The country will no longer need foreign aid to support the government’s annual budgets in the near future if the economic reforms especially in the areas of revenue collection are executed, hoped the NBR chief yesterday.

Bangladesh’s current economic activities have enough strength to support its national budget, said Muhammad Abdul Mazid, chairman of the National Board of Revenue.

“If the actual revenue from the overall economic activities can be realised and a transparent monitoring system is developed, there will be no need for foreign aid in formulating budgets very soon,” the chairman told The Daily Star.

Now, the contribution of internal resources to Bangladesh’s budget is around 86 percent, while foreign aid’s contribution stands at 14 percent.

The size of Bangladesh’s budget for 2007-08 is Tk 796 billion.

Referring to the robust growth of telecoms sector, the chief of apex tax authority said mobile phone users in the country spend around US$ 115 million a year on making calls.

Mazid said the NBR is undergoing massive reforms to generate revenue.

” The taxmen have the legacy to create panic among taxpayers. We directed the officials not to create panic.”

The NBR chairman said due to the reforms the government is getting more revenue from income tax.

The NBR posted a 46 percent growth in income tax and 84 percent growth in other tax indices in five months of 2007-08.The government’s total revenue stood at Tk 392.47 billion, Tk 361.75 billion, Tk 319.50 billion, Tk 283.00 billion and Tk 249.50 billion in FY 2006-07, FY05-06, FY04-05, FY03-04 and FY 02-03.