Online Desk : Finance Minister AHM Mustafa Kamal has brushed aside concerns that the targets set in the national budget for fiscal 2023-24 were unattainable.

Despite criticism from economists over the lack of a clear strategy to address the key challenges facing the economy, Kamal maintained an optimistic outlook during his post-budget media briefing on Friday.

"We have not failed. We will not fail in the future. This is our firm belief,” he said.

On Thursday, Kamal presented a Tk 7.61 trillion spending plan in parliament with hopes of achieving 7.5 percent GDP growth and bringing down inflation to 6 percent to propel the development of a `Smart Bangladesh`.

In his budget speech, Kamal outlined plans to boost revenue generation to fuel the expansionary budget. However, the revenue target of Tk 5.04 trillion has been labelled `unrealistic` by some economists.

On the revenue mobilisation target set in the budget, Kamal alluded to the Awami League`s first stint in power when the National Board of Revenue had a goal of collecting Tk 590 billion.

Noting that the figure has now crossed Tk 2.95 trillion, he expressed confidence that the government would be able to meet its projections.

Kamal believes that the success of his fifth budget hinges on the `efficiency` and `diligence` of the people.

"The people of this country are at the root of everything. They set an extraordinary example with their efficiency, devotion to the country and responsibility to each other."

`IMF CONDITIONS HAD NO BEARING ON BUDGET`

The International Monetary Fund cast a large shadow over the formulation of the latest fiscal plan, particularly in light of the tough conditions it set when extending $4.7 billion in loans to Bangladesh earlier this year. These included reforms to the banking and taxation sectors, as well as reducing subsidies and increasing the social safety net proportionally

While experts suggested that the IMF`s conditions shaped many aspects of the budget, Kamal assured that it did not have any bearing on the formulation of the fiscal plan.

Prior to presenting the spending plan, however, the minister indicated that the budget for FY24 would reflect various reforms suggested by the IMF in order to secure the next tranche of the credit.

But a day after tabling the last budget of the Awami League government`s present term, Kamal said that the government would only incorporate aspects of the IMF`s `general advice` that it deemed acceptable. "They [the IMF] have no objection to that."

TK 2,000 MINIMUM TAX FOR RETURNS ‘JUSTIFIED’

Amid criticism of Tk 2,000 minimum charge for tax returns, the chairman of the National Board of Revenue, Abu Hena Md Rahmatul Muneem, said it should not be a burden on people who need a tax identification number for a range of services from the government, banks and other organisations.

In an effort to expand the tax net, the government has imposed the minimum charge on individuals whose earnings fall below the taxable income threshold but need to file tax returns to receive the services.

Economists criticised the move to collect tax even from people whose income is not taxable. "Such a move will burden low-income TIN holders and contradict the concept of tax-free income thresholds," the Centre for Policy Dialogue said.

When a journalist raised the issue at the press conference, Kamal asked Muneem to explain why the government included the proposal in the budget.

“If you check the list of people for whom returns are mandatory, you’ll see that TIN is compulsory for importers, exporters, trade licence-holders, commission agencies, for licensing guns, constructing buildings in city corporation areas, or buying cars,” Muneem said.

“It won’t affect the ordinary poor people because TIN is not mandatory for them.”

“It should be a matter of pride for the people, who fall under the mandatory TIN category, to submit Tk 2,000 annually to the government exchequer and become part of development. It shouldn’t be a burden on them.”