Finance Minister AHM Mustafa Kamal
Budget FY 23: 50 lakh low-income families to get food assistance
Fifty lakh low-income households will get food assistance of 30 kg of rice each month at the rate of Tk15.
The assistance will be given in the lean seasons- September, October and November and March and April, said Finance Minister AHM Mustafa Kamal in his budget speech on Thursday.
The national budget gives priority to enhance food production and supply chain management of food items to keep the domestic commodity market stable, said the minister.
The global food production, procurement, storage and the entire supply chain including agricultural marketing systems faced unprecedented challenges during the COVID-19 pandemic, said the minister.
Also Read: Finance Minister starts unveiling Tk 678,064 cr national budget
Despite the crisis arising from the COVID-19 pandemic, Bangladesh is able to keep the production of agriculture uninterrupted in the country and achieve food and nutrition security thanks to the very timely initiatives of the government, he added.
The government is distributing 5 lakh MT of rice and 5.09 lakh MT of wheat flour in the current fiscal year 2021-2022 and this programme in the FY 2022-23 will continue.
Budget FY23: Kamal sees rising inflation as a major challenge
Finance Minister AHM Mustafa Kamal listed six major challenges including containing inflation and enhancing domestic investment for the fiscal year 2022-2023 as he unveiled the budget in an –audio-visual format fully for the first time on Thursday.
Financing additional subsidy required for the increased price of gas, power and fertilizer in international markets and utilizing funds available through foreign assistance and ensuring timely completion of high priority projects are also listed as the challenges based on discussions, proposals and analysis.
The finance minister said ensuring timely completion of projects in education and health sectors; increasing collection of local Value Added Tax and raising the number of individual tax-payers and maintaining stability in the exchange rate of taka and keeping foreign exchange reserves at a comfortable level are also among the major challenges.
Kamal expressed his optimism that Bangladesh will be able to return to the path of development in the next fiscal year by effectively addressing the adverse situation arising from the Russia-Ukraine conflict.
Also read: Budget FY23: Power and energy receive reduced allocation of Tk. 26,066 crore
While placing the national budget for the fiscal year – 2022-2023 on Thursday, he told parliament that they had brought back the country’s economy into the mainstream by overcoming the Covid-19 pandemic under the dynamic leadership of Prime Minister Sheikh Hasina.
The priority of this year’s budget is to improve the livelihood of people at all levels, continue with uninterrupted economic development and employment generation, and contain inflation in parallel to addressing economic effects originated from COVID-19 and the Russia-Ukraine conflict, said the finance minister.
“The resilience of our economy depends on the strength of bouncing back by the communities combined with bold and courageous leadership,” he said.
Kamal said they have to be very pragmatic in addressing these challenges as any failure to address them properly may destabilize the macroeconomic stability.
“Our major strategy would be to enhance the supply while reducing the growth in demand. Therefore, import-dependent and less important government expenditures will be stopped or reduced,” he said.
Kamal said the pace of implementation of the low-priority projects will be lowered while enhancing the implementation of high and medium priority projects.
He said the sales price of fossil fuel, gas, electricity and chemical fertilizers will be adjusted gradually and on a small scale.
“The automation process regarding tax collection will be expedited with a view to gearing up revenue mobilization activities and VAT and income tax coverage will be expanded. Import of luxury and dispensable goods will be restrained and under/over-invoicing will be cautiously monitored. The exchange rate of Taka against the US dollar will be kept competitive,” Kamal said.
Padma Bridge to lead to unprecedented improvement in communication system: Kamal
Finance Minister AHM Mustafa Kamal has said the dream project Padma Bridge will lead to an unprecedented improvement in the communication system connecting the capital with the southern part of the country.
“As a result of the bold steps taken by Prime Minister Sheikh Hasina, it has been possible to complete the construction work of the 6.15 km long Padma Bridge with the own funds of the government of Bangladesh,” he told Parliament while placing the national budget for the fiscal year – 2022-2023.
Also read: Finance Minister starts unveiling Tk 678,064 cr national budget
The bridge is expected to be opened to traffic on June 25.
With a view to building transport and communication systems that support industry and trade in the country, the government is implementing a number of mega projects, one of which is the Padma Bridge, said the finance minister.
Another project, construction of 3.32 km Bangabandhu Shiekh Mujibur Rahman tunnel under the Karnaphuli River, is about to be completed and the tunnel is expected to be opened to traffic by December 2022, he said.
Finance Minister starts unveiling Tk 678,064 cr national budget
Finance Minister AHM Mustafa Kamal has started unveiling the Tk 678,064 crore national budget for the financial year 2022-2023 with special focus on economic recovery from uncertainties caused by Covid-19 pandemic and the Russia-Ukraine war.
The finance minister began rolling out proposed budget at the Jatiya Sangsad at 3:00 pm on Thursday.
This is the fourth time Mustafa Kamal is presenting the national budget.
This is the country’s 51st budget and the 23rd of the Awami League government in five terms.
Also read: Cabinet approves national budget for FY2022-23
Cabinet approves national budget for FY2022-23
The Cabinet at a special meeting on Thursday approved the proposed national budget for the fiscal year 2022-23.
Prime Minister Sheikh Hasina presided over the meeting held at the cabinet room of the Jatiya Sangsad Bhaban.
Finance Minister AHM Mustafa Kamal and other Cabinet ministers and state ministers concerned attended the meeting.
The finance minister is set to unveil the proposed national budget for the 2022-23 fiscal this afternoon, after the authentication of the budget by the President.
Also read: Gender budget framework needs to be redesigned, say discussants at a pre-budget dialogue
AHM Mustafa Kamal is scheduled to start unveiling his budget of 6.80 lakh crore at the Jatiya Sangsad at 3:00 pm.
