Budget implementation a major challenge

Finance Minister AMA Muhith speaks at the post-budget press conference at the NEC auditorium in the city yesterday.Photo: STARStaff Correspondent

Finance Minister AMA Muhith yesterday said implementation of the budget is a much bigger challenge than mobilisation of resources.

At a post-budget press briefing, he also noted that collection of revenues is easier than their proper utilisation.

The previous day, he unveiled the national budget for fiscal year 2009-10, drawing a sharply mixed reaction.

The most contentious of the issues appears to be the money-whitening provision.

Faced with a barrage of questions on it, Muhith said from a moral point of view he still opposes the policy providing for the opportunity to legalise black money.

Even so, his government has proposed allowing money-whitening mainly to boost investment and employment generation.

He said he had spoken of a lot of good things in the budget speech. After June 30, he and his colleagues will have to start working to translate those into action.

Ensuring the use of resources allocated for non-development activities is no less difficult than implementing the development programmes, he continued.

"While drawing up the budget, we knew its execution was going to pose a huge challenge."

Agriculture Minister Matia Chowdhury, Planning Minister AK Khandker and Information Minister Abul Kalam Azad were among those present at the briefing at the auditorium of National Economic Council (NEC).

The finance minister said in his budget speech he mistakenly mentioned that GDP growth in the next fiscal year would be 5.5 percent. Actually, the growth would range between 5.5 and 6 percent.

Queried how they would go about the task ahead, he said they would first identify the areas with big expenditure and then start supervising the allocation of funds.

Besides, the planning wing at every ministry will be strengthened to facilitate the implementation.

However, he added, more important is that everyone including politicians, lawmakers and those in administration work in unison.

On availability of exclusive budget information beforehand, he said he himself is to be blamed for some plans coming out in the open.

On a number of occasions, he spoke in the media about various aspects of the budget, and the feedback he gained helped formulate the financial plan.

He said he had talked to leaders of trade bodies and professional groups, but never to any particular individual. And there was no question of favouring any individual or group on purpose.

Muhith said a note that he had written to the finance secretary ended up in the newspapers within 15 days. “Some peons might have leaked that for money.”

He said the finance secretary and the NBR chairman have been assigned to probe the leaks.

In future, access to the work of those involved in budget formulation will be highly restricted.

Asked if the Tk 5,000-crore allocation is enough to tackle the fallout from the global recession, the finance minister said the government considers the next six months a crisis period. It will keep watching the situation, and if necessary more steps will be taken.

Replying to another query, he said the home ministry has been given Tk 5,254 crore under the mid-term budgetary framework and part of the allocation would be spent to reform Bangladesh Rifles.

The finance minister said the common people would not have to shoulder the burden of hiked taxes as those apply mostly to luxury items. This is already borne out by prices of essentials not marking any rise after presentation of the budget.

Both Muhith and Matia said recipients of benefits under the safety net programmes would not be picked on political consideration. They would rather be selected on the basis of the voter list and by the local government representatives.

Matia said the prime minister has already announced the allocations for the agriculture sector would be increased if necessary.

Communications Minister Syed Abul Hossain said his ministry would implement a number of projects under the public-private partnership initiative.

Dr Moshiur Rahman, prime minister's finance and planning adviser, said the quality of investment would improve and yields too would be higher due to participation of the private sector.