Dhaka: The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Saturday said political stability and good governance are indispensable to implement the national budget for 2013-14 fiscal.

The apex trade body described the budget proposal as a 'realistic' one and said it would be a challenge for the government to implement.

"The budget is not ambitious, rather realistic," FBCCI President Kazi Akram Uddin Ahmed told a press conference on 'Review of Budget Proposal for 2013-14 Fiscal Year' at the federation Bhaban here.

Among others, FBCCI Vice-President M Helal Uddin and directors joined the press conference.

Finance minister AMA Muhith on Thursday proposed a Taka 222,491 crore budget for the coming fiscal.

Kazi Akram described hartal as democratic rights and said the apex trade body will continue to try to have dialogue with political parties to avert political violence in the country.

About the long-cherished Padma Bridge, he said the mega infrastructure will have to be built at any cost to add 1.5 percent GDP to the country's economy a year as per statistics.

He stressed the need for efficient fiscal management for giving a big boost to the country's economy.

He said negative side of the budget is that the government is expecting so much but it is difficult to implement. Any change in subsidy for agriculture will have a negative impact on the important sector, he said.

About the option of whitening black money, the FBCCI president referred to the Finance Minister and said it is a matter of public satisfaction. This option is not new in the country.

"I will describe whitening black money as undisclosed money and this should not be applicable for investment in purchasing flats and lands rather the government will have to take step to stop the source of black money."

He favoured investment of undisclosed money for development of industrial sector especially expansion of economic zones. "FBCCI can never encourage black money to be used for buying flats and lands only," he said.

"If the government doesn't borrow loans from banks, it will increase loan flow in the private sector and eventually increase revenue and fulfill revenue target."

"We will be landing at lower interest rates if the government does not increase interest rates on bonds and saving certificates."

On bank interest rates, Kazi Akram said commercial banks, Bangladesh Bank and Finance Ministry are working in a coordinated manner to lower interest rates. "I hope there will be a major change in lowering the interest rates soon."

The FBCCI chief hoped that Bangladeshi exportable will be more competitive worldwide as the reduction of import duty for all raw materials has been proposed in the budget.

Ends/AMA/08/06/13