Tk 50b stimulus package for recession-hit sectors
Friday, 12 June 2009
FE Report
The government has allocated Tk50 billion in the next budget as "stimulus package" to rescue the country's ailing exporters from the spillover effects of the global economic recession.
Finance minister AMA Muhith unveiled the new and expanded sops for the industry, including apparel and some of the hard-hit sectors like frozen food, after the exporters slammed the previous one as 'inadequate.'
Muhith said the additional spending was needed as the global slump has bit the economy, with growth expected to slide to a seven year low to 5.5 per cent in the upcoming fiscal year, after diving to 5.9 per cent in the outgoing financial year.
"The global recession impacted our economy in three fronts: export, import and remittance," the minister said, adding that exports of most items excepting apparel have declined sharply compared to the previous year."
"The growth of export in RMG and textiles is also going down."
The minister said the previously declared Tk 34.24 billion stimulous package would be widened to prop up all other affected sectors.
"May I assure you that programmes under stimulus package would continue to be expanded consistent with the need and within our affordability," he said.
"We will not let the export industry, which is currently undergoing a setback, to go sick," he said, adding exports and imports have born compared.
He also assured the exporters that their needs would be taken care of in the new package, following their complaints that the previous one only set aside a paltry Tk4.50 billion cash subsidies for them.
"We know that the government has an obligation to do more to enhance the capacity of the exporters," he said, adding the new package were "designed consistent with our charted strategies".
"To this end we are closely monitoring the whole situation so that we can take immediate decisions in order to protect the exporters' interests," the minister said.
Muhith's budget speech, however, has not specified how and where the new allocation would be spent.
The government in April last also announced the first sops amounting to Tk 34.24 billion in the wake of growing calls for bailout by the hard hit sectors.
Under that package, Muhith said cash incentives for export of jute goods, leather and leather goods, and frozen foods will be increased by 2.5 percent.
Of the total, Tk 15 billion was allocated to agriculture, Tk 6.00 billion for power sector, Tk 5.00 billion for re-capitalisation of agriculture loans and Tk 3.74 billion for social security programmes.
The government has allocated Tk50 billion in the next budget as "stimulus package" to rescue the country's ailing exporters from the spillover effects of the global economic recession.
Finance minister AMA Muhith unveiled the new and expanded sops for the industry, including apparel and some of the hard-hit sectors like frozen food, after the exporters slammed the previous one as 'inadequate.'
Muhith said the additional spending was needed as the global slump has bit the economy, with growth expected to slide to a seven year low to 5.5 per cent in the upcoming fiscal year, after diving to 5.9 per cent in the outgoing financial year.
"The global recession impacted our economy in three fronts: export, import and remittance," the minister said, adding that exports of most items excepting apparel have declined sharply compared to the previous year."
"The growth of export in RMG and textiles is also going down."
The minister said the previously declared Tk 34.24 billion stimulous package would be widened to prop up all other affected sectors.
"May I assure you that programmes under stimulus package would continue to be expanded consistent with the need and within our affordability," he said.
"We will not let the export industry, which is currently undergoing a setback, to go sick," he said, adding exports and imports have born compared.
He also assured the exporters that their needs would be taken care of in the new package, following their complaints that the previous one only set aside a paltry Tk4.50 billion cash subsidies for them.
"We know that the government has an obligation to do more to enhance the capacity of the exporters," he said, adding the new package were "designed consistent with our charted strategies".
"To this end we are closely monitoring the whole situation so that we can take immediate decisions in order to protect the exporters' interests," the minister said.
Muhith's budget speech, however, has not specified how and where the new allocation would be spent.
The government in April last also announced the first sops amounting to Tk 34.24 billion in the wake of growing calls for bailout by the hard hit sectors.
Under that package, Muhith said cash incentives for export of jute goods, leather and leather goods, and frozen foods will be increased by 2.5 percent.
Of the total, Tk 15 billion was allocated to agriculture, Tk 6.00 billion for power sector, Tk 5.00 billion for re-capitalisation of agriculture loans and Tk 3.74 billion for social security programmes.