Also read:Russia-Ukraine war creates uncertainties: Kamal on upcoming national budget
This is the country’s 51st budget and the 23rd of the Awami League government in five terms.
Bangladesh to unveil budget today
Bangladesh Finance Minister AHM Mustafa Kamal will unveil a Tk 6.80 trillion (Tk 6.80 lakh crore) national budget for the financial year 2022-2023 in Jatiya Sangsad on Thursday.
The size of the budget will be about 15% of the country's gross domestic product (GDP). GDP is the total monetary value of all the finished goods and services made in a country during a financial year.
This is the country’s 51st budget and the 23rd of the Awami League government in five terms. The budget will see special measures of tax exemptions on agriculture, food processing and small sector development, UNB has learnt.
Also read: Gender budget framework needs to be redesigned, say discussants at a pre-budget dialogue
Experts emphasise on having measures to control inflation and stabilise the country's foreign exchange rate, besides steps to ensure food security.
Tajuddin Ahmed presented the first budget as the first finance minister of the post-independence Bangabandhu government in 1972.
Also read:Russia-Ukraine war creates uncertainties: Kamal on upcoming national budget
In the upcoming budget, the target of GDP growth is set at 7.5% and inflation will be pegged at 5.5%.
Russia-Ukraine war creates uncertainties: Kamal on upcoming national budget
Finance Minister AHM Mustafa Kamal has said he faces the pressure of external vulnerabilities in the economy in preparing the national budget for FY2022-23.
"...But only pressure is the uncertainties and external vulnerabilities due to the war (Russia-Ukraine)”, he told reporters while briefing about the outcomes of the Cabinet Committee on Government Purchase (CCGP) on Wednesday.
Also read: Govt mulls amnesty to bring back laundered money: Finance Minister
The National Budget for FY2022-23 is slated to be placed in Parliament on June 9.
He said that after the Covid-19 pandemic when the economy was trying to recover from the shock, the Russia-Ukraine war started which created huge vulnerabilities and uncertainties globally.
“Every country in the world has to face the challenges of the vulnerabilities and they are under pressure”, he said adding that these uncertainties and vulnerabilities will create opportunities as well.
“We don’t war anymore. We want the war to stop immediately”, he said.
Kamal said his main focus in the budget will be recovering the economy from the uncertainties and vulnerabilities. “We’ll try to bring dynamism in the economy”.
Responding to a question on the CPD’s observation that the country’s financial sector is led by a weak leadership, the finance minister said Bangladesh has been the best country in the world in economic management.
Also read: Finance minister directs regulators to boost investment in stock market
“The way we run the economy in a crisis situation, the administrative efficiency we showed, it’s best compared with the other countries”, he claimed.
He, however, refused to disclose the main thrusts of the national budget. “Just wait…You will see when the budget is placed in Parliament”.
He hinted that strengthening the social safety-net programme will get a special focus in the upcoming budget.
NBR works for win-win tax in upcoming budget: Finance Minister
Finance Minister AHM Mustafa Kamal on Tuesday said the government focused on increasing revenue from direct tax to give relief to lower income people from the tax burden.
Under this system those who earn more pay more taxes, he told the 42nd consultant meeting of National Board of Revenue (NBR) ahead of national budget for FY2022-23 at a local hotel.
He assured that no one will be unfairly burdened as NBR is considering a win-win tax rate in the upcoming national budget.
Read: Consider maximum cut in import VAT on edible oil: Cabinet directs NBR
Kamal said the government’s revenue collection increased by 8 times in the last 13 years and the volume of revenue was Tk2.59 lakh crore (Tk2.59 trillion- 1 trillion= 1 lakh crore) in the last FY2020-21.
He said the businesses are contributing to the country’s development including construction of Padma Bridge by providing tax.
The government wants to expand tax net rather than increasing tax rate to force a competitive business environment, he said.
NBR Chairman Abu Hena Md. Rahmatul Muneem, President of the Federation of Bangladesh Chambers of Commerce & Industries (FBCCI) Md. Jasim Uddin, Vice presidents, and different chamber leaders spoke in the function.
VAT on import of edible oil, other commodities withdrawn: Minister
VAT (value added tax) on the import of commodities like sugar, chickpea, and edible oil has been withdrawn, said Finance Minister AHM Mustafa Kamal on Thursday.
He announced this while briefing reporters after two consecutive meetings of the Cabinet Committee on Economic Affairs and Cabinet Committee on Public Purchase.
Read:Two traders fined Tk 1.5 lakh for soyabean oil hoarding in Bagerhat
The minister said VAT on the import of these commodities has been withdrawn as their consumption is higher during the Holy Ramadan. “Considering the Holy Ramadan, we took the decision to withdraw the VAT for a temporary period,” he said.
“The decision has been taken so that prices of the essentials can be kept at a tolerable level,” he added.
He, however, did not give any detail of the product lists from which the VAT has been withdrawn.
Meanwhile, the public relations officer of the Finance Ministry said that 15 per cent tax at production level and 5 per cent tax at retail level have been withdrawn from edible oil.
New export policy: Focus is on providing equal support to all
The new draft export policy 2021-2024 has been approved with a special focus on providing equal policy support to all the export-oriented sectors, said Finance Minister AHM Mustafa Kamal. Mustafa Kamal also said the annual export target has been raised to $80 billion from the existing target of $60 billion.
Read: Now people can afford to pay, claims Finance Minister The minister came up with the information while briefing reporters after two consecutive meetings of the Cabinet Committee on Economic Affairs (CCEA) and the Cabinet Committee on Public Purchase (CCPP) on Wednesday. Kamal presided over the meetings. He said the CCEA approved the new draft export policy against the backdrop of the new reality on the global export market.