State-owned entities will be required to directly deposit their debt-service liability (DSL) with the exchequer through automated chalan to avoid payment delay and account mismatch, officials said, as arrears ballooned.
The ministry of finance made the decision last week as arrears accumulated over Tk 2.18 trillion with 142 state-owned entities as interest and principal against loans taken from the government for they are not making payment as per repayment schedule.
Finance Division officials found that many autonomous, semi-autonomous, local government, self-governed entities, and corporations deposit payments with their controlling organisations by cheque in time.
However, the controlling bodies do not deposit the money with the exchequer through automated chalan in time.
As a result, they said, the volume of total dues continues to rise as additional interest is being calculated on due debts because of delayed payment.
The controlling entities sometimes do not send copies of automated chalan to the finance division or make delay in sending them, which creates mismatch over due DSL between the finance division and state entities.
Sources said the finance division last week held a meeting to find ways of getting out of the account mismatch where the decision was taken that the division will soon issue a notification asking all autonomous, semi-autonomous, local government, self-governed entities, and corporations to make DSL payment directly to the public exchequer.
A senior finance official said the state-run corporations/companies sign loan agreement as separate entities apart from their controlling organisations. Besides, the companies/companies themselves are separate legal entity and they can sign deal, get loan, make repayment, and cases can be filed against them.
"There is no legal barrier to depositing DSL directly with the public exchequer through automated chalan. This will help lessen account mismatch between the finance division and the borrowers," says the official.
Finance Division officials say the debt-service liabilities of the state-owned enterprises have increased continuously over the years. Until June 2023, the DSL had stood at Tk 1.83 trillion which this June increased to Tk 2.18 trillion.
They say the stagnancy of such a big amount of money to the state-owned enterprises has been hampering the implementation of development projects.
Bangladesh Power Development Board (BPDB), Rural Power Company Ltd, Bangladesh Textile Mills Corporation, Bangladesh Handloom Board, Textile Industry Liquidating Cell, Bangladesh Sericulture Development Board, Bangladesh Jute Mills Corporation, Bangladesh Fisheries Development Corporation, Bangladesh Road Transport Corporation, Dhaka Mass Transit Company, Bangladesh Bridges Division, and Bangladesh Infrastructure Finance Fund are among the top state entities that owe huge dues to the government.
© 2024 - All Rights with The Financial Express
