Finance Minister unveils budget for Fiscal Year 2009-10
Mr Abul Maal Abdul Muhith
Finance Minister Abul Maal Abdul Muhith presents National Budget for the fiscal year 2009-10. The budget for FY 2009-10 has been formulated bearing in mind the need to maintain macroeconomic stability in the context of current global economic meltdown, achieving desired economic growth to fulfill our election pledge and thereby contribute to poverty reduction.
The present government is committed to take timely measurers to attract private investment in the country through PPP. Therefore, I propose to create three new 'expenditure heads' in the FY 2009-10 budget to facilitate new projects under PPP.
- FY 2009-10 challenging for the economy
- In FY 2009- 10, 5.5 percent growth and 6.5 percent inflation estimated
- In FY 2009-10, the total estimated revenue will be Tk.79,461 crore which is 11.6 percent of GDP
- Increase production and distribution of seeds and capacity for preservation and storing
- No divestment of SoEs without securing alternative jobs for the displaced workers
- Basic goals of revenue mobilisation programme
- Sub-prime mortgage debacle triggered global recession
Textile sector policy changed:
The Global Recession impacted our economy in three fronts:
- Export, import and remittance. Except for RMG and domestic textile sector, exports of all other commodities have declined compared to the previous year. The growth of export in RMG and textiles is also going down.
The growth in import is also dwindling. However, remittance flow still holds a strong position. The Government will have to remain focused on tackling the situation arising from influx of expatriate workers returning home after losing their jobs. We have factored this issue in designing our stimulus package so that more effective use of our scarce resources is ensured. While providing incentives we have adjudged the beneficiaries based on objectivity considering the degree in which the recession has harmed them.
The Government provides subsidy to 13 items of export. We have increased export subsidy for three worst affected sectors by 2.5 percent. To this end, there is an increase of allocation of Tk. 450 crore in the revised budget. We have simplified the existing procedures for quicker disbursement of cash subsidy to the beneficiaries. We have provided for presumptive payment of 75 percent of claim and settlement of the rest of the claim after due audit scrutiny.
In the RMG and Textiles sector, there is already a package of incentives in place. This includes:
• bonded warehouse facilities through which the exporters can import fabrics and other raw materials duty free
• duty draw-back facilities which are extended to those who cannot avail bonded warehouse facilities,
• providing 5 percent of the export value to those who use local yarn and fabrics to make their products
• a zero tariff on imports of cotton in the interest of yarn producers