Thursday, June 07, 2007

Budget 07-08

Eyes locked on immediate prioritiesTackling inflation, improving power generation, expanding social safety net get major attention in proposed budgetInam AhmedFinance Adviser Mirza Azizul Islam yesterday proposed a budget for the next fiscal year setting his eyes on the current development priorities--tackling inflation, spending on power and infrastructure, expanding the social safety net programme and supporting the agriculture.
He has prioritised power generation as a thrust action for the next three years and has sequenced the generation as 345MW in the first year, 900MW in the second year and 1,050MW in 2010 by when he aims to bring load shedding to nil.
However, industrialists will not find much to cheer about, except for retaining and increasing the current export subsidy to Tk 1,100 crore. Entrepreneurs will need to go through a more detailed work to understand whether the new harmonisation of duty slabs and supplementary duty and withdrawal of infrastructure development surcharge will gnaw away their protection and competitiveness. The textiles sector, which acts as the backward linkage for the main export sector readymade garment, will face a jolt as zero duty facility for textiles machinery import will be abolished.
Aziz has tried to be transparent in a number of areas. He has clearly shown, for the first time, what the nation buys with the resources mobilised--34.4 percent to be spent on physical infrastructure, 34.3 percent on social infrastructure and 19.3 percent on public administration. He has also internalised Tk 7,523 crore of the liabilities of Bangladesh Petroleum Corporation, which from a macroeconomic point of view was the right thing to do to relieve the nationalised commercial banks from losses.
However, in meeting all these goals, Aziz had to go for an expanded budget for the next fiscal year with the expenditure increasing by 19 percent from the revised expenditure of the current fiscal year. The current year's budget was only 14 percent bigger than the previous year's revised budget.
Such huge expenditure crucially needs bigger revenue collection target and effort too. He plans a 15.82 percent higher revenue collection for the next fiscal year from this year's revised figure. This looks higher if one compares it with the poor revenue collection of this fiscal year, which until now clocked a piffling 9 percent growth. Especially, many would view with scepticism the tax revenue collection increase of 17 percent. But then compared to this year's growth projection--19 percent over the previous year's revised figure--one would tend to say that Aziz was more closer to reality in proposing his revenue collection target.
Sensing the enormity of facing the revenue collection challenge, Aziz has talked about expanding the tax base, strengthening tax collection procedures, transparency and accountability of tax administration and quality management in tax regime.
But a bulk of his financing the budget will come from borrowing--both domestic and foreign. He plans to borrow Tk 19,276 crore from domestic sources, up from Tk 10,031 crore of the current year's revised budget, and Tk 6,305 crore from foreign sources, again up from Tk 5,183 crore of the current revised budget. Such huge domestic borrowing, 2.2 percent of GDP, may pose the risk of crowding out effect on the private sector. The risk would even spike if the revenue collection effort falters, leading to more borrowing.
But the impact of the past borrowing was evident in the proposed non-development expenditure analysis as interest payment is projected to account for 20.5 percent of the outlay from the current year's 17.7 percent.
And his budget deficit target--4.8 percent of GDP--is quite high from this year's 3.3 percent. He may have the feeling that a lack of ADP implementation will automatically bring down the deficit. But if his vow to firm up ADP implementation process works, the macro indicator will remain bloated.
But the other good thing the budget proposes is the cut down on block allocation from 16 percent of this year's total development allocation to 5 percent.
Aziz has set a higher GDP growth of 7 percent for the next year, which will depend on the government's spending capacity, growth of the agriculture and industry. He also hopes his measures will bring down inflation to 6.5 percent next fiscal year.
As part of his anti-inflation measures, Aziz proposes strengthening sales of essentials through BDR-operated markets and import of commodities by the government to stabilise the market. He also plans a more productive agriculture through increased allocation for research.
Aziz has proposed setting up of an SME Foundation with an allocation of Tk 100 crore and another Tk 23 crore for a Trust Fund under Bangladesh Small and Cottage Industries Corporation to give a fillip to the small industrial sector.
The finance adviser has gone quite a way to establish equality in the society. He has increased ADP outlay by 35 percent in Rajshahi, Khulna and Barisal divisions--areas that witness the worst income distribution. Education has received a big boost in his proposed budget with 15.2 percent of development allocation going in that direction with the idea that a better education mass will have better income. A huge number of teachers--15,000--will be recruited to better the teacher-student ratio, 55 lakh primary students will get stipend at the rate of Tk 100 each, classrooms will be built and income generating training will be given to the literate.
In his bid to heavily support the agriculture, Aziz has proposed 23 percent of total allocation to the sector. A Tk 350 crore endowment will help agriculture research and development. More than that, he proposes a Tk 750 crore allocation for diesel subsidy for farmers and Tk 1,500 crore as fertiliser subsidy.
The proposed budget sees an extended form of the current social safety net programmes like VGD, and allowances for the destitute women and a Tk 550 crore employment generation programme for the rural poor.

