Government wants to loot billions out of economy through FY 2017-18 budget, Khaleda

[idune]

Government wants to loot billions out of economy through FY 2017-18 budget, says Khaleda

Published: 2017-06-01 21:41:09.0 BdST Updated: 2017-06-01 21:41:09.0 BdST

BNP Chairperson Khaleda Zia has described the FY2018 budget as “one to pillage the economy,” around an hour after it was presented in parliament.

Finance Minister AMA Muhith unveiled a Tk 4 trillion budget on Thursday.

Of the total expenditure, Tk 2.88 trillion is expected to come from the revenue earnings.

But the budget, which Muhith claimed to be his best among the 11, will have a deficit of Tk 1.12 trillion, which is 5 percent of the GDP.

“This budget, which the finance minister has prepared on the instructions of Hasina (prime minister), has paved the way for the ruling Awami League to loot the economy,” she said.

“You will see that the costs of different projects mentioned in this budget will keep on increasing in future,” said the BNP chief.

The former prime minister came down hard on the government for increasing gas price. The revised rate came into effect the same day.

“In this way, they are exploiting people. Rice has become so costly that poor people are almost starving,” she said while addressing an iftar gathering arranged by Bangladesh Jatiyatabadi Ainjibi Forum, a platform of pro-BNP lawyers.

BNP Secretary General Mirza Fakhrul Islam Alamgir described the budget as “anti people”.

“We believe it is impossible to implement this budget. This (budget) has no connection with the people. You are trying to exploit the people by imposing taxes,” he said at the event.

http://bdnews24.com/politics/2017/0...conomy-through-fy-2017-18-budget-says-khaleda

 

[Homo Sapiens]

Horse fart.

 

[Mage]

What Khaleda is saying is not wrong. But the thing is she and her govt would do same if not worse if they were in power.

 

[idune]

What Khaleda is saying is not wrong. But the thing is she and her govt would do same if not worse if they were in power.

Dont prevent her from power using india and gun barrel use real election and vote. If she does the same raise the hell against her.

 

[Mage]

Don't let her come to power by real election not using india and gun barrel. If she does the same raise the hell against her.

Remember 1996? Khaleda tried to stay in power using gun and force without any real election. But failed. Hasina doing the same. She's just a bit more capable. Why blame Hasina for something Khaleda tried before?

 

[idune]

Remember 1996? Khaleda tried to stay in power using gun and force without any real election. But failed. Hasina doing the same. She's just a bit more capable. Why blame Hasina for something Khaleda tried before?

No she did not, if that was the case caretaker govt system for free and fair election period would not had happened. your justification that Hasina is better being a dictator goes to show awami character. Starting from sheikh mujib your political godfather who established one party rule using BAKSAL.

 

[Mage]

No she did not, if that was the case caretaker govt system for free and fair election period would not had happened. your justification that Hasina is better being a dictator goes to show awami character. Starting from sheikh mujib your political godfather who established one party rule using BAKSAL.

Autocracy is better than democracy for a poor country. Just compare India(democracy) with China(Dictatorship). They started around the same time in similar positions. Now look at them.


Also look at Singapore, South Korea, Malaysia. A change in govt is the worst possible thing that can happen to Bangladesh now.

And Khaleda did try to say in power by arranging an election without caretaker govt. Which she won. But couldn't cling to power as AL and their partner at that time Holy Jamaati Islami raised hell against her.

What goes around comes around.

 

[idune]

Autocracy is better than democracy for a poor country. Just compare India(democracy) with China(Dictatorship). They started around the same time in similar positions. Now look at them.

Once you can not push awami lie anyfurther, you start justifying autocracy. What a fine example of awami league character.

 

[Mage]

Once you can not push awami lie anyfurther, you start justifying autocracy. What a fine example of awami league character.

What wrong did I say in my post? Point it out instead of making ambiguous claims.

 

[idune]

Here is picture of awami league rule in Bangladesh. Every essentials, power gas oil price increased 4 to 10 times.
Electricity price went up 10 times even after that people do not get electricity 2-3 hrs at a time.

So what KZ said is not far from reality people are living.

 

[idune]

Budget to hurt ‘middle, lower-middle classes’
CPD sees execution hurdles

FE Report

The tax structure proposed in the new budget would fuel inflation which could have negative impacts on the overall economic growth and investment, a leading policy think tank predicts.

At the same time, the taxation structure would increase the tax burden on the middle- and lower-middle-income groups, according to the Centre for Policy Dialogue (CPD).

"The proposed tax structure outlined in the budget would increase both production cost and living cost in the country," said Debapriya Bhattacharya, Distinguished Fellow of the CPD, at a post-budget press conference in the capital Friday.

"Already, the price of rice is in an upward trajectory while the prices of oil and gas have already increased. At the same time, the exchange rate of Taka is also likely to go downward in the coming months," the leading economist observed to underpin his fear about price spirals.

"Considering all this, there is big possibility of increased inflation in the next fiscal," he said, adding: "This can have a negative impact on the overall growth and investment in the country."

