Assessment and suggestions on the proposed budget for FY2008-09 by

Women Entrepreneurs Association of Bangladesh (WEAB):

 

WEAB, a national platform of 2,454 women entrepreneurs across the country, appreciates Finance Adviser Dr AB Mirza Azizul Islam for addressing some SME and women issues in the proposed budget.

 

1. We thank the finance adviser for giving tax relief to SMEs with Tk 24 lakh turnover from earlier Tk 20 lakh. WEAB hopes the move would help boost SMEs in Bangladesh.

 

2. Allowing tax holiday for handicrafts exports for a 3-year period is a commendable decision.

 

3. WEAB considers enhancing the upper limit of investment in capital machinery is a positive move.

 

4. Increase in fund of the SME Refinancing Scheme by Tk 200 crore and continuation of SME Endowment Fund are two good moves in the budget. We again congratulate the adviser.

 

Suggestions

 

1. WEAB requests the finance adviser to introduce credit guarantee scheme for SMEs. India has launched the scheme in January this year to support SME sector.

 

2. Reduction of corporate tax for financing the SME industries.

 

3. Ensure collateral-free bank loans at 10 percent rate for the SMEs. For your kind information banks do not provide collateral-free loans to SMEs, particularly to the women entrepreneurs. Force banks to lend a specific percentage of its total portfolio for the women.

 

4. Steps need to be taken to promote SME products, especially of the women who face more challenges than their male counterparts in doing the business.

 

5. Allocate funds to develop designs for the SME products.

 

6. Recognize SME entrepreneurs nationally.

 

7. Ensure hassle-free implementation of the steps proposed in the budget.

 On women issues

 

1. Allow women entrepreneurs to import raw materials at a lower rate to improve their competitiveness.

 

2. We request the finance adviser to increase the quota for the women in the government jobs.

 

3. WEAB urges the government to be flexible in academic qualification in recruiting teachers in the primary schools.

 

4. We thank the finance adviser for addressing the gender issue, but it needs to be cleared what percentage of the budgetary allocation would be spent for the women.

 

5. Take steps to enhance skill of the women entrepreneurs at the district and divisional levels. Arrange training for the women who want to go to abroad for work. Introduce Help Line Center at district level to be run by women/trade bodies.

 

6. In the budget some Tk 526 crore has been allocated for NGO Foundation, PKSF and Social Development Foundation. But there is no clear cut point how much of the amount would be spent for the women.

 

7. Steps need to taken to set up Day Care center for working mother and hostels for the workingwomen.