Dhaka: Finance Minister Amir Khosru Mahmud Chowdhury announced on Thursday that the government has initiated a comprehensive reform program aimed at transforming the current economic system into a welfare state by moving away from its oligarchic and patronage-driven roots. The minister shared this vision while addressing a roundtable discussion titled 'Budget in Times of Crisis and Public Expectations' at a hotel in Dhaka.
According to United News of Bangladesh, the finance minister emphasized that democratization of the economy is at the core of the current government's philosophy. Special focus is being placed on integrating marginalized groups such as rural blacksmiths, potters, and weavers into the mainstream economy, as they have historically been excluded from the budgetary framework.
The upcoming national budget will feature projects and fund allocations aimed at promoting the creative economy, including sectors like theatre, culture, music, painting, and artificial jewellery. Plans are also underway to establish 'theatre districts' in major cities beyond Dhaka. This initiative aims to brand and promote Bangladesh's culture, films, and music globally, thereby enhancing the country's soft power, similar to strategies employed by neighboring nations.
Khosru further elaborated on the government's commitment to reducing the cost of doing business by addressing excessive charges and bureaucratic hurdles at ports and throughout the supply chain. The number of approvals needed for business operations and project implementation will be reduced to 13, simplifying what he described as an overly complex system.
Digital automation of the entire economic and administrative system is set to be completed within the next year. This includes the introduction of a 'One Citizen, One Card' system for all public services. In the financial sector, the government is focused on strengthening capital and bond markets as viable alternatives to high-interest bank loans, an initiative that has garnered interest from international investment bankers, fund managers, and the International Finance Corporation (IFC).
Addressing tax policy, the finance minister stated that the government would verify the market share of multinational and major tobacco companies, including The Coca-Cola Company and PepsiCo, to ensure fair tax collection and mitigate tax evasion. A simplified flat-rate tax system is also proposed for small restaurants and shop owners to bring them under the tax net and reduce harassment by tax officials.
The finance minister outlined sweeping changes in tax policymaking through a proposed bill aimed at forming a policy-making body with expertise in the global economy, local trade, and human profitability, rather than a sole focus on tax collection. He urged the public to remain patient over the next two years, as the government's objective is not only to increase GDP growth but also to ensure that the benefits of such growth reach ordinary citizens.