in Bangladesh on Sunday announced a
‘stimulus package’ of Tk 3,424 crore with blanket coverage of power,
agriculture and export sectors to help the national economy weather the
fallouts of global recession.
package, the finance minister, Abul Maal Abdul Muhith said financial, fiscal
and policy measures required for overcoming the crisis would be taken in the
next budget as well on the basis of regular review of the situation.
Out of the total amount, only Tk 450 crore will be
spent on supporting three export sectors as the government raised cash
incentive to 10 per cent from 7.5 per cent for jute and jute goods, to 17.5 per
cent from 15 per cent for leather and leather goods and to 12.5 per cent from
10 per cent for frozen foods.
In this package to be adjusted with the current budget, an amount of Tk 1,500 crore has been earmarked for additional farm subsidy and Tk 600 crore for power sector while Tk 500 crore will be channelled to agricultural loan recapitalisation facility and Tk 374 crore to social safety net.
The government is trying to stimulate domestic demands in the face of probable negative external effects, he said maintaining that export sectors other than the three that drew cash incentive would be provided with similar support. He said cash would be disbursed timely.
Critics termed the package inadequate and said it lacked proper focus on industries and sectors that had been affected by or vulnerable to the worldwide financial meltdown. Small-scale industries and remittance sector are said to have been ignored in the package.
Two of our stringers in Dhaka have sent reports on this.