FBCCI: Reduce pressure on banking sector to meet budget deficit

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has urged the government not to pressure the banking sector to meet its projected budget deficit in the next fiscal year.

The federation also called the proposed budget for the 2019-20 fiscal year "business-friendly."

"We thank Prime Minister Sheikh Hasina and Finance Minister AHM Mustafa Kamal for proposing such a business-friendly budget," FBCCI President Sheikh Fazle Fahim said at a press briefing held at the Federation Bhaban in Motijheel, Dhaka, on Saturday. 

The government has set a higher borrowing target from banks for FY2019-20, in order to finance the projected budget deficit. 

Instead of depending so much on the banking sector, the budget deficit can be financed by utilizing other sources, such as: foreign remittances, infrastructure funds, bonds, and others, Fahim said.

The FBCCI president welcomed the budget's proposed scheme of whitening black money. 

"We can see positive things in the budget," he said. 

Replying to a query about the banking sector, Fahim said if the government takes loans from banks, the country's entire banking sector will be impacted.

"We urge the government and authorities concerned not to hassle businesses during the implementation of the new VAT law," he said. "We have no discord with NBR."