Bangladesh on a Pathway to Prosperity Time is Ours, Time for Bangladesh Budget Speech 2019-20 A H M Mustafa Kamal, FCA, MP Minister Ministry of Finance Government of the People’s Republic of Bangladesh 30 Jaisthya 1426 13 June 2019 Table of Content Topic Page Chapter I Bangladesh on a Pathway to Prosperity Time is Ours, Time for Bangladesh Celebration of the 100th Birth Anniversary of the Father of 1-9 the Nation, Profound Tribute and Deepest Gratitude, Dedication, Sowing the Seeds of Development of the Country in 1972 under the Leadership of Bangabandhu, Worst Killing Spree of the History in 1975, Return of the Daughter of Bangabandhu to her own country, Revolutionary Changes in the Country from 1996 to 2001, Vision 2021, The Government’s Last Ten Years’ Achievements in the Macroeconomic Management, Position of Bangladesh in the World Economy, Implementation of Verdicts on the Father of the Nation Bangabandhu Murder Case, and the Cases on War Crimes and Crimes against Humanity, World Leader Hon’ble Prime Minister Chapter II The Supplementary Budget for the FY2018-19 10-11 The Supplementary Budget for the current FY2018-19, Revised Revenue Income, Revised Expenditure, Revised Budget Deficit and its Financing Chapter III Proposed Budget Structure of FY2019-20 Proposed Budget Structure of FY2019-20, Enhancing 12-16 Reveune Colleciton Capacity, Widening Tax Net, Overall Expenditure Structure i Topic Page Chapter IV A Journey Towards Properous Future Sectoral Strategies, Action Plans and Resource Mobilization, Medium-Term Policy Strategy 17-65 Education: Quality Primary Education, Science and Technology-based Secondary and Higher Education, Employment-friendly Technical and Vocational Education, Madrasa Education; Health and Family Welfare; Human Resources Development; Employment Generation; Physical Infrastructure: Power and Energy, Communication Infrastructure, Bangladesh Delta Plan; Agriculture sector: Fisheries and Livestock, Combatting Climate Change and Protection of Environment; Local Government and Rural Development: My Village, My Town, My House My Farm; Industrialization and Trade: Promising Eco-Tourism, Blue Economy; Digital Bangladesh: Achievements and Prospects; Poverty Reduction and Social Safety Net Programmes: Development of Disabled People, Interest-free Microcredit for Poverty Reduction, Welfare of Freedom Fighters, Empowerment of Women and Focus on Children; Planned Urbanization and Housing; Sports, Culture and Religion; Sustainable Development Goals (SDGs) Chapter V Reform and Good Governance 66-75 Improvement of Investment Climate; Reforms in Financial Sector: Good Governance in Capital Market, Reforms for maintaining discipline in the financial sector, Insurance for ii Topic Page encountering risk; Public Financial Management (PFM: Application of IBAS++, Radical Transformation of Project Fund Release Process, Payment of Social Safety Allowances through G2P; Reform of Pension: Payment of Pension through EFT, Introduction of Universal Pension Scheme; Public Administration for Public Service: People Friendly and Efficient Public Administration, House Building Loan for Government Employees; Use of ICT in Case Management; Prevention of Corruption. Chapter VI Revenue Collection Activities Revenue Collection Activities: Achievement of Revenue 76-78 Collection, Bringing Capable Taxpayers under Tax Net, Automation, Implementation of VAT and Supplementary Duty Act, 2012, Scanning of Import-Export Products Chapter VII Income Tax, VAT and Import & Export Duty Direct Tax ( Income Tax): Tax Exemption Threshold and Tax 79-98 Rates, Company Tax Rate, Equity and Fairness, Social Welfare, Incentives for the share market, International Best Practice; Value Added Tax: Characteristics of the Act, Proposed Reforms, Tax Exemption, Impostion of VAT, Imposition of Supplementary Duty, Proposed Tax on Tobacco and Tobacco Products, Import-Export Duty-Taxes: Agriculture sector, Industrial sector - Milk Powder, Sugar, Medicine, Other Industries and Export Duty, Tranpsort sector, ICT sector, Risk Management System, Amendments in First Schedule of the Customs Act iii Topic Page Conclusion Conclusion 99-100 Annexure-A Table-1: State of Socio-economic Progress 102 Table-2: Progress in a Decade 102 Table-3: Supplementary Budget for 2018-19 103 Table-4: Proposed Budget Structure for FY 2019-20 104 Table-5: Annual Development Programme (Sectoral 105 Allocation) for FY 2019-20 Table-6: Sectoral Allocation in Budget 106 Table-7: Ministry/Division-wise Budget Allocation 108 Annexure-B Table-1: Revenue collection scenario in last ten years 112 Table-2: Tax rates for taxpayers other than companies 112 Table-3: Company tax rate 113 Table-4: Rates of surcharge 113 Table-5: TDs rate on the bill of contractors and suppliers 113 Table-6: Agriculture sector 114 Table-7: Industrial sector 114 Table-8: Transport sector 119 Table-9: ICT sector 120 Table-10: Firefighting equipment 120 Table-11: Gold import 120 Table-12: Tariff rationalization 121 iv In the name of Allah, Most