Matia against interest-cut

A senior minister yesterday heavily criticised Finance Minister AMA Muhith for proposing a cut of interest rate on all saving certificates in the proposed budget for 2015-16 fiscal.

Participating in the budget discussion in parliament, Agriculture Minister Matia Chowdhury  argued that the proposal for cutting the interest rate by at least two percent on all saving certificates would directly affect the middle, lower middle-class, elderly people, women, freedom fighters, teachers and different other professionals.

“Besides, tax at source has been imposed on interest from the saving certificates, which is another major blow to millions of families across the country as their incomes will decline sharply,” she observed.

The minister raised the question how the market economy would grow through slashing their incomes. “The consumption will not increase if they don't have money in their hands,” added Matia.

Pointing that there are over 1.5 crore elderly people which is 10 percent of the country's population, the senior minister told the House that the government should stand by them as it is not possible for them to become businessmen at this age.

The minister went on: “If the elderly people go to invest the money through other people, they will be misled.”

She requested Muhith to reconsider the matter as there was nothing wrong to help those people. She also suggested intensifying the government's drive against the loan defaulters.

Matia also advised the government to take more loans from commercial banks as there is sufficient liquidity there.

The minister mentioned that if the government takes an additional loan of Tk 3,000 crore from the banks, the businessmen will face no problem. “The businessmen can take loans from foreign banks now as the central bank is giving them approvals.”