Foreign Investors’ Chamber of Commerce and Industry (FICCI) has expressed concern about the reduced allocation for the key mega projects in the budget saying the move will make implementation more time-consuming and raise the total cost of the projects.

“We feel instead of reducing the allocation in mega-projects, the government could concentrate on enhancing the quality of spending, which could bring further efficiency as well as generate employment,” FICCI said in a reaction to the budget speech of finance minister AHM Mustafa Kamal.

The FICCI also expressed concern about bridging the deficit from banking sources saying that it may tighten the liquidity situation, says a press release.

The chamber feels that the GDP growth target of 7.5 per cent is achievable provided that the among others GDP- Investment ratio increases to the expected level.

The chamber appreciated the government’s initiative to increase the budget allocation in the health, education, and agriculture, food & fisheries sector.

Lauding the highest allocation to the social security safety net, the FICCI urged the government to ensure transparency, accountability, and enhancement of capacity of the implementing authorities.

They also welcomed corporate tax reduction, tax deduction at source and increase of the limit for perquisite from Tk 550,000 to Tk 1 million.

The FICCI is the apex chamber of multinational companies doing business in Bangladesh. FICCI is affiliated with the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) as an ‘A’ class chamber, the press release adds.