Country's macroeconomic condition is good: Finance Adviser 

Finance Adviser Dr Salehuddin Ahmed today said the macroeconomic condition of the country is more or less good thanks to positive current account balance, financial account and healthy inward remittance flow.

"Our macroeconomic condition is more or less good. The current account balance is positive...the financial account is positive and the inward remittance flow is good," he said.

The finance adviser was briefing reporters after the working session of his ministry on the 2nd day of the ongoing DC Conference at the Osmani Memorial Auditorium here. Secretaries concerned were present.

About the proposals by the Deputy Commissioners, Dr Salehuddin said the officials have proposed digital disbursement of the allowance while moving from one upazila to another upazila in the CHT region, giving more attention to the mentally and physically challenged people, further simplifying access to finance to the SMEs, addressing transport problem in the remote areas and other related costs.

He said they also proposed further widening the tax net as many businessmen in the rural areas make hefty profits but do not pay taxes and VAT, streamlining primary school management in the char areas and remote areas.

"We've assured them of considering their proposals as those are interactive and definitely there is further scope for improvement," he added.

The adviser said that he had suggested the DCs to raise their specific problems through the Cabinet Division or Cabinet Secretary, Divisional Commissioners while the government would try to resolve those.

He said another important thing is that doctors and other professionals often make cash transactions while those could not be brought into accounts. In such case, he said the officials suggested making the transactions through digital method and bank cards for having records.

"We want that every transaction remain faceless so that a taxpayer need not to see the faces of tax and customs officials and we, from the Ministry of Finance, are working on it. Every transaction abroad is faceless," he said. 

Responding to a question, he said that the government had negotiations with the IMF for disbursement of its tranches under the $4.7 billion package.

"We've told them (IMF) that we've certain works and we're not thriving for it...we're seeking such fund for our own needs...we told them we'll do it on our own way," he said adding that the government is not desperate for availing loans from the IMF and World Bank.

The finance adviser said that they would wait for some time while they are expecting the two tranches of IMF loan in combine in this June which would help balance payment support.

Responding to the suggestion for widening further the tax net, the adviser said the NBR could launch special drives in the respective areas while the DCs could help identify the big taxpayers even in the thana headquarters. 

"Unless we further widen the tax net, we won't be able to do...we're trying to widen the tax net further through not increasing the rate and thus keeping it at a tolerable level in the upcoming budget," he added.

The finance adviser said if the field-level officials become public servants in true sense and also become efficient, then the people get the real government services.

Considering Bangladesh's context, the finance adviser said the most important weakness is that the implementation often takes much time while the government needs support and cooperation from the field-level officials in this regard.

Regarding ADP implementation, Dr Salehuddin said more employments should be generated as it is easy to generate more employments at the local level. 

In the Annual Development Programme (ADP), he said, "There is certain advantage to move forward with local-need based initiatives to have infrastructural development and employment generation...the rural areas can be developed further through ensuring IT and electricity".

"Unless there is development in the IT sector, we won't be able to ensure balanced development," he said.

For service improvement, he said the officials suggested ensuring more improved management in the educational institutions especially in the char areas.

They also suggested how to ensure more facilities to the teachers, arranging hostels in schools, strengthening further the coordination between the divisional commissioners and deputy commissioners and other field-level officials, involving officials from various sectors like from the banking sector in coordination process, he said.

He said the DCs have suggested that they would help the concerned authorities to identify the potential taxpayers especially in the industrial areas adding, "We'll have to collect more revenue ...although we've a huge number around 50 lakhs of industrial units, but only five lakhs give VAT,"

For realizing more revenues and widening further the tax net, the finance adviser said drives are already underway. "Now we're more cautious and we'll stress more direct tax instead of indirect tax,"

Replying to another question, he said that the patients should insist that the doctors should give receipts of the fees that they provide. The patients should be more conscious in this regard while the same thing should be also applicable for the lawyers, he added.

He said they now want to term the DCs as servants not as administrators.

Replying to another question, he said the FAO and IFAD have big roles in Bangladesh's agricultural sector adding, "I've already approached FAO and IFAD to lend more support to us."