Kamal sees six major challenges for FY23

AHM Mustafa Kamal, Finance Minister, identified six main issues for fiscal year (FY23) and stated that the government must be pragmatic in handling these challenges, as failing to do so could undermine macroeconomic stability.

While placing the national budget for FY23, Kamal said the challenges are 1) containing inflation and enhancing domestic investment; 2) financing additional subsidy required for the increased price of gas, power and fertilizer in international markets; 3) utilizing funds available through foreign assistance and ensuring timely completion of high priority projects of ministries/divisions; 4) ensuring timely completion of projects in education and health sectors; 5) increasing collection of local Value Added Tax and raising the number of individual tax-payers and 6) maintaining stability in the exchange rate of taka and keeping foreign exchange reserves at a comfortable level.

As in past years, he said he engaged with prominent business organizations, reputable economists, and media celebrities as part of the FY2022-2023 budget development. In addition, he received budget ideas from Ministries/Divisions and various organizations.

He added that the sales price of fossil fuels, gas, electricity, and chemical fertilizers will be adjusted gradually and on a small scale, and that the tax collection automation process will be accelerated in order to ramp up revenue mobilization activities, and that VAT and income tax coverage will be expanded.

Imports of luxury and dispensed items will be restricted, and under/over-invoicing will be closely controlled, according to Kamal. The Taka's exchange rate versus the US dollar will be maintained at a competitive level.