drive, the adviser said the new budget kept the provision by imposing an additional 7 percent penalty charge on taxpayers.
"It is all about legal income. There is no chance to legalise illegal income or black money."
According to the proposed budget, inflation would be at 9 percent.
Asked whether such an inflation rate was tolerable in the context of Bangladesh, Mirza Aziz said he agreed it was beyond the country's tolerance level.
"No-one would be happier than me if it were possible to cut the rate of inflation down to 5 to 6 percent. But the reality is, it is impossible."
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