Dhaka, Bangladesh (BBN) – The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
BANGLADESH TO ANNOUNCE BDT 2.95 TRILLION BUDGET FOR FY 16
Bangladesh government is going to announce more than BDT 2.95 trillion (US$37.95 billion) budget for the fiscal year (FY) 2015-16 aiming to bring dynamism in the overall economic activities through improving infrastructure facilities across the country. The size of budget is actually over BDT 445 billion higher than that of the current fiscal year as a government high-powered committee earlier approved BDT 2.41 trillion revised budget for the outgoing FY 15, a senior government official, familiar with the budget formulating process, told BBN in Dhaka.He also said the government has been increasing its budget size as it believes that the increased allocations are playing a role in improving the infrastructure and promoting people’s welfare.
BANGLADESH TO KEEP INFLATION RATE AT 6.2%, TARGETS 7.0% GDP FOR FY 16
Bangladesh government is likely to keep the inflation rate at 6.2 per cent for the next fiscal year (FY) 2015-16. It may set the growth of gross domestic product (GDP) at 7.0 per cent. The inflation target has been estimated at 6.2 per cent for FY 16 which has been set at 6.0 per cent for next two fiscal years (FY 17-18), a senior official associated with budget formulation told BBN in Dhaka. “We expect that the rate of inflation will bring down at 6.2 per cent by the end of the FY 16 if a favourable natural environment and a stable political situation continues,” the official noted.
DUTY ON SUGAR, CAPITAL MACHINERY SET TO GO UP
The budget for upcoming fiscal year (FY) is likely to propose an increase in import duty on both raw and refined sugar, capital machinery and impose tax on talk-time of mobile phone subscribers. A number of imported items, nearly 381, may also see a cut in the Supplementary Duty (SD) rates during the upcoming FY. Import duty on some electrical and electronic products and dairy items may be reduced in the budget.
‘SLOW’ TROUBLE
Banker Rafiqul Islam saw off his wife at Shahjalal International Airport and was still on his way back home to Dhanmondi when he got the call from Kolkata. I have arrived safely, his wife said. But Rafiqul was nowhere near his home. A few weeks back, he had taken a bus ride to Chittagong for an official meeting. The journey seemed an endless ordeal as it took him about ten hours to cross those 286 kilometres. Rafiqul’s story sums up what Finance Minister AMA Muhith faces as his tasks in the budget that he would present today and in the years to come.
MUHITH’S CHALLENGES
Boosting private sector investment and job creation for millions of unemployed youths are the two major challenges for Finance Minister AMA Muhith as he unveils his seventh budget today, analysts said. The other challenges include addressing infrastructure constraints, efficient governance, delivery and implementation. Accelerating the growth of gross domestic product through higher investment remains the key challenge for the government, Mustafizur Rahman, executive director of the Centre for Policy Dialogue, said.
BANGLADESH BANK PURCHASES $20M MORE FROM TWO BANKS
The central bank of Bangladesh purchased US$ 20 million more from two commercial banks on Tuesday aiming to help keep the inter-bank foreign exchange (forex) market stable. “We’re purchasing the US dollars from the banks at market to protect the interest of the exporters and migrant workers by keeping the exchange rate of the local currency against the greenback stable,” a senior official at the Bangladesh Bank (BB) told BBN in Dhaka.
REMITTANCE SET TO CROSS $15B IN FY15
The country’s inward remittance for the first time is set to cross the $15-billion mark this financial year as the remittance stood at $13.87 billion in 11 months of the FY15. A Bangladesh Bank official told New Age on Wednesday that the upcoming Eid-ul-Fitr would help the inward remittance to cross the $15-billion mark as the expatriate Bangladeshis usually send healthy amount of greenback to their near and dear ones ahead of the Eid. Eid-ul-Fitr, one of the biggest religious festivals for Muslims, will be celebrated in the third week of July.
9 COMPANIES FINED FOR CREATING SHAHJIBAZAR SHARE DEMAND ARTIFICIALLY
The Bangladesh securities regulator has imposed an aggregate amount penalty worth BDT 46.5 million on nine companies and three individuals for their involvement in creating ‘artificial’ demand for Shahjibazar Power Company’s (SPCL) share. The decisions were taken at a commission meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday. Prime Islami Securities Limited (PISL) will have to pay a penalty worth BDT 25 million, PFI Securities will have to pay a penalty of BDT 15 million, Prime Finance Capital Management BDT 2.0 million, AIBL BDT 0.1 million, Sharp Securities BDT 0.2 million, BLI Capital BDT 0.1 million, GETCO Telecommunication BDT 0.5 million and LIBRA Trading Corporation BDT 0.2 million.
TK 383B BANK BORROWING LIKELY TO FINANCE BUDGET DEFICIT
The government is likely to set its target of borrowing from the banking system at Tk 383 billion to finance the budget deficit partly for the next fiscal year (FY) 2015-16, officials said. “The government will borrow the money from all the scheduled banks through issuing Treasury Bills (T-bills) and Bangladesh Government Treasury Bonds (BGTBs) to finance partly its would-be budget deficit – the difference between its overall expenditure and revenue and other receipts – for the FY 16,” a senior official associated with public debt management-related activities told the FE Wednesday. He also said the government’s budgetary expenditure may rise as implementation of different development projects, particularly the infrastructural ones, will be strengthened in the next fiscal year.
BBN/SSR/AD