Kibria defends budget with no tax burden

Defending the new budget he authored apparently without fresh taxation, Finance Minister SAMS Kibria yesterday cautioned that the Bangladesh Nationalist Party (BNP) government would impose a tax burden on the people, or stop development, if they come to power some day.

"It's my fear that he (Saifur Rahman) will impose the tax burden," Kibria said in reply to a question at a post-budget press conference. In his instant budget reaction on Thursday, former finance minister, Saifur Rahman, said the internal deficit is seen to be financed through bank borrowings and selling savings certificates, tactfully avoiding new taxation.

"We have carried out development activities with the money collected through selling savings certificates," Kibria noted, justifying internal borrowing for deficit financing. He claimed that the proposed budget for the fiscal 2001-2002 is business-friendly and meant to protect local industries.

Replying to another question about waning foreign exchange reserves, Kibria said the reserves had fallen due to increased import of capital machinery which, in the long run, will boost exports to earn foreign exchange.

"It's a temporary pressure – we are not panicked for the future in this regard." The main opposition parties, which stayed away from Parliament, called it "a face-saving hoax" before the next elections scheduled for October.

"The country's economy is sluggish due to government mismanagement and corruption," said Mannan Bhuiyan, a BNP spokesman. "The budget proposals are full of falsehood and tall talks aimed at influencing the voters before the upcoming elections," said M.A. Matin of Jatiya Party (M-N).