FY24 budget not aimed at pleasing IMF: Mannan

The upcoming budget will not be aimed at pleasing the International Monetary Fund (IMF), said Planning Minister MA Mannan today.

While speaking at a pre-budget discussion organised by NTV, a news channel, he said many are making criticisms, saying that the budget for 2023-24 will be framed in a way that would make the IMF happy.

"I strongly disagree. The IMF has nothing to do with our budget. We have prepared our budget."

The comments from the planning minister come as the finance minister is expected to present a budget that may take into account the conditionalities attached by the IMF with its $4.7 billion loan programme.

In order to secure the loan, the government has agreed to time-bound conditions, including some key structural reforms stalled for years, that would preserve macroeconomic stability and support strong, inclusive and green growth while protecting the vulnerable.

Speaking at the discussion, Muhammad Abdur Razzaque, agriculture minister, said the government is working to keep the prices of essential commodities within the purchasing power of the people.

Md Jasim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industry, termed the current situation as the worst for businesses in four decades.

"Reining inflation would be the main challenge for the upcoming budget," he said, calling for adjusting tax and VAT on the imported essentials.

Mohammad Hatem, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association, said in the past one year, businessmen had faced multiple challenges that they usually experience throughout their entire life.

Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue, urged the government to expand the tax net.

"There should be a coordination between the monetary policy and the fiscal policy."

Salehuddin Ahmed, a former governor of the central bank, said local economists and experts have long recommended the government address the issues that have now been set as conditions by the IMF, but the government did not pay heed.

The programme was moderated by Zahirul Alam, chief news editor of NTV.