• Oppn’s 3rd day blockade in progress amid violence
  • New protest clashes shake Thai capital
  • Syed Ashraf's motorcade attacked
  • Commerce Minister’s house in Lalmonirhat bomb attacked
  • Blockade extended, now ends Thursday evening
  • Juba Dal leader stabbed to death in Comilla
  • Drivers march towards Khaleda residence to protest blockade
  • BNP activist shot dead in Natore
  • ICT declines Azhar’s privileged communication with lawyers
  • IMF approves disbursement of US$140.4mn for Bangladesh
  • Court grants bail to two TV journalists
  • Japan hopeful of ‘all-inclusive’ election in Bangladesh
  • Bangladesh opposition confirms poll boycott on deadline
  • UN resident coordinator meets CEC
  • Arson, blast mark opposition’s blockade in capital
  • Juba Dal leader shot dead in Bogra
  • Business leaders going to meet Hasina, Khaleda tonight
  • 1 killed in AL-oppn clash in C’nawabganj
  • Govt put its last nail in the coffin of democracy: BNP
  • Door to agreement is still open: Khaleda
HOME  BUSINESS
  
Print Friendly and PDF

Hefty borrowings on cards for next fy̢۪s draft budget

Nazmul Ahsan

The Finance Ministry has taken the task of preparing the draft budget for fiscal 2014-15 depending on hefty borrowings from the banks to meet the deficits.
According to the Finance Ministry estimates in fiscal 2014-15 the deficit could reach Tk 67,353 crore, equivalent to five per cent of the gross domestic product, up from current fiscal’s 4.6 per cent.
And the finance ministry plans to meet Tk 43,160 crore from domestic borrowings, Tk 32,947 crore from banks and the rest from non-banking sources including savings instruments, show the draft budget document.
The poor possibility of receiving the needed low-cost project finances from abroad led the finance ministry to plan hefty bank borrowings, said officials.
Finance Minister AMA Muhith approved the draft budget outline for the next fiscal, but asked for vigorous drives to secure assistance from abroad to cut down the burden the government would otherwise have to shoulder, a finance ministry official told New Age Saturday.
Muhith also stressed the need for securing the huge project assistance in the pipe-line to avoid increased government borrowings that would crowd out private investment, he said.
The draft budget for the next fiscal, the preparation of which has been taken at hand seven months before the current fiscal ends in June 2014, on the assumption that an ambitious eight per cent GDP growth would be achieved in 2014-15 keeping inflation at six per cent.
The exercise has begun amid poor macro-economic outlook.
‘When national earnings decrease, evaluation for a given period generally takes place earlier,’ a budget official told New Age referring to current fiscal’s probable  revenue shortfall of between Tk 10,000 crore and Tk 13,000 crore from the NBR portion.
The shortfall could increase to Tk 18,000 crore or Tk 20,000 crore if revenue collection from non-NBR and non-tax heads follow NBR’s collection trends in a business environment made gloomy by prevailing political turbulence, the official added.
Officials said that 80 per cent of the government’s revenue comes from the NBR portion which includes customs, income tax, VAT, and the rest from non-NBR sources like vehicle duty, stamp duty and road tax and the like and non-tax sources like service charges and various registration fees.  
Officials said that they were drafting the budget on the expectation that the government would receive Tk 24,200 crore in loans from abroad.
At a recent meeting NBR high officials  informed the finance minister that customs duty collection could fall short by Tk 6,000 crore
to Tk 7,000 crore , value added tax by Tk 3,000 crore to Tk 4,000 crore and income tax by Tk 1,000 crore to Tk 2,000 crore in the current fiscal.
For the current fiscal, the government set the revenue collection target at Tk 1,36,090 crore.
The government borrowed from the banks Tk 5,000 crore in the first four months of the current fiscal.
And there is every possibility that the government’s borrowings from the banks could exceed the target of Tk 25,993 crore set for the fiscal, said a senior finance ministry official.
He said the deficit in the current fiscal’s revised budget could exceed 4.6 per cent of the GDP, the target for the year, amid soaring revenue expenditures and shrinking earnings.
Going by the trend, he said, ‘The deficit could increase substantially in the next fiscal forcing the government to borrow more from the banks.
The economic outlook would depend on political developments in the coming days, he said.
The political developments are bound to impact the national economy and budget preparations, he said.




