Total outlay proposed for the Bangladesh Budget 2021-22 (not 2021-22 which is

24 month period January 2021- December 2022, but July 2021-June 2022) is Taka
6.03 trillion. The amount is 17.5 per cent of the Gross Domestic Product (GDP) of
Tk 34.56 trillion of the country (lower than the optimal size of 20 per cent of GDP)
and therefore, cannot be termed as over ambitious. With a target to achieve a 7.2
per cent growth in GDP and a projected inflation of 5.3 per cent during the year,
the budget in not outside the trends even in the corona infected time. There is a
seemingly perceptible impression even in the government quarters that the fiscal
year 2021-22 (FY22) budget is 'business friendly'. What is wrong, if any, therein !

The expectation of the Finance Minister AHM Mustafa Kamal is that (a) the
business orientation of the budget, (b) reduction in corporate tax rates, (c)
extended tax holidays for establishment of hospitals, (d) reduction in advance
income tax, (e) reduction of duty on industrial inputs, (f) lowering duty of tariffs in
imports of micro bus and hybrid vehicles, (g) Value Added Tax (VAT) exemptions
at local level manufacturing stage on the production of sanitary napkin, continue
existing exemption facility at import manufacturing and trading stage of Covid-19
test kits, PPE and vaccine(s) as well as continuation of the 02 per cent and 01 per
cent incentives on remittance and ready-made garments (RMG) exports will result
in greater investment, higher protection to the domestic import competing
industries and more job creation. All these are purported to enable higher growth
and prosperity in the country. The projection of rising the investment-GDP ratio to
33.1per cent (private investment at 25.0 per cent and public 8.10 per cent) will be
much appreciated if the private sector rose to the occasion.