Positive sides: I would like to comment first on the positive sides of the budget where revenue collection is emphasized and identified clearly for the next year. Salary of the private sector staff’s has been proposed to be paid through bank cheque, this will increase the transparency and accountability of the corporate sector. Income tax put on the credit card user will help to increase revenue generation. Price decrease on mobile phone SIM card will create more interest of the people for use. Tax Ombudsman enacted to ensure transparency in tax administration and accountability will start functioning from July 2006. Tk.1200 crore has proposed for agricultural subsidy and rehabilitation and Tk 244 crore for agricultural research is the positive steps. Maximum allocation for education sector and increase in the allowance for aged people up to Tk 200 are the overall positive side of this budget.
Negative sides: The target of revenue growth is high by ambitious as 17% has been targeted for the next year. Revenue expenditure and annual development program are also high ambitious. In the past 5 years, nation did not experience, growth of ADP within a range of 8-10% where it has been targeted to 21% in this year. The way of expenditure hasn’t mentioned clearly of the allocated budget for agriculture sector which may not reach to the farmers. In some case the tax on necessary goods has decreased which is not sufficient.
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