1 comment:

Anonymous said...


Dear Sir
From 1972 after independent ,Bangladeshi Nationals started to Established Industries investing family resources ,adopting innovative technology as SELF EARNER & to create job for million of unemployed & to achieve economic freedom when everything were damaged and leftover .
Government also start helping these fast growing PRIVATE SECTOR INDUSTRIES with fund received from International Grant / Loan giving Agencies and stated to distributed through different Bank. From 1980 period..
But unfortunately Owner of Industries becomes victims of deep rooted conspiracy & Anti Propaganda .. The Bank Official refrain themselves from ascertaining production capacity of imported machineries and to provide required working capital loan in time extending total non-cooperation, negligence or even were reluctant to receive back their loan money if any Industrial Owner decided to pay back the loan for non-banking activities These have been done willingly to Jeopardize the Government Decision & Policy of Privatizations as well to occupy the mortgaged properties of the Owner of The Industries
In this way Hundreds & Thousand of Industries in Bangladesh have been destroyed by Bank Officials & Policy Maker who are not aware of First Changing Technology of the World even .
Due to Such Conspiracy , Negligence’s , Fraudulent Activities including Non - Banking Activities of Bank Official & Policy Maker, most of the these Industries have became in-operative or closed & have lost their Cash Capital, Expatriate Capabilities. And became helpless victims of such deep rooted conspiracy. Having no Legal Protections and remedies throwing large number of WORKER & STAFFS - JOBLESS who were engaged in these Industries for their livelihood.
In 1992 &1996 the Sick Industries Rehabilitation Cell were formed by GOVERNMENT OF BANGLADESH & have Identified and Registered these Industries as SICK INDUSTRIES declaring not as defaulter but victims of Violation of Contract, Negligence, Fraudulent Activities, Malpractices of Bank Officials including Policy Maker. And due to lack of Accountability at most of the organization of Bangladesh which are no more hidden matter .
The owner of Industries of Bangladesh are deprived of Legal Right due to enactment ARTHA RIN ACT ACT ( Money Landing Act ) on 1989 which were amended several time till 2007 and Bankruptcy Act on 1997 treating the OWNERS OF INDUSTRIES SECTOR as like as SLAVE of Primitive Age.

But these laws are not applicable in Nationalized Sector where Billions of Dollars are invested, an unaccounted till today .
Total outstanding Defaulted Bank Loan are about 60 to 70 % lying with Government Sector / Nationalized Concern
And less then 10 % Bank loan are lying with Small & Medium Size Industries of Private Sector & Bank Official can explain well about the balance of the remaining out standing Loan.


