Muhith’s record, this govt’s last budget

Finance minister Abul Maal Abdul Muhith will place in parliament today, Thursday, the annual budget for 2018-19, keeping focus on the next general elections to be held later this year.

The minister may raise individual income tax-free limit, reduce corporate tax and make higher allocations for social safety-net programmes - the priorities that are widely considered populist measures.

His priorities areas in the Tk 4.68 trillion budget, as already indicted, include infrastructure, power, education and skill development, investment and jobs creation.

However, the next budget would see a deficit of Tk 1.27 trillion or one fourth of the outlay. The deficit is expected to be financed by foreign aid and borrowing from banks and issuance of savings certificates.

Former finance adviser to the caretaker government AB Mirza Azizul Islam told Prothom Alo that such big budget is not implemented and the government showed lessening capacity in budget implementation over the years.

In 2011-12 fiscal year, 93 per cent of the actual outlay was implemented while the rate would come down to 80 per cent at the end of the current fiscal year, he pointed out.

The finance minister is likely to allocate significant amount to fund the losses made by the state-owned banks due to scams and default loans.

Former deputy governor of the Bangladesh Bank Khondoker Ibrahim Khaled criticised such a move, saying a strong finance minister is required stop spending of public money for banks and bring discipline in the banking sector.

The next budget is the country’s 47th budget -- 19th during any Awami League government.

Muhith is going to set a record of submitting budget for a record 12th time. Last year, he equalled finance minister of the BNP government M Saifur Rahman’s record of placing 11th national budget.

Muhith presented his first ever budget during general Ershad’s martial law and he is the first finance minister to place the national budget for the 10th straight time since 2009.

The finance minister is expected to fix the target of GDP (gross domestic product) growth at 7.8 per cent for the next financial year. The target for the outgoing financial year is 7.28 per cent.

Muhith is scheduled to speak at a post-budget press conference at Osmani Memorial auditorium at 2:30pm on 8 June (Friday), the day after submission of the budget.