Covid slowed EFD installation progress: Finance minister

Finance Minister AHM Mustafa Kamal admitted that the National Board of Revenue's progress on installing Electronic Fiscal Device (EFD) machines has been a bit slow as the Covid-19 pandemic impacted every sector in Bangladesh.
 

He added that the NBR continues to install EDF machines even under the current circumstances, and once the situation becomes normal, the installation process will pick up the pace so that it can be completed within the shortest possible time.

After chairing two virtual meetings of the Cabinet Committee on Economic Affairs (CCEA) and the Cabinet Committee on Government Purchase (CCGP), Kamal expressed optimism that Bangladesh's economy will do much better in the coming days despite the impacts of Covid-19.

"Bangladesh will remain in the top position in Asia in terms of macroeconomic attainments at the end of the outgoing fiscal year [FY21]," he added.

Commenting on macroeconomic challenges in the new fiscal year starting from July 1, the finance minister said, "The challenges ahead of the government are many. But, we always consider them as our opportunities. "The world's economic history indicates that challenges bring a lot of opportunities, and we also think this way."
Kamal said all the major macroeconomic indicators are witnessing an uptrend at the end of the outgoing fiscal year. 

"Although many had voiced concerns over Bangladesh's attainments, we were able to achieve many things due to the timely decisions from our government headed by Prime Minister Sheikh Hasina," he said.  
Highlighting some of the latest major macroeconomic attainments, he pointed out that revenue collection has witnessed a growth of 17%, export earnings rose by almost 14%, and the foreign currency reserve is nearing $46 billion. 

"Besides, the inward remittance flow has reached around $25 billion, which was $18 billion last year. These achievements were possible due to the resilient nature of our people," the minister added.

When asked about the provision for whitening undisclosed money in the proposed budget for FY22, Kamal said the countrymen would have to wait until 29 June to know further about this issue, as that is when the Finance Bill would be passed in Jatiya Sangsad.

Responding to another question about the relatively high Budget deficit of 6.2% in the next fiscal year, he said the entire world is now pursuing such a strategy due to the pandemic.

Kamal said the government had adopted an expansionary monetary policy in the outgoing fiscal year and thus supplied money to the country's people in many ways to maintain their lives and livelihood.

He added that even the United Nations also urged the countries concerned not to pursue a contractionary monetary policy because of the pandemic situation.
The finance minister mentioned that the budget deficit of the USA is now 18.72%, while in India it is 13.07%, and in Japan 12.9%. Besides, the budget deficit in China is 11.8%, in Indonesia it is 8.06% while it is 6.2% in Vietnam.
"Either rich or not rich, every country is now going through [a relatively higher] budget deficit."

Replying to another question about the reserve heist of Bangladesh Bank, Kamal declined to make any comment.
The finance minister then said he is yet to get any formal request from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) on loan rescheduling in the wake of the pandemic. "Once I get it, the matter will be looked into."

When asked about the government's stance on getting Covid-19 vaccines from India, or in default, the possible measures for a refund, the minister said the health ministry is looking into the matter. 
He, however, informed that if the supplier ultimately failed to provide vaccines, then they would refund the money.