DHAKA, June 6, 2024 (BSS) - Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) President Mahbubul Alam today said the proposed budget for the fiscal year 2024-2025 is logical and realistic at a time of recession in the global economy.

 "This budget is logical and realistic. It can be implemented through the joint effort of government and private institutions. The government has prioritised national interest in the budget," Mahbubul Alam said in an immediate budget reaction at the FBCCI office in the city.

He, however, called on the government to lower the target of bank borrowing to meet the budget deficit.

"If the government borrows from domestic banks to meet the budget deficit, the businessmen will not get loans. So the FBCCI calls on the government to take more loans from abroad," he said.

Mahbubul Alam said, "We called for the withdrawal of Advance Income Tax (AIT) as part of facilitating ease of doing business in the country. But it was not withdrawn."

The FBCCI president also proposed to increase the tax-free income limit to Tk4,50,000 from Tk3,50,000.

With an eye towards battling inflation, Finance Minister Abul Hassan Mahmood Ali today unveiled the Tk7.97 lakh crore proposed national budget for the fiscal year 2024-25.

In the proposed budget, the government has to collect a total of Tk2.56 lakh crore from foreign and domestic sources to meet the budget deficit. 

Out of this, Tk95,100 crore will be collected as foreign grants and loans and Tk1.61 lakh crore will be collected from domestic sources. 

The government has set a target of borrowing Tk1,37,500 crore from the banking sector to meet the budget deficit.

In the proposed budget, the government has retained the tax-free income limit at Tk 3,50,000 for individual taxpayers.