The New Nation - Internet Edition

ECONOMIC REPORTER

The proposed budget of 2008-09 is a good one to meet short term targets.

The nation does not expect a long-term target-oriented budget from a caretaker government. So, the proposed budget may be treated as a good one to meet the short-term targets of the nation. Adequate budget allocation for social safety net, women and children welfare, disaster management (climate change) etc are welcome steps. Highest priority has been given to agriculture and rural development, which is also a good sign to make the budget people oriented. Under the present price hike situation of the global food crisis, compared with 'Tsunami' and 'globalization of hunger', the whole world has taken necessary steps to face the challenges of food crisis. But the proposed national budget 2008-09 has not been able to give any good news in this regard. The declaration of the salary increase of the government servants may further increase the price of essentials. This is for the first time the government has held several meetings with different business communities and professional bodies. Almost every body suggested to fix up minimum taxable limit for individual tax payer at more than Tk 2 lakh but the proposed budget has not shown any respect to that suggestion. The government's earnings shall be increased without hurting the common people.

The middle class seems to have been neglected in the proposed budget, whereas the growing middle class is treated as life blood of market economy. The proposed budget 2008-09 has been prepared in a traditional old style ignoring the suggestions of new dynamic changes. The budget has rightly shown sympathy to the regional disparity, but failed to announce any tax and fiscal incentives for encouraging new private investments, which creates employment opportunities. Only a budget allocation of Tk 100 crore for the extreme poverty stricken areas is not enough. This may help the poor people for the time being, but will not bring any positive economic changes. It is well understood that without increasing the production of electricity and gas desired industrialization couldn't be done. The proposed budget has not given any good news in this regard.

Discretionary power of taxmen has been reduced, which is welcome step. The budget has tried to satisfy the business community by reducing corporate tax rate without ensuring transparency of the financial statements of the business houses. Revenue collections cannot be increased with this; rather there is a possibility to be decreased. It is also proposed to increase tax net, but no technique has been declared as to how to increase the tax net. As such, the sufferings of honest tax payers may be increased and the ambitious revenue collection target many not be fulfilled.

It is believed that now is the high time to put the national economy on a strong footing because the present government has no political ambition. The proposed budget has allocated substantial amounts within the ability of the government for poor people, women and children welfare; but there is no effective initiative to develop the economy into the desired level. However, it seems the proposed budget has been prepared with a good intention and the Finance Adviser has been successfully able to identify the major national economic problems. It is time to bring necessary changes in the proposed budget in line with the people's desire and make the budget for the people because the government itself is for the people.