Dhaka, Bangladesh (BBN) – The BBN (Bangladesh Business News) has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
Deficit could reach 5.7 per cent of GDP
The deficit in the upcoming budget is likely to hit a new high of 5.7 per cent due to the government’s “expansionary” fiscal approach aimed at weathering the coronavirus effect on the economy, officials say. If that happens, the government’s budgetary deficit will surpass the traditional 5.0 per cent band of the GDP, according to available data. The Ministry of Finance officials said on Monday that nearly half of the deficit would be financed from overseas assistance and the rest from domestic borrowing.
Balance of payment shrinks with pandemic
The major economic indicators of the country’s balance of payments (BoP) shrivelled in the first nine months of the fiscal year on the back of the economic fallout from the global coronavirus pandemic. Both the contraction of exports and imports has not widened the trade deficit to a great extent in the first three quarters of fiscal 2019-20. But this is not a good sign at all for the country as the economy has been shrinking remarkably in the last few months, economists said.
May inflation falls to 5.35 percent
According to the Trading Corporation of Bangladesh (TCB), the price of rice depending on quality declined by 6.25 percent to 7.41 percent in May compared to April. Inflation decreased by 0.61 percentage points in May due to fall in demand because of the coronavirus crisis and expected harvest in Boro season. According to the latest report by the Bangladesh Bureau of Statistics (BBS), overall inflation fell to 5.35 percent in May. In April, it was 5.96 percent.
Mobile use, tobacco items likely to be costlier
The government is likely to raise the supplementary duty on mobile telephone uses and tobacco products in the national budget for the 2020-21 fiscal year to meet the increased demand for resources amid the coronavirus pandemic. The SD on mobile uses may be increased to 15 per cent from the existing 10 per cent, officials of the finance ministry said.
Banks might be able to give dividends to retail investors after all
Bangladesh Bank, it seems, may walk back on its bold move on May 12 to bar listed banks from giving cash dividends to both sponsors and investors until September to boost their capacity to absorb the strain on their capital base from the ongoing economic dire straits. The decision turned out to be wholly unpopular with general investors, who have been hit hard by the continued slide of the bourse.
Stocks slump a day after resumption on bourses
Stocks back into the red on Monday, a day after resumption of trading, amid growing tension over the impacts of coronavirus pandemic. DSEX, the key index of the Dhaka Stock Exchange, went down by 60.95 points or 1.50 per cent to close at 3,999, after adding more than 52 points in the opening day after 66-day closure.
No penalty for late deposit payment
The Bangladesh Bank has instructed all banks not to charge any penalty fee on its DPS and other deposit scheme customers for late payment in April and May amid the Covid-19 pandemic. The central bank issued a circular in this regard on Sunday. In the circular, the Bangladesh Bank also instructed banks not to close any DPS or savings schemes for instalment failure in the two months.
Economists: Upcoming budget should ensure people’s livelihoods
Economists and experts said the upcoming national budget should focus on survival of livelihoods through strengthening health, medical and social security sectors. They expressed their views about the upcoming national budget for fiscal year 2021 at a pre-budget discussion webinar organized by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) on May 29, said a press release issued on Monday.