Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Prudence is at play in budgeting now as Finance Adviser Dr Salehuddin Ahmed said Tuesday this government wouldn't implement the next budget by borrowing from banks or printing money.
He also said a very realistic Annual Development Programme (ADP) will be taken in the budget for next fiscal year.
"We won't implement the budget by borrowing from banks or by printing money. We will not undertake big megaprojects by borrowing," he told newsmen after a meeting of the Advisory Council Committee on Government Purchase at Bangladesh secretariat.
Mr Ahmed said the government is in talks with the International Monetary Fund (IMF) and the World Bank on budget-support loans to lessen deficit.
Asked whether the splitting of the National Board of Revenue (NBR) into two divisions will have any impact on revenue collection, the adviser answered in the negative, citing international practice of such bifurcation.
"So far, the revenue collection has increased by 2.0 per cent compared to last year. Not too disappointing, I expect more. At least the collection won't be less than last year's," he said.
Mr Ahmed said in the new ordinance on the NBR the interests of revenue board officials have been protected fully. There is nothing to worry for them.
He said there will be a small division which will look after policy-formation-related issues.
The adviser said international practice is the policy division and the implementation division do not stay together.
In every country they remain separately, because, in the policy division professionals with knowledge on economics, statistics and the country's gross domestic products need to work.
On the other hand, Mr Ahmed said, the employees of implementation division work on implementation of the policies and so they collect revenue.
"If those who are entrusted with the responsibility of implementation also prepare policy, there must be a matter of conflicts of interest," he told the reporters.
The adviser mentions that the new ordinance has been issued after necessary consultation with top officials of the NBR.
The interim government Monday separated the National Board of Revenue into Revenue Policy Division and the Revenue Management Division and issued an ordinance to this effect.
However, the officials of the NBR took exception to the government decision and demanded withdrawal of the ordinance.
Meanwhile, there have been recommendations from global development financiers as well as from different economists for separating the revenue board's functions this way for smooth service delivery and removing alleged venal practices by a section of taxmen.
syful-islam@outlook.com