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.
Less ambitious, more realistic
In a break from the past, Finance Minister AHM Mustafa Kamal will set a more realistic revenue income target in his maiden budget, but may shy away from undertaking some much-needed economic reforms. In the last several years, the government focused more on setting lofty revenue earning goals, only to fall way short at the year end.
At-source tax on savings tools likely to go up
The government is likely to increase the rate of tax deducted at source from profit eared through savings instruments in the upcoming fiscal year (FY), 2019-20. The at-source tax rate for the government’s savings tools might be revised upward to around 7.0-8.0 per cent from the existing 5.0 per cent in the budget for FY 20, sources said.
Budget implementation goes off track
The implementation of the national budget in the outgoing financial year has gone off track because of slow revenue growth and struggle by government agencies to improve development expenditure and service delivery. The revenue growth in financial year 2018-19 is the slowest in recent years that has overshadowed impressive export performance and remittance inflow, said experts and finance division officials.
Budget FY 20: Tax holiday may extend for five years, safety program to see trimmed allocation
The upcoming budget is likely to expand and extend the areas for tax holiday facility, and coverage of social safety net program. However, shares of budget allocation and Gross Domestic Product (GDP) against the social safety net program are likely to be trimmed down in the upcoming budget compared to the current ones.
BB to form committee for curbing classified loans
The central bank of Bangladesh has decided to form a high-powered committee to recommend measures for reducing the volume of classified loans in the banking system. The decision was taken at an emergency meeting, held at the Bangladesh Bank (BB) headquarters in Dhaka on Tuesday with BB Governor Fazle Kabir in the chair, officials said.
Govt’s bank borrowing to soar 77pc
The government may bump up bank borrowing by as much as 77.32 percent to Tk 54,800 crore for financing the budget deficit in fiscal 2019-20 as it looks to reduce overdependence on saving instruments. However, the government had a high bank borrowing target this fiscal year too — of Tk 30,908 crore — but that is unlikely to be met.
Thai quotes unchanged rice prices at $404/tone
Thailand quoted rice prices nearly unchanged at US$404/tonne and continue to persist above other Asian exporters amid a strong baht. Indian quotes remained low at $375/tonne, while Pakistani quotes rose to $372/tonne, according to the latest update on global rice prices, released by the United States Department of Agriculture (USDA) on Tuesday.
DSE turnover hits three-month high
Turnover on Dhaka Stock Exchange (DSE) on Tuesday hit three months high as investors put fresh stakes on stocks amid budgetary expectations. Turnover stood at Tk 5.78 billion on the country’s premier bourse, climbing further by 19 per cent over previous day’s Tk 4.84 billion.