Political calm key to achieving budget targets

Political stability is a basic need to implement the budget proposed for fiscal 2013-14, Finance Minister AMA Muhith said yesterday.
He is also happy to see the country's political scene calming down in recent times.
“Anarchism is over,” he said, addressing a post-budget discussion organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at Officers' Club.
“They [opposition parties] look flexible in imposing hartals,” the minister said.
Kazi Akram Uddin Ahmed, president of FBCCI, chaired the discussion where Ghulam Hussain, chairman of National Board of Revenue, spoke as a special guest.
In his welcome address, the FBCCI president termed the proposed budget 'business-friendly' and said it met 80 percent of their demands.
However, achieving 7.2 percent growth would be difficult without addressing issues like boosting investment to 30 percent of GDP from 26 percent now and containing high bank interest rates, Ahmed said.
The FBCCI president also demanded cancelling black money amnesty in real estate. Rather, he said, the facility should be given to the capital market, industries and other productive sectors for the sake of economic growth.
Muhith refuted the allegation that the proposed budget, including the revenue target, is ambitious and would be difficult to implement. He claimed the Awami League is a people's party and it always proposes an ambitious budget for the sake of the people.
“Revenue collection has almost doubled in four years. So, 21 percent growth set for the new budget is quite achievable.”
But one thing -- the political climate -- will matter the most to implement the budget, he added.
Responding to demands by businesses, the minister hinted that he might consider reduction of the supplementary duty on imported biscuits in the budget. The proposed VAT on plastic and furniture might also be considered, he said.
Hussain of NBR urged the political parties to help the revenue department and business community work free from any pressure and anarchism.
“Please ensure a business and tax-friendly environment and we'll give you [government] Tk 150,000 crore in tax revenue instead of the Tk 136,000 crore target set in the proposed budget,” Hussain added.
According to the NBR chairman, the proposed budget, especially the revenue target, is quite achievable provided that businesses get a congenial environment.