The policy think-tank came up with its views a day after Finance Minister AMA Muhith placed an 'ambitious' Tk 4.0 trillion-plus national budget for the fiscal year 2017-18.

The new budget relies largely on collections under the new VAT law to cover a 35 per cent growth in revenue earnings.

The proposed budget has estimated the inflation to remain stable at 5.5 per cent. However, CPD officials termed this inflation estimate 'questionable'.

And the budget has proposed the introduction of a uniform single VAT rate of 15 per cent for the next three years.

Turning to this provision, Debapriya said, "The Finance Minister did not clearly mention whether the rate will be changed or brought down after three years."

At the same time, he added, no clear implementation plan for enforcing the act has been mentioned and no assessment of additional revenue generation from the implementation of this act has been made public.

Mentioning that supplementary duty has been increased for some major industries, CPD officials noted that although it is expected to generate additional revenue, the measure may increase tax burden on importers while a number of sectors will suffer from higher cost of doing business.

Mr Debapriya was also critical about the excise duty on bank- account balance, which he said would be a disincentive for those using banking channel at a time of falling interest rate on savings.

"We always have called for taxing those who are smuggling their money abroad and not increasing the tax burden on ordinary taxpayers," he told the journalists.

"But, the latest budget would mainly work to increase the tax burden on middle- and lower-middle-income people," the economist added.

He also found the absence of any specific work plan for implementing the annual development plan or the overall budget.

"We agree with the expectations laid out in this budget," the eminent economist said. "But we do not see any specific implementation plan for realising those expectations."

Mr Debapriya observed that it would not be possible to implement this budget without direct involvement of the public representatives.

Currently, he said, parliamentarians or local-government representatives do not have any role to play in the monitoring of project implementation.

"It would be wrong to think that such big budget will get implemented only through public administration and without any true involvement of public representatives," he added.

CPD officials also lamented what they said the absence of any specific guidelines for reforming the banking sector or for rejuvenating the capital market in the latest budget.

"There should have been some specific guidelines in this regard given their central roles in the overall economy," Debapriya said.

CPD researchers also observed that the much-hyped GDP growth is having little impact in terms of employment generation in the country.

"While achieving the growth figures has dominated attention, it has not been able to create more jobs in the economy," Debapriya said, adding: "Job creation has slowed down while unemployment rate remained unchanged."

CPD officials also noted that as per the latest budget, the gross foreign-aid requirement will be around US$ 7.6 billion, which is an almost impossible target given that the record foreign-aid inflow was only US$ 2.7 billion back in the year 2016.

"Normally, it takes four years for the government to spend such amount of foreign aid money," Mr Debapriya said.

The policy think tank also pointed out a gradual concentration of ADP allocations on certain sectors while relatively moderate rise in allocations for health and education.

"Top five sectors, including transport and power, have received 69.1 per cent of total ADP allocations while there has been moderate rise in primary, secondary and mass education as well as health and family welfare," Mr Debapriya said.

With regard to the provision that allows the investment of undisclosed money -- commonly called black money -- CPD officials said the inclusion of such provision in the ordinance is morally unethical for honest taxpayers and might encourage people to evade tax.

"The need for a predictable legal framework including a new law on undisclosed money and 'benami' property is tough now," said Mr Debapriya in his extensive observations on the new budget.

Another Distinguished Fellow of the CPD, Mustafizur Rahman, said implementation of the budget would depend largely on enhancing government's institutional capacity.

Executive Director of CPD Fahmida Khatun and Research Director Khondaker Golam Moazzem also spoke on the occasion.

http://www.thefinancialexpress-bd.com/2017/06/03/72525/Budget-to-hurt-middle,-lower-middle-classes

 

[Nilgiri]

Horse fart.

Welcome back buddy.

 

[idune]

decline in Bangladesh banking sector because of billions of dollars looting by ruling awami league regime.

 

[Banglar Bir]

03:43 PM, June 03, 2017 / LAST MODIFIED: 04:15 PM, June 03, 2017
Budget big beautiful balloon: Moudud

Star Online Report

Despite being huge in size, the budget will bring no good for the common people, BNP standing committee member Moudud Ahmed said today.

“There is a huge tax burden on people in the budget,” Moudud said at a discussion organised by Bangladesh Youth Forum at National Press Club.
The budget is like a “big beautiful balloon”, striking from outside, but essentially empty on the inside, he said.

Read More: Beneath The Shine
The BNP leader said the budget proposed for fiscal year 2017-18 will only serve the high income group. When the size of the budget is big, the option for corruption also increases, he added.
Moudud said, “It is a big question whether the unelected government has any right to place such a budget.”

Mentioning that the budget allocates more in the non-development sector than the development sector, the former law minister said this budget could not be a people’s budget. “There is a deficit of Tk 1, 12,000 crore in the budget.”

Criticizing the excise duty on bank accounts, Moudud said, “In last two years around Tk 34,000 crore was smuggled abroad. In such a situation, imposing excise duty on bank accounts will discourage people from depositing money in banks. The government is inspiring people to smuggle money abroad through this. It is a suicidal proposal.”

