Tk 54.8 lakh crore black money generated in 10yrs

Around Tk 88.6 lakh crore of untaxed or black money has been generated in the past 48 years since Bangladesh gained independence, said Bangladesh Economic Association (BEA) yesterday.

Of it, Tk 54.8 lakh crore or around 62 per cent has been generated in the past 10 years alone, that is, since 2010.

"At least 11 national budgets could have been prepared with the total untaxed money generated," said BEA President Prof Abul Barkat at a virtual press conference while proposing an alternative budget for the next fiscal year.

Prof Barkat's budget proposal is of Tk 17,38,716 crore. This was three times bigger than the current budget of Tk 5.86 lakh crore.  

He explained that it was to help the country's economy recover from the damage caused in the Covid-19 fallouts.

Prof Barkat said it was quite a logical proposal capable of reducing social inequality and poverty and increasing tax on rich people, but that it was not possible for the present administration to implement it.

Of the outlay, Tk 16,03,716 was supposed to be generated as revenue from tax and the remaining Tk 1.35 lakh crore to stay as a budget deficit.

Of the tax revenue, 79 per cent was to come from direct tax and the rest 21 per cent indirect tax.

In the current fiscal 2020-21, the national budget's total revenue has been estimated at Tk 3,62,013 crore.

The development and operational allocation ratio of the government's current budget is 38:62 while of the BEA 69:31.

Prof Barkat showed 28 new ways to increase revenue generation amidst the pandemic, including imposing tax on wealth, the super rich and excessive profits generated by business.

The BEA proposal said the highest income of Tk 443,864 lakh crore would be generated from clamping down on excess profit, untaxed money and money laundering.

It proposed allocating Tk 20,2124 crore for education and information technology, Tk 137,124 crore for health sector, Tk 330,900 crore for social safety net and welfare, Tk 226,114 crore for energy and power, Tk 150,700 crore for transport and communication sector.

"In our proposal, there will be a qualitative transformation in the budget allocation structure," said Prof Barkat.

New sectors and sub-sectors have been added to the alternative budget, including a ministry for public transport and another for research and reproduction.

The 10 new divisions are a department of public health protection under the ministry of health and family welfare and a department of veterans affairs and a department for life skills development for poor, rural women under the ministry of social welfare.

Prof Barkat also proposed ceasing allowing whitening of black money and recovering laundered money.