OWNER OF INDUSTRIES OF PRIVATE SECTOR CAN NOT CLAIM ANY COMPENSATION OR SET OFF on the Suit filed by the Bank Official or Loan Giving Agencies FOR VIOLATION OF CONTRACT, NEGLEGIENCES, MALPRACTICES, including fraudulent activities of Bank officials instead of huge loss and damages although Bangladesh is known as DEMOCRATIC COUNTRY and never was a COMMUNIST COUNTRY.
CONDITION OF SICK / DISTRESSED INDUSTRIES are deplorable due to lack of Accountability of Bank Official / Policy Maker & total Indemnity offered to Bank Official / Loan Giving Agencies These have been done to hide out existing high profile Malpractices, Corruption and Fraudulent Activities & Negligence as per opinion of Expert Personals depriving the Owner of Industries from Justice .
Also Common PEOPLE WHO ARE FACING ANOTHER TYPE OF REPRESSIVE LAW UNDER CERTIFICATE CASE for realization of Taxes , Agricultural Loan , including Weaver’s Loan etc.
The Owners of Industries in Bangladesh have no legal right to protect themselves and from the oppression of Bank Official & Policy Maker & Officials which are no more hidden matter rather a part of deep rooted conspiracy till date helping the process of HUMAN TRAFFICKING .
Bank official have given absolute Indemnity for Violation of Contract , Negligence Malpractices & Fraudulent Activities
OWNER OF INDUSTRIES can only file a separate suit for compensation in separate CIVIL COURT CREATING MORE complicacy for life long litigation WITH OF NO RESULT due to restriction to obstruct or resist any order / decree of ARTHA RIN ACT / COURT by any other DECREE OR ORDER OF OTHER COURT or even of by HIGHER COURT. THE RIGHT OF EQUITY OF LAW HAVE COMPLETELY BEEN DENIED TO THE INDUSTRIAL ENTREPRENEUR OF PRIVATE SECTOR IN BANGLADESH

Sections 12, 12 ( khan ) 18 ( 2 ) & (3 ) 19, 20, 21, 34,40, 41, 42, 44, 47 and 50 of ARTHA RIN ACT are directly repressive types violating of ARTICLE NO : 8, 15, 26 and 27 of BANGLADESH CONSTITUTION and self contradictory to the policy of Government to resist Malpractices and Corruption and Privatization programmed ax Mentioned in Industrial Policy adopted time to time having no force of law at all.

Now there are no other alternative way but to draw the kind attention of Concerned Authority Including International Community / Organizations seeking help for JUSTICE and Support to save & protect the OWNER OF SICK OR DISTRESSED INDUSTRIES OF Bangladesh under Private Sector, including their properties from such deep rooted conspiracy and oppressive laws as well to protect the interest of large number of workers, staffs of the Private Sector and also for CHANGE of such oppressive laws to restore Accountability of Bank Official / Loan Giving Agencies including Policy Maker to ensure for National Interest

( A ) - Humble appeal before the Government of Bangladesh to kindly allow Industrial Entrepreneur to claim Set Off or Compensation on suit filed by the Bank or loan Giving Agencies. or allow to Run Compensation Suit Simultaneously with suits file by Bank Officials under ARTHA RIN ACT with equal opportunity and equal right so as to restore total accountability .

(B)- Considering the Heavy loss and Damages of Government Registered and Identified SICK INDUSTRIES of 1992 & 1996 of Private Sector since last 25 years due to Non-Banking Activities of Bank Officials and Policy Maker may kindly be allowed 100 % weaver of all type of Bank loan liabilities to minimize their heavy loss and damages to certain extent

( C )- The system of keeping mortgage of Land & Properties from the Owner of Industries by Bank or any Loan Giving Agencies as Securities are mostly responsible for Malpractices and ever growing Corruption, & Fraudulent Activities in Banking Sector, which are now proven matter and may kindly be completely abolished as a part of reform programs at earliest possible time to ESTABLISH ACCOUNTABILITY and Check Malpractices, Fraudulent Activities which are now growing by large in Banking Sector or in other Loan Giving Agencies upto root Levels

( D ) - All suits of Artha Rin Court may kindly be transferred to Civil Commercial Court providing Equal right for the end of Justice or preferably be stopped unconditionally


The above mentioned Sections 12, 12 ( khan ) 18 ( 2 ) & (3 ) 19, 20, 21, 34,40, 41, 42, 44, 47 and 50 of ARTHA RIN ACT may kindly be abolished immediately to unearth y & check existing Negligence , Malpractices & Fraudulent Activities of Banking Sector.

