AMA Muhith said budget focuses on resolving energy and power crisis

The next budget focuses on resolving energy and power crisis, finance minister AMA Muhith said on Wednesday.

Power and energy is set to get the most emphasis on Thursday when Muhith proposes the Tk 1320 billion budget for the next fiscal year.

Speaking to journalists at the Secretariat, the finance minister pointed out that the government was facing criticism with dipping popularity just for the energy and power crisis.

“However, even though the focus will fall the most on power and energy, human resource development will get the highest allocation.”

“Then agriculture, and power and energy, and infrastructure will follow in terms of allocations, and in that sequence.” he added.

Muhith is set to table the next budget at 3pm on Thursday.

For the first time in the country, the budget will be placed through a multimedia presentation, the ‘digital’ method as the government prefers to call it.

However, main opposition BNP had earlier declared that they will not be attending Thursday’s proceedings.

Earlier on Monday, in an unprecedented move, BNP chairperson Khaleda Zia presented a shadow budget.

But ruling Awami League termed the move ‘unconstitutional’ and urged the opposition to come to the parliament with their suggestions.

Muhith had earlier said the upcoming budget would be around Tk 1320 billion, which is around 20 percent more than that of the current one.

The upcoming budget targets Tk 920 billion in revenue earnings.

The current fiscal’s amended budget stands at Tk 1,100 billion (16 percent of GDP), along with a revenue target of Tk 794.81 billion (11.5 percent of GDP).

According to a report presented in the parliament, 52.6 percent of the total allocation were spent in the first three quarters of the fiscal, which is 16.9 percent more than that of last year.

Responding to a query regarding the Tk 140 billion estimated revenue earning in the upcoming budget, the finance minister said, “Our revenue earnings are increasing. We will be able to meet our target in the current fiscal. We will emphasise it in future too.”

On Feb 11, the minister said at a programme at the Bangladesh Institute of Administration and Management (BIAM) that the number of income tax payers will have to be increased along with Value Added Tax (VAT) collection.

He detailed that it was necessary to decrease reliance on income from imports and increase revenue collection from own resources.

To do this, the number of income tax payers will have to be increased from 30 lakh to 40 lakh and the number of registered VAT payers increased five times from the current six lakh.

It is widely believed that the next budget will see a sharp rise in income tax and VAT.

He also said on various occasions in the past that budget expenditure will have to be increased for the country’s development.

Fittingly, half of the Tk 200 billion increase of the overall budget outlay will be spent on development next fiscal year.

The National Economic Council has already approved Tk 385 billion of Annual Development Programme (ADP).

The amended ADP in the current year was Tk 285 billion.