Reader’s Comment

comments powered by Disqus
   

Hefty borrowings on cards for next fy̢۪s draft budget

The Finance Ministry has taken the task of preparing the draft budget for fiscal 2014-15 depending on hefty borrowings from the banks to meet the deficits. According to the Finance Ministry estimates in fiscal... Full story

Mitsubishi places formal scheme for assembling sedan car in B̢۪desh

A file photo shows Mitsubishi sedan cars are on display at a showroom in Tokyo. The Japanese automobile company Mitsubishi Motors Ltd has recently placed a formal proposal to the Bangladesh Steel and Engineering Corporation for assembling sedan car in Bangladesh, officials concerned said. — AFP photo
Japanese automobile giant Mitsubishi Motors Ltd has recently placed a formal proposal to the Bangladesh Steel and Engineering Corporation for assembling sedan car in Bangladesh as soon as possible in a bid to catch the market through supplying... Full story

Australia̢۪s Kmart, Target to limit RMG buying in B̢۪desh

KMART and Target owner Wesfarmers has dropped some of its suppliers in Bangladesh following the garment factory collapse in that country in April, says director Diane Smith-Gander, reports The Australian newspaper. Full story

Five new banks become PDs of govt securities

Five newly-established commercial banks on Sunday got listed with the central bank as primary dealers of the government securities, said officials of the Bangladesh Bank. The five banks are NRB Commercial Bank, South Bangla... Full story

NBFI can collect term deposits for 3-month tenure

Bangladesh Bank on Sunday said that non-bank financial institutions would be able to collect term deposits from clients and institutions for three-month tenure instead of exiting six-month. To this end, the BB issued a... Full story

Application deadline for stock scheme extended to Dec 15

A file photo shows Bangladesh Securities and Exchange Commission’s building in the capital. The supervision committee for the government refinance scheme for the small-scale investors affected by the 2010-11 stock market crash has decided to extend the deadline for receiving loan applications from merchant banks and brokerage houses to December 15. — New Age photo
The supervision committee for the Tk 900-crore government refinance scheme for the small-scale investors affected by the 2010-11 stock market crash has decided to extend the deadline for receiving applications from merchant banks and brokerage houses to December 15. Full story

Political unrest hits stocks hard

Dhaka stocks decreased for the fourth trading session on Sunday with a decreased turnover as the current political violence made the investors panicky. The benchmark general index of Dhaka Stock Exchange, DSEX, dropped to 4,147.20 points, shedding... Full story

DSE̢۪s Nov foreign investment up17pc

Net foreign investment at the Dhaka Stock Exchange increased by 17 per cent in November compared with that in the previous month as lucrative share prices lured overseas investors. The investment stood at Tk 276.72 crore in November as... Full story

WTO faces fight for survival at summit

The WTO meets for a crunch summit in Indonesia this week billed as a do-or-die attempt to salvage an elusive deal on global commerce and, with it, the 159-member trade body̢۪s own relevance. New WTO chief Roberto Azevedo will be seeking... Full story

Sheltech offers special promo in December

Real estate company Sheltech (Pvt) Ltd has announced a special year-ending sales programme in the month of December, said a news release on Saturday. Throughout the month, the company will promote its... Full story

China posts robust factory growth

China̢۪s factory growth held at an 18-month high in November on firm domestic and foreign demand, defying expectations the economy faces a modest slowdown as 2013 draws to a close. Full story

Foreign investors return to Spain

A year after fleeing Spain as its economy tottered on the brink of a full-blown sovereign bailout, foreign investors are coming back. The prospect of relatively high returns in a eurozone economy emerging from recession with a strong corporate... Full story

Market Disclosures

Standard Bank The company has informed that the board of directors of the company has recommended to issue of Non-Convertible Subordinated Debt (Bond) for Tk 200 crore to meet capital requirements under Basel-II subject to approval... Full story
  • Online Poll


    Do you think that the government has successfully brought back normalcy in public life after the January 5 elections?

    • Yes
    • No
    • No comment
    Ajax Loader