DHAKA: Economist and Chairman of Rupali Bank (RB) Dr. Ahmed Al Kabir asserted that the proposed budget, placed in the JS for the fiscal 2014-15 reflects the vision of 2021-2041.
In an exclusive interview with Banglanews the chairman commented this on the proposed budget.
Dr. Kabir said, “I consider the budget from two sides- one is to take steps for the unimplemented schemes of the last fiscal to be executed. Another side is that taking initiatives for implementations of socio-economic visions of 2021-2041.”
Regarding the financial sectors, he told that measures taken to widen the tax-net are important. There is direction in the budget to activate the automation for collecting taxes.
If the automation system is introduced at Chittagong port then tax collection will be easier.
Dr. Kabir informed that of the total deficit of Tk 67,000 crore, Tk 24,000 crore will come from foreign loan, Tk 31,000 crore will be added from bank loan.
Taking loans from banks is a common practice. In every country deficit budget is a common phenomenon. For implementing budget provisions loans are taken from banks. It is not a matter to be scared in regard of taking bank loan.
Of the total Tk 67,000 crore loan, the position of foreign loan is good. It is to be mentioned here that at the very beginning government has managed huge financial cooperation from Japan. The volume is such big that which was not received during last forty years. During last 40 years we got economic aid to the tune of 11 billion dollars whereas we will get 6 billion dollar in the next five years.
Commenting on the proposed budget Dr. Kabir said that the new budget is poor friendly. This budget will help reduce the rate of poverty. In 2005 the rate of poverty was 40 percent which is now 26 percent only.
Another important side of the new budget is service sector. As a poor friendly party Awami League attaches highest importance on service sector.
At present due to government measures there is no ‘monga’ in the northern part of the country. In the new budget provisions much attention has been paid to the poor, destitute, helpless and widow class of the society. Under the present government lot of the common people has changed. Safety net has been widened and 25 percent people has come under the safety network.
Regarding the division of power he told that in the budget provision there is suggestions for reorganizing the local government and its decentralization. It has been mentioned in the budget for separate allocation of revenue of the central government and local government. It also existed in the past. But this time it has increased. Zilla parisahad has been given importance.
Attempts are taken to remove the complications of the ownership of government land. As a part of these attempts the process of automation, digitalization, for maintaining land records have been taken up. 152 upazillas of the country have been brought under the system.
Highest importance has been given to human resource development in the new budget. If implemented the fate of the youth will be changed. Priority has been given to work oriented education. However there is a cautionary measure so that some ill-motivated bureaucrats cannot play foul game with the fund of human resource development.
The new budget has given focus on the communication sector as second priority. The railway sector was neglected since seventies. Padma bridge, metro rail, deep sea port, four lane highway will be built along with other communicational systems. Japan will help us in this sector.
The first challenge of the budget implementation is the bureaucratic tangle. But it will reduce gradually. Generally the major portion of the budget amount is mainly exhausted in May-June period while the rest amount exhaustion takes ten months of the year. Balance of exhausting money will have to be restored.
He suggested for making the project officers as the fund disbursement officer of the projects for speedy implementation of the projects. The project officers must take the responsibility of the implementation process. There should be some sort of reward and punishment for the project officers as there incentives and warning. If these can be done then the budget implementation will be smooth.
In the new budget the GDP has been shown as 7.3 and this excess target is not bad. If the budget provisions are implemented then the target must be achieved. However all must work unitedly.
When asked about the change of government in India he answered that it will have no impact on Bangladesh. India is a vast country so it is their interest to maintain friendly relations with us. Earlier when BJP was in power there was no problem with us. I hope the bilateral relations will be much stronger now. I am optimistic that the Teesta and other bilateral problems will draw more attention this time under the new government in India.
Speaking on the internal political disturbances he told that disturbance hampers the development process so it is not expected.
On the role of the opposition political parties Dr. Ahmed Al Kabir told that they should co-operate with the government. It is not expected to oppose everything for the sake of opposing.
Government and opposition must reach to a consensus for working together for national development. Government should take initiatives to utilize the contribution of the opposition parties.
Regarding banking sectors Rupali Bank chairman Dr. Ahmed Al Kabir said that the state owned banks in our country are very old. Sonali, Janata and Agrani banks are hundred percent government owned while 10 percent of Rupali bank is in the share market and the rest is with the government. It will be not fair to compare the state owned banks with the private banks.
The government banks are making investments in many government projects which are not generally done by the private banks. There are problems and other garbage in the government banks as those are old. It is not possible to bring overnight changes in those banks. However he laid stress on the monitoring and supervision of the central bank.
He said that the budget provision will not create any adverse impact on the share market. The present stock market is very good now. However there should be three types of investment – short term, mid term and long term which will bring good results, he added.
BDST: 1313 HRS, JUNE 15, 2014
