Govt trying to make petroleum price adjustment: Muhith
Dhaka, Apr 18 (UNB) – Finance Minister AMA Muhith on Wednesday said that the government is trying to make adjustment in petroleum price fully independent of all political decisions.
“It must increase according to world price which is in practice in India, Sri Lanka, Pakistan, and even in Nepal,” he said during a pre-budget meeting with the representatives of the NGOs held at the Finance Ministry conference room.
Muhith said there is no automatic adjustment of petroleum price only in Bangladesh. “We’re moving towards that but don’t know when we’ll be able to do it,” he added.
On subsidy pressures, the Finance Minister said that it stood above four percent of GDP in the current fiscal year exceeding the target. “In the next year, we’ve a plan to hold it down.”
He said that if steps could have been taken three months earlier, the results could have been different.
Muhith said: “The problem for the populist government is that adjustment of subsidies becomes a serious problem.”
The budget deficit of the current fiscal year may stand at 5.1 percent of the GDP while the target for budget deficit for the next fiscal year is 5 percent, he said.
The Finance Minister said that priorities for the next budget would be as usual on power and energy, human resource development, agriculture, health, and education.
He said the next budget size would witness a growth of 17 percent while the Annual Development Programme (ADP) would amount to Tk 54,000 crore.
Citing weaknesses in foreign aid utilization, he said: “Highest emphasis will be given on utilization of foreign aid as disbursement has not increased compared to commitments.”
On digitization of land records, Muhith said that the government has some plans to move forward on Public-Private-Partnership (PPP) basis involving the Bangladesh Computer Samity and BASIS.
He informed that zoning in 160 upazilas is likely to be started in next 2-3 months.
On the much talked about Padma Bridge project, the Finance Minister iterated that the construction works for the bridge would start from next season. He, however, did not say how the funding of the project would be done.
In the meeting, the NGO representatives suggested the Finance Minister to give more emphasison budget implementation, increase allocation in the education sector including in technical education, widen the income tax net, give attention to the slum dwellers as well as to marginal people, and take appropriate measures for ensuring nutrition for all.
Executive Director of Campaign for Popular Education (CAMPE) Rasheda K Chowdhury, Dr. Jafarullah Chowdhury of Gano Shasthya Kendra, Bangladesh Mahila Parishad president Begum Ayesha Khanam, chair of Refugee and Migratory Movements Research Unit (RMMRU) Dr. Tasnim Arefa Siddiqui, among others, spoke on the occasion.
Senior secretary of Finance Division Dr. Mohammad Tareque, senior secretary of Economic Relations Division (ERD) Iqbal Mahmood, Bank and Financial Institution Division Secretary Shafiqur Rahman Patwari and acting Planning Secretary Bhuiyan Shafiqul Islam were present.
“It must increase according to world price which is in practice in India, Sri Lanka, Pakistan, and even in Nepal,” he said during a pre-budget meeting with the representatives of the NGOs held at the Finance Ministry conference room.
Muhith said there is no automatic adjustment of petroleum price only in Bangladesh. “We’re moving towards that but don’t know when we’ll be able to do it,” he added.
On subsidy pressures, the Finance Minister said that it stood above four percent of GDP in the current fiscal year exceeding the target. “In the next year, we’ve a plan to hold it down.”
He said that if steps could have been taken three months earlier, the results could have been different.
Muhith said: “The problem for the populist government is that adjustment of subsidies becomes a serious problem.”
The budget deficit of the current fiscal year may stand at 5.1 percent of the GDP while the target for budget deficit for the next fiscal year is 5 percent, he said.
The Finance Minister said that priorities for the next budget would be as usual on power and energy, human resource development, agriculture, health, and education.
He said the next budget size would witness a growth of 17 percent while the Annual Development Programme (ADP) would amount to Tk 54,000 crore.
Citing weaknesses in foreign aid utilization, he said: “Highest emphasis will be given on utilization of foreign aid as disbursement has not increased compared to commitments.”
On digitization of land records, Muhith said that the government has some plans to move forward on Public-Private-Partnership (PPP) basis involving the Bangladesh Computer Samity and BASIS.
He informed that zoning in 160 upazilas is likely to be started in next 2-3 months.
On the much talked about Padma Bridge project, the Finance Minister iterated that the construction works for the bridge would start from next season. He, however, did not say how the funding of the project would be done.
In the meeting, the NGO representatives suggested the Finance Minister to give more emphasison budget implementation, increase allocation in the education sector including in technical education, widen the income tax net, give attention to the slum dwellers as well as to marginal people, and take appropriate measures for ensuring nutrition for all.
Executive Director of Campaign for Popular Education (CAMPE) Rasheda K Chowdhury, Dr. Jafarullah Chowdhury of Gano Shasthya Kendra, Bangladesh Mahila Parishad president Begum Ayesha Khanam, chair of Refugee and Migratory Movements Research Unit (RMMRU) Dr. Tasnim Arefa Siddiqui, among others, spoke on the occasion.
Senior secretary of Finance Division Dr. Mohammad Tareque, senior secretary of Economic Relations Division (ERD) Iqbal Mahmood, Bank and Financial Institution Division Secretary Shafiqur Rahman Patwari and acting Planning Secretary Bhuiyan Shafiqul Islam were present.
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