He said there is no specific guideline for curbing corruption which is a big hole in the budget.
Finance Minister AMA Muhith on Thursday unveiled a total national budget of Tk 4,00,266 crore for the fiscal year 2017-18.

http://www.thedailystar.net/politic...m_medium=newsurl&utm_term=all&utm_content=all

 

[Banglar Bir]

Who is this budget for?
M Zakir Hossain Khan
A broken budget hurts all /BIGSTOCK
The proposed budget is in desperate need of direction
“No taxation without representation” is the key principle on the imposition of any tax upon citizens — and is the guiding principle of Bangladesh at present.

The absence of an effective opposition has given scope to the treasury bench to give priority on political mileage in the proposed budget of Tk4,00,266 crore for fiscal year 2017-18, targeting the upcoming parliamentary election.

One of the catchier economic indicators, GDP growth, has been projected to rise to 7.4% in the next fiscal year with great aspiration, but specific measures to ensure an investment-friendly environment were absent in the proposed budget.

The proposed reduced corporate tax may increase the potential capital, but investment of that capital depends not only on the tax rate, but also the trust of investors. Moreover, another engine of growth, RMG exports, is facing severe structural problems, including the volatility of exchange rates and the risk of protectionism by the US, a major export destination.

To fight climate change, Tk100cr was allocated to the BCCTF, while also implementing the “Inclusive Budgeting and Financing for Climate Resilience” along with the 1% corporate tax rebate for green RMGs.

VAT woes
The proposed imposition of a 15% VAT on consumable goods would also affect GDP growth by lowering overall public spending or consumption. That’s why there is credible doubt over the “manufacturing” of GDP growth.

In the proposed budget, it has been claimed that due to the sharp rise of the retail price of gasoline and other energy-related products, CPI inflation in developed countries is likely to rise to 2% in 2017 compared to 0.8%.

There is also the possibility of increasing short-term and long-term interest rates worldwide due to upward pressure on inflation, growth of aggregate demand, and the adoption of contractionary monetary policies by the US.

It is surprising that in the proposed budget, the government has planned to inject tax-payer money worth Tk2,000cr for loss-making state banks to meet their enormous capital shortfalls.

As long as the unabated graft of tax-payer money from public banks and the alarming rise of project expenditures remain dismal, more and more loans for infrastructure will be embezzled and the potential of productive investment would be lukewarm.

Due to poor income tax collection, the overall tax-GDP ratio stands at only around 9%, one of the lowest in the world

Embezzling incentives
The budget deficit is projected to be 28%, or over Tk1.12 lakh crore of the total budget or 5% of the GDP.

That ambitious plan doesn’t reflect the implementation capacity of the government. Moreover, half of the foreign finance will come from institutional lenders, but the rest will come from non-conventional sources, which is always expensive if it comes as supplier credit for the projects, since the economic returns would be weaker.

Domestic sources will provide Tk60,352cr, of which 47% (Tk 28,203cr) will come from the banking sector and the remaining Tk32,149cr from savings certificates and other non-banking sources.

This will create immense pressure on tax revenue collection and bigger bank borrowing, of course.

Furthermore, the government is set to increase its subsidy expenditure by 17.30% from the current year to Tk 27,954cr in fiscal 2017-18, mainly to supply rice at low prices to the poor. However, given the nature of local government representatives, proper targeting is not ensured, and hoarding is still a problem, so that entire amount stands to be pocketed by party loyalists.

Due to poor income tax collection, the overall tax-GDP ratio stands at only around 9%, one of the lowest in the world. While the laundering of taxable income from both legal and illegal sources are increasing significantly.

Bridging the gap
Though millionaires dodging taxes is the norm, to enhance income tax collection, the government is yet to consider bringing them into the tax net. To reduce such gaps, overt dependency on indirect tax and imposition of supplementary duty on small bank deposits is inequitable, and completely anti-poor, to say the least.

Currently, VAT rates ranging from 1.5% to 10% are applicable to more than 80 products. With the 15% flat VAT, especially on electricity, paper, biscuits, fashion houses, furniture, etc the disposable income of the middle class will be squeezed further, adversely impacting their quality of life.

Moreover, since 80% of the suppliers of local fashion houses are weavers who don’t have VAT registration and usually don’t keep records, they will not be able to claim rebate from NBR.

It is important to note that, in the proposed budget, the agriculture subsidy was revised downwards, while thousands of Haor area farmers are drowning with the “Dadon/Mahajan” loans.

On the other hand, in the name of public order and security, the government has significantly increased allocation to law enforcement, by Tk2,125cr, or 10.25%, more than the revised budget of 2016-17.

Last but not the least, allocation for communication infrastructure development has seen a sharp rise of 42.55% or over Tk47,500cr.

Indeed, the proposed budget has not been able to place the obvious economic and governance reforms needed to curb the overall breakdown of our financial sectors, especially the ceaseless looting from the banking sector as well as the share market.

It does nothing to regain the trust of investors and boost both foreign as well domestic investment.

M Zakir Hossain Khan is a climate finance governance analyst.

http://www.dhakatribune.com/opinion/op-ed/2017/06/03/who-is-this-budget-for/