• Libya's deputy industry minister shot dead
  • Israelis pay last respects to Sharon
  • Tribunal pardons two Bagerhat lawyers
  • Farmer murdered in Natore
  • Writ seeks stay on swearing in of new cabinet
  • Hasina takes oath as PM
  • New cabinet swears in
  • Permit to kill Namibia black rhino fetches $350,000 in US
  • Writ filed seeking 10th parliamentary election again
  • 21 injured in Chittagong road accident
  • We’re for 5 yrs: Ashraf
  • Ershad PM’s special envoy
  • Manmohan congratulates Hasina
  • Oppn’s blockade draws poor response
  • Won’t bow to int’l pressure: PM
  • Shibir man killed in clash with BCL at CU
  • Portfolios of new cabinet members
  • Ominous start: BNP
HOME  BUSINESS
  
Print Friendly and PDF

Tk 10,000cr cut in ADP on cards

Shakhawat Hossain

The government is likely to compromise the development budget in the current fiscal year because of a sharp rise in non-development expenditure.
Finance ministry officials said an amount of Tk 10,000 crore was likely to be slashed from the projected annual development programme worth Tk 65,780 crore to meet the rising non-development costs in the crucial election year.
Plummeting revenue and low utilisation of foreign loans and grants against the rising non-development costs because of pay hike for public servants and allowances for defence and law enforces might force the government to go for around 15 per cent cut in the ADP, they said.
Experts said the country’s growth forecast in the current fiscal year would be lowered further if the government fails to implement the projected ADP to lift the falling private sector investment.
Available data showed that the country’s private sector credit growth achieved only 4.41 per cent in July-November of 2013 against half-yearly target of 15.50 per cent as the businessmen remained shy of investment.
The finance ministry officials, however, said the revised outlay of the ADP was yet to be finalised by the planning ministry.
The finance ministry has already conveyed its concern to the Planning Commission as the later has started the process of revising the ADP.
National Board of Revenue chairman Ghulam Hussain told New Age that the revenue shortfall would cross Tk 13,000 crore in this fiscal year.
The shortfall might hit Tk 15,000 crore if the current political unrest continues, he said.
A total of Tk 24,563 crore or 37.30 per cent of the ADP is projected to come from the lending agencies.
But availability of project aids might be disrupted following the January 5 general polls which were boycotted by the BNP-led alliance.
It is reported that the United States and the United Kingdom were reviewing whether to continue funding aid programmes involving the new parliament in Bangladesh.
The government has been paying 20 per cent dearness allowances to the public officials and employees since last October.  The hike in salary would cost the government Tk 4,000 crore annually.
It has enhanced risk allowances for police that would require additional Tk 3.5 crore in the current year. Besides, risk allowances for other agencies are under process which would push up the non-development cost further.
Ahsan H Mansur, executive director of the local think-tank Policy Research Institute, said 6 per cent growth projected by many early this fiscal year looked uncertain.
He said sluggish business activities due to political unrest had marred a good growth prospect in the current fiscal year.




Reader’s Comment

comments powered by Disqus
   

Tk 10,000cr cut in ADP on cards

The government is likely to compromise the development budget in the current fiscal year because of a sharp rise in non-development expenditure. Finance ministry officials said an amount of Tk 10,000 crore was likely to be slashed... Full story

Committee formed to end row over sweater factory worker payment

An employee is seen working in a sweater factory in Dhaka on Saturday. The government has taken a move to resolve a prevailing dispute over the payment of piece-rate basis for the sweater factory workers. — New Age photo
The government has taken a move to resolve a prevailing dispute over the payment of piece-rate basis for the sweater factory workers. The government has recently formed an 11-member committee comprising the representatives from factory... Full story

Govt sharply cuts interest rate on securities

The government has sharply cut the interest rate on the short-term government securities over the last few months as scheduled banks with huge idle fund continue to submit a large number of bids in the auction of treasury bills... Full story

Ministry rejects BTRC bid to appoint consultant

The posts and telecommunications ministry has turned down a proposal by the telecom regulator to appoint a consultant for overseeing cyber security of the country, said officials. Full story

Tech gets in your head, literally, to ease stress

Yes, technology can get into your head, says the maker of a new brain-sensing headband that promises to reduce stress. The Muse headband from Canadian-based Interaxon presented at the Consumer Electronics Show... Full story

GM recalling 3,70,000 large pickups

General Motors Co said on Friday it was recalling about 3,70,000 of its redesigned full-size Chevrolet Silverado and GMC Sierra pickup trucks globally to reprogram software that could cause parts of the exhaust to overheat and lead to fire. Full story

US stocks end week mostly higher

Momentum has slowed on Wall Street after the surge at the end of 2013, but the stock market's tally at week's end was still respectable, even if not outstanding. While the market spent much of the week in the red, two of the three indices... Full story

BEXIMCO

Bangladesh Export Import Company Limited was incorporated in Bangladesh in 1972 under the Companies Act, 1913 as a public limited company and commenced its commercial operation in the same year. Full story

DITF begins, but not in full swing

A few visitors are seen at the gate of the Dhaka International Trade Fair 2014 at Sher-e-Bangla Nagar in Dhaka on Saturday. The month-long fair was inaugurated on the day with a large number of stalls and pavilions still remaining incomplete. — New Age photo
The Dhaka International Trade Fair 2014, the 19th edition of the annual event, was on Saturday inaugurated with a large number of stalls and pavilions still remaining incomplete. During a visit, this correspondent found only 60 per cent stalls and pavilions operating... Full story

Stocks gain for 2nd week on MPS hopes, bubble anticipation

Dhaka stocks advanced last week, second week in a row, with an increased turnover ahead of the announcement of the monetary policy by the central bank. Market operators said anticipation of another bubble at the market ahead... Full story

Target breach worse than thought, states launch joint probe

The data breach at Target Corp over the holiday shopping season was far bigger than initially thought, the US company said on Friday, as state prosecutors announced a nationwide probe into the second-biggest retail cyber attack on record. Full story

Toyota aims to produce over 10m autos in 2014

Toyota Motor is aiming to produce more than 10 million vehicles in 2014, a bullish target that could boost other industries in Japan, a report said on Saturday. The Toyota group’s production may fall temporarily after April... Full story

BEOL gets new GM

Inam Ahmed has recently been appointed general manager of Bangladesh Edible Oil Limited with effect from January 1, said a news release. Inam, a mechanical engineer form BUET, worked at different national and multinational companies like... 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