Dhaka, Bangladesh (BBN) – The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
Govt ups subsidy outlay by 5.23pc despite price slump
The government has revised upward its subsidy payments by 5.23 per cent for the outgoing fiscal year (FY), 2014-15, as some sectors still feed on the generous state bounties. The government revised the subsidy amount to BDT 274.16 billion, up by BDT 13.63 billion from the original allocation. Insiders, however, seem concerned over such subsidy consumption at a time when global prices of items like petroleum and fertiliser witnessed a drastic fall.
Suspension on treasury bonds auction extended for June
The government has extended suspension on the auction of treasury bonds by another month aiming to manage its cash management efficiently, officials said. The central bank of Bangladesh communicated the government’s latest decision on suspension of the holding of treasury bonds auction with the commercial banks on Sunday. “The central bank has conveyed the government’s decision to the banks in line with the finance ministry’s advice,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in Dhaka.
Big chunk of subsidy goes to the rich
The introduction of rental power plants has changed the subsidy regime, raising questions whether the budgetary allocation is spent on the poor or the affluent class. The share of subsidy to the GDP was 0.45 per cent in the financial year 2009-10, the first year of the previous tenure of the Awami League-led government. It jumped to 1.25 per cent in 2010-11 and to 2.08 per cent in 2011-12 because of rental power plants owned by business groups with close link to the government. The subsidy, however, came down to 1.76 per cent of GDP in the last fiscal.
New FBCCI chief pledges massive reforms
Newly elected FBCCI president Abdul Matlub Ahmad has promised that he will bring massive reforms to the country’s apex trade body including its electoral system and make sure that the entrepreneurs are getting necessary business facilities towards industrialising the nation. He said this while taking over charge of the body from his predecessor yesterday for the term 2015-17. “As the zenith trade body, the FBCCI must ensure better business facilities for the country’s business community, and for that we need reforms,” Matlub told the Dhaka Tribune. He said efforts will be made to change election system, strengthen research and development department, modernise operational system, digitalise work station, change monogram and set up a media centre to update trade-related data.
Tax holiday for automobile industry on cards
The government is likely to offer tax holiday facility for automobile, tyre and bicycle industry in the budget for the upcoming fiscal year (FY) to help boost growth of local manufacturing sector. The budget for the FY 2015-16 may propose tax incentives for industrial growth and lure investment from both local and foreign investors. Tax holiday facility may be offered for a 10-year period, sources concerned said. Currently, a number of industries, both manufacturing and infrastructure development, are enjoying tax holiday facility.
DSE forms IT assessment team to prevent glitches
The Dhaka Stock Exchange has formed a three-member information technology assessment team following the recent technical glitch at the bourse that had resulted in disruption of trading for consecutive two sessions, a DSE official told New Age. The IT assessment team of the bourse has been asked to find out the reason behind the technical glitch in the trading of the bourse and give suggestions to solve problems in this regard, he said. DSE directors Shakil Rizvi, M Kaykobad and Ruhul Amin are the members of the team which was also asked to furnish a report in this regard within seven working days, the DSE official said.
Call money rates fall further in Bangladesh
The inter-bank call money rate fell further on Sunday mainly due to lower demand for short-term borrowing in the market, bankers said.
The call rate ranged between 5.25 per cent and 6.75 per cent on the day against the previous range between 5.25 per cent and 7.00 per cent. However, most deals were settled at rates varying from 5.25 per cent to 6.50 per cent, according to the market operators. The overall turnover in the call money market rose to BDT 46.15 billion on Sunday from BDT 39.96 billion of the previous working day, according to the central bank statistics.
Fire-caught Gazipur factory collapsed
Five floors of the fire-caught seven-storey Dignity Textile Mills at Betjur area under Sreepur municipality have collapsed. The incident took place around 4am Monday, 14 hours after the building caught fire on Sunday. However, the second floor of the building is still on fire. Fire Service and Civil Defence has declared the building dangerous and firefighting efforts has been stopped 10:20pm Sunday after the firefighters failed to bring the fire under control around.