( E ) – And Section 28 ( Ka ) of BANKING COMPANY of 2001 which explain WRITTEN OFF does not mean Weaver were included just to or misguide the International Community & Bangladesh National so as to serve the interest of the Vested Group & to hide out the above also

( F ) And also take immediate steps to reform or abolished the system of CERTIFICATE CASE Which are nothing but abuse of Law for realizing Government Taxes , Agricultural Loan etc and is one of the worst system of CLONIAL RULE

( G ) - It would be an extreme favors if your good self kindly collect the PRINTED COPIES OF THE ABOVE MENTION LAWS for confirmation of mentioned facts .& to help the Suffering Groups by circulating this appeal among Honorable Member of your Organization and Partner’s Organizations & to Publish in WEBSITES or News Bulletin or News Media, Electronic Media of your territory to bring to the knowledge of Concern Authority including International COMMUNITY OR ORGANIZATIONS working for HUMAN RIGHT & FUNDAMENTAL / Democratic Right of People to prevent legal abuse for immediate help and support to protect the Owner of the Sick Industries / Distressed Industries of Bangladesh and their properties from such OPPRESSIVE LAWS for which they all would be ever grateful as well for change of all types of oppressive laws restoring accountability at all organization of Bangladesh.

********* N.B. the Summery of above mentioned Section of Artha Rin Act at a Glance:

(A)- In section 18 ( 2 ) & ( 3 ) Defendant or Owner of Industries will not be able to claim any set – off or to make counter claim against the Bank or Bank Official nor will be allowed to claim any Compensation by submitting any Suit against Bank ( Plaintiff ) analogously or simultaneously in Artha Rin Court due to violation of contract, fraudulence activities including negligence, malpractices of Bank officials.
(B)- Section 21: Settlement Conference between Borrower and Bank is a misnomer of Law of Arbitration or just to divert the attention of common people in the name arbitration or to make everybody fool .
(C) -As Per Section 19 (6) of Artha Rin Act of 2003 no suits can be declared to be dismissed or discharged for default or above mentioned fault of Bank Official. As per Section 20 regarding any order or proceedings of Artha Rin Act can not be raised to Higher Court or to any Other Superior Authority without paying 50 % of claimed or Decretal Amount if the order is totally misleading or against any law or illegal one even .
(D) - As per Section 34 Defendant or the Owner of Industries in Artha Rin Adalat Case can be put to the Jail for compelling or forcing him to pay the Bank Money without considering the fault or negligence’s of Bank Official without allowing him to proof the matter of violation of contract, fraudulence activities , negligence, malpractices of Bank officials. V- As per section 41 and 42 -The Owner of Industries are not allowed to file any appeal or revision to High Court or Superior Court against any order of Artha Rin Court without paying 50 % of the claimed amount or Decretal amount in advance , But the Bank Official are not require to pay any amount in advance in the Higher Court, allowing A Great Disparity of Law and Justice.
(E) - Under section 47 and 50 , The learned Court under Artha Rin Act of 2003 have been bared to make any exemption of principal loan amount for Violation of Contract , Negligence’s Malpractices, including fraudulent activities or any fault of the bank official uni laterally

(F)- Section 12 ( Kha ) Imposed a bar for filling write petition to Higher Court which are direct violation of human right and constitutional right of the citizen and reflects the negative attitude of Policy Maker and the Law Maker .

Suffering Groups of Owners of Industries of Bangladesh under Private Sectors