As in 1986, when martial law was in force, this year's budget has been presented to the nation directly. Constitutional experts may consider this arrangement ideal. Because of the provision for ordinance making power under Article 93 of the Constitution there should not be any problem in authorisation of the budget.

As per said provision, this budget will have to be placed before the next parliament when it starts functioning under the newly elected government. We must remember that the aim of this non-political government is only to hold a peaceful, free, fair and credible election. Thus, we do not have much scope for discussing any controversial points.

Among the positive points of this budget the following appear to be the major ones:

• It has given due importance to sectors like agriculture, energy and power, health, human resource development, bond market development, infrastructure and rural development.
• It has abolished the provision for whitening black money. This was long overdue. Our previous government could never sustain pressure against abolition.
• Continuation of benefit of duty-free import of essential commodities.
• Strong support for firm sub-sector. Introduction of subsidy of Tk.750 crore and increase of subsidy for fertiliser from Tk. 1,100 crore to Tk. 1,500 crore is certainly a good proposal.
• Efforts for improving transparency in budget accounting.
• Shouldering of liabilities of Bangladesh Petroleum Corporation (BPC) to establish fiscal discipline.
• Widening of social protection and social safety net.
• Seeking feedback from individuals and organisations regarding project implementation.
• Reintroduction of judicial members in the Taxes Appellate Tribunal to instill confidence among tax payers. As such, references to the High Court will be reduced substantially.
• Exempting income generated from zero coupon bonds from income tax.
• Exemption of treasury bond issued by the government from collection of all upfront and advance tax.
• Continuation of export subsidy to agro-based industries.
• More or less a pro-poor budget.

Among the main negative points are:

• Too much reliance on foreign assistance. This may increase the possibility for interference of donors in our planning and other internal matters. Such a situation is certainly not desirable.
• Increase in non-development expenditure.
• Imposition of custom duty on textile machinery, computer and computer accessories, inadequate fund for SME Foundation, indiscriminate withdrawal of IDSC on import of consumer goods.
• Huge expansion of indirect taxes may hit the citizens.
• Creation of new jobs, the number has not been specified; thus its impact cannot be measured properly.
• Setting goals without the mechanism to implement relevant policies;
• Projection of bigger deficit financing from domestic resources requiring the government to spend more on interest payment and debt servicing.
• Mismatch between the growth of public expenditure (28.8%) and much lower growth of revenue earning (15.8%). A more realistic approach could be considered.
• Marginalisation of development expenditure (30.4% of total public expenditure) may affect desired growth.
• Raising of ceiling of tax exemption from Tk.1.2 lakhs to Tk. 1.5 lakhs will result in substantial loss of revenue earning.

The budget appears to be too ambitious. The assumptions made appear to be difficult to realize. It is doubtful whether the rate of inflation can be reduced or controlled. The fact is that a good budget from a non-accountable government cannot be expected. However, this government must adjust the import-biased policy to the greatest extent possible.

The writer is a former joint secretary.