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Change Your Life! |
Budget to fund social sectors |
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News |
June 14, 2000
Sangsad Bhaban, (UNB) - The general discussion on the proposed budget for fiscal 2000-2001 began in Parliament yesterday (Tuesday) with Deputy Speaker Abdul Hamid in the chair.
A total of five ruling party MPs, including a minister and a state minister, took part in the discussion claiming the budget as welfare oriented and said it would help the business community to stimulate business and industry along with the growing agriculture sector.
Agriculture Minister Begum Matia Chowdhury said the policy followed to formulate the budget was to increase funds for the social sectors.
She said the policy of increasing funds for education and waiving tax on raw materials for local industries, software industry and computer equipment was followed to give a broad foundation for a local industrial base.
Matia said due to prudent policies, the amount of direct tax has increased substantially and would increase further in the coming years.
The rate was 11 per cent during the BNP regime and increased to 14 per cent in the revised budget for fiscal 1999-2000, she said adding “it would be 15.7 per cent in the coming fiscal year.”
She said if the rate of direct tax increases, the revenue earning dependency on import duty would decrease. “The rate of present dependency is about 20 per cent and it would be lowered during the next fiscal year.”
Explaining the prevailing situation in the agriculture sector, the minister said the government was now trying to diversify its agricultural export in the European and Asian markets.
“We’ve introduced five new vegetable products, including potato, in our export basket. Quantity of these exports will increase in future.”
Cautioning the nation about the decline in cultivable land, she urged the donors to invest in reclaiming the emerging land on the south in the Bay of Bengal.
State Minister for Planning Dr Mohiuddin Khan Alamgir said the new budget proposal was prepared in the light of the Fifth Five-Year Plan to combat poverty, set up strong rural infrastructure and increase investment.
Defending the borrowing of TK 3,500 crore from the banking system as proposed in the budget and the rate of GDP at 5.5 per cent, he ridiculed ex-Finance Minister Saifur Rahman for calling the economic growth rate negative.
In support of his contention, Khan cited example from developed countries, including USA, Canada and Japan, and said that borrowing from the banking sector would not affect the growth of economy.
He said the borrowing from the banking system would be spent in productive sectors and for development projects, which would ultimately help bring down the poverty line.
The government has the right and the capability of taking loan from the banking sector and spending it properly, the state minister said.
He said population bellow the poverty line has been brought down to 44 per cent from 50 per cent in 1990. It would further go down to 32 per cent in 2001 following the FFYP and the new budgetary measures.
Analyzing the budgetary proposals, Khan said the new budget has emphasised on rural infrastructure, agriculture, education and health.
Special allocation of Tk 15 crore has been made for giving allowance to the crippled freedom fighters, he told the House.
Mohammad Akhtaruzzaman (AL) said the budget for 2000-2001 is the reflection of the government’s vision to maintain a stable economy by alleviating poverty. He praised the government for giving incentives of Tk 15 crore to the IT sector for flourishing the computer industry.
Earlier, opening the discussion, Prof Panna Kaiser criticised the opposition for “misleading the people through fictitious speeches” without attending the session.
Prof Zannatul Ferdous urged the abstaining opposition MPs to return to Parliament and strengthen parliamentary democracy.
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