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PM cautions ministries against taking on new development projects

  • Published at 10:55 pm May 12th, 2017
  • Last updated at 11:10 pm May 12th, 2017
PM cautions ministries against taking on new development projects
Prime Minister Sheikh Hasina has said all ministries should avoid taking on any new projects which will not be well received by the public and thus have a negative impact on the upcoming national election. Sources said she made the comment when meeting with Finance Minister AMA Muhith on Thursday evening regarding the budget outline for the next fiscal year. The ministries should rather focus on the proper implementation of ongoing projects, said the prime minister. She further asked Muhith to settle the proposed VAT law conflict with businessmen, including with National Board of Revenue (NBR) Chairman Md Nojibur Rahman. On May 14, the NBR chairman will present next year’s revenue earning targets to the prime minister. According to Ministry of Planning sources, during the presentation, the NBR will also put forward a new proposal regarding the VAT law wherein the VAT rate has been set at 13% instead of the currently proposed 15%. Finance Minister AMA Muhith will place the budget in parliament in July. In the budget outline presented to the prime minister on Thursday, the total amount of the new budget is an estimated Tk400,250 crore, which is 28.2% higher than the current year’s revised budget of Tk317,180 crore. The revenue target for the next fiscal year has been set at Tk271,260 crore, which is 28.86% higher than the current revised target of Tk210,500 crore. The proposed budget also sets NBR’s revenue collection at Tk248,000 crore. The outline also allocates Tk150,000 crore for the Annual Development Programme in the next fiscal year, an amount which is nearly 35.5% more than this year’s Tk119,296 crore. The finance division has also recommended a fiscal deficit against GDP of above 5% for the next fiscal year and predicted next year’s GDP growth to be about 7.5% with an inflation rate of 5.8%.