Gracious, Most Merciful Bangladesh On A Pathway To Prosperity Time is Ours, Time for Bangladesh Madam Speaker 01. I seek your kind permission to place before this august House the proposed budget for FY 2019-20 and the supplementary budget for FY 2018-19. Chapter I Madam Speaker 02. Bangladesh is now well poised to celebrate the golden jubilee of our glorious independence and the 100th birth anniversary of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman, which is a rare occasion in our national history. We are committed to the nation to realize fully the Vision 2021 and implement the agenda for 2030 for building a happy and prosperous future for the nation, and thus materialize the Father of the Nation’s cherished dream of establishing Sonar Bangla (Golden Bengal), which is the fundamental premise of our current election manifesto too. Madam Speaker 03. First of all, I pay my profound tribute and deepest gratitude to the Father of the Nation, Bangabandhu Sheikh Mujibur Rahman, the man with colourful political personality, the possessor of a magical voice, the greatest Bengalee of all times and the architect of independent Bangladesh; I remember with profound respect all the martyrs of the fateful night of August 1975. I also pay tribute to the four most competent comrades of the Father of the Nation who were killed in jail, thirty lakh 1 martyrs in the war of liberation, all the valiant freedom fighters and two lakh women who were brutally persecuted during the war. I pray to the Almighty Allah for the salvation of their souls. Madam Speaker 04. At this auspicious moment for the nation, on behalf of our people, I would like to humbly dedicate, through you, the proposed national budget for FY2019-20 to the Father of the Nation Bangabandhu Sheikh Mujibur Rahman and to those who stood by him in response to his clarion call for independence. Madam Speaker 05. I feel myself proud and most fortunate for getting the opportunity to present this budget for the first time before the august House. I express my profound gratitude to the Almighty Allah. I again pay my tribute to the Father of the Nation who imbued with the national consciousness embedded in him the vision of a prosperous Bangladesh. I would not have got the opportunity to present today’s budget before this august House had he not freed our beloved motherland. Alongside, I convey my gratitude to our beloved leader Jananetri Sheikh Hasina, the worthy successor of the Father of the Nation, the most successful and widely acclaimed statesman in the country after the Father of the Nation. Had she not reposed trust on me and given me the portfolio of the Finance Ministry, I would have never got this rare opportunity to present the national budget for FY 2019-20 before this august House. And, my life would have remained unfulfilled. 06. Hon’ble Prime Minister, for you, I have a lot of respect, a lot of gratitude. May the Almighty Allah bless you. May your life dedicated to the cause of our people be strewn with many successes. Hon’ble Prime Minister, I am committed to repay all my debt to you and 2 to the Father of the Nation, by working for our beloved motherland with full dedication. Madam Speaker 07. I would like to inform the countrymen that the proposed national budget for FY2019-20 has been structured around the spectacular achievements of our government during the last 10 years, which surpass even the fairy tales. While recounting all these successes achieved under the leadership of our successful Prime Minister is a huge task; I would like to highlight some of the major successes before the nation, especially to the young generation through this august House. 08. You are aware that all our successes during the last 10 years did not begin only in 2008; rather the seeds of development of the country were sown in 1972 under the leadership of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman. After the glorious liberation war, the Father of the Nation Bangabandhu took up the task of transforming this war-ravaged country into the ‘Golden Bengal’. Unfortunately the anti- liberation forces temporarily halted that effort in 1975 by killing Bangabandhu, his family, and the jailed four national leaders in the worst killing spree in the history of Bangladesh. 09. Jananetri Sheikh Hasina, the daughter of the Father of the Nation, came back to her own people on 17th May 1981 spending long six years in exile with endless miseries after 1975. The people of the country became leaderless after the brutal murder of Bangabandhu. Her return from exile was, therefore, a great source of jubilation for the people. Indeed, this was a great boon for the nation. 10. Following a series of struggles for long 15 years, Hon’ble Prime Minister Sheikh Hasina took up the task of revitalizing the nation after winning the National Elections in 1996. 3 Madam Speaker 11. Under the leadership of Hon’ble Prime Minister the country witnessed many revolutionary changes during the period from 1996 to 2001.