Budget lacks guidance against corruption, money laundering: TIB

Transparency International Bangladesh (TIB) has expressed concern that the proposed budget did not acknowledge the ongoing economic crisis, growing income inequality and dwindling foreign exchange reserves, rampant corruption and the increase in money laundering.

It is not clear how an ambitious budget without any direction will be meaningfully implemented to control corruption and laundering, the anti-corruption watchdog said in a statement issued on Friday.

Any hope that this budget will play a role for the mass people outside the circle of power is absolutely unreasonable, the statement reads.

In the statement, TIB Executive Director Iftekharuzzaman said the finance minister in the budget speech dodged the issues of corruption and money laundering, which are the main obstacles to sustainable and inclusive development.

The proposed budget missed the issues even though the government is aware that a moderate level of corruption control would push the national income to grow 2%-3% more, he said.

According to reliable estimates, at least $12 billion dollars worth of money is being smuggled out of Bangladesh annually, the statement mentioned.

There is no doubt that a budget without direction to control the vicious circle of corruption and money laundering will facilitate more to commit such acts, it further said.

However, TIB lauded the government for not extending the facility to bring back laundered money without question.

It urged the government not to continue the opportunity to whiten black money through investments in plots and flats.

The TIB executive director said, "Our past experience says that no government has been able to collect the desired amount of revenue by allowing black money to be whitened despite repeated opportunities."

It only protected the corrupt and contributed to the deepening of corruption, he said.

TIB expects that the government will show determination to ensure that such opportunities are not given again under the pressure of interest-seeking groups.

Besides, TIB said the budget has failed to provide adequate allocation in the social security programme and also in terms of cost management of subsidy allocation.

Allocation in subsidies and incentives in social security is only Tk5,000 crore, TIB mentioned, it said, adding that "Neither the coverage nor the number of beneficiaries of social safety programmes has increased."

Furthermore, in the proposal, for subsidy expenditure of Tk84,500 crore, Tk60,000 crore has been allocated for public administration.

The TIB expects the government will adjust these issues before the budget is passed, with effective guidelines for transparency and accountability, good governance, and control of corruption and money laundering.