Dhaka, June 8 (UNB) - Defending the government’s budgetary step to allow the black money to be whitened, Finance Minister AMA Muhith on Friday claimed that the proposed budget for the fiscal 2012-13 implementable saying that it is “not at all a big budget”.

“Perhaps, it’s lower in the region compared to India, Nepal and even Bhutan,” Muhith said adding that the country’s budget implementation capacity has increased to 80 percent from 40 percent in the past.

He made the remarks while addressing a post-budget press conference at the Osmani Auditorium in the city.

Planning Minister AK Khandaker, Agriculture Minister Matia Chowdhury, Bangladesh Bank Governor Dr Atiur Rahman, Finance Secretary Dr Mohammad Tarek, NBR Chairman Dr Nasir Uddin Ahmed and other top officials were present on the occasion.

At the press conference, the Finance Minister requested Prime Minister’s Adviser Dr Tawfiq-e-Elahi Chowdhury to reply to different queries from journalists on power sector, but the adviser ignored the request saying that answers to all those questions were given in a budget document of the finance minister.

He suggested the reporters to read the documents.

About black money whitening option, Muhith said this has been done mainly to bring the ‘undisclosed money’ into the fold of investment.

Denying the allegation that the black money whitening step was taken to facilitate the corrupt who recently won the license of banks, he said there is a punishment provision in the process, too. “The undisclosed money holders will have to pay 10 percent additional tax prior to taking the advantage.”

He mentioned the country has 42 to 82 percent of undisclosed money.

Replying to a question on no-specific allocation about Padma Bridge project in the budget, the Finance Minister said the government would take its final decision by next month and the implementation of the project will start in the next winter.

About the source of money for the project, he said Malaysia will place a proposal on implementation of the project under public private partnership. Apart from this, the government will create a Tk 3000 crore fund from block allocation for PPP projects. “The government will utilise some other instruments to raise the money as well,” he said.

Responding to another question on mobile phone users’ tax payment at two percent, he said the government will reconsider the matter to withdraw it.

Justifying the GDP target of 7.6 percent for the coming fiscal, the Finance Minister said there are doubts in many minds about the target achievement. “But this target should be achieved as the GDP targets in the last three fiscal were achieved”. He, however, termed most of the observations about GDP target as “political”.

Sticking to the step to fix 1.2 percent tax at the source of export, Muhith said this was done targeting the garment exporters who avail of many favours. “But they do not pay the expected tax …the government has taken the step to realise tax from those who own too much of wealth.”

About the increase of tax regime on local motorbike-manufacturing industries, he said they produce a very few of the total motorbikes.

Responding to a question on subsidy in different sectors, he said it would not be wise to disclose which sector will actually require what amount of subsidy.

Finance Secretary Mohammad Tarek said the total figure of subsidy is Tk 34,533 crore, which is 3.31 percent of the total GDP.

About the budget deficit, the finance secretary said the budget deficit at 5 percent of the GDP is quite normal as it is 6 percent in India, 5.5 percent in Vietnam and 6.2 percent in Sri Lanka.

Defending the GDP target at 7.2 percent in the coming fiscal, he said the investment base has been raised to 24 percent of the GDP, which indicates it achievable.

The finance minister ruled out the possibility of dearness allowance for the government employees in the new fiscal, but he said the government will do something for them before leaving office.

Defending the withdrawal of subsidy on some agriculture inputs, Agriculture Minister Matia Chowdhury said the government had given various subsidies to